Positive growth signs

In 2024, the Vietnamese auto industry recorded a solid recovery following the COVID-19 pandemic. According to the Vietnam Automobile Manufacturers Association (VAMA), total sales from its members reached 340,142 vehicles, marking a 12.6% increase from 2023.

When including non-VAMA brands like Hyundai and VinFast, the total market size approached 500,000 vehicles, a 22% jump from 2023, nearing the all-time record of 509,141 vehicles set in 2022.

Several brands reported impressive sales growth in 2024:

Toyota: 66,576 vehicles sold (+12.5% YoY)
Ford: 42,175 vehicles sold (+10% YoY, record-breaking sales for Ford in Vietnam)
Mitsubishi: 41,198 vehicles sold (+33.4% YoY)
Honda: 28,267 vehicles sold (+19% YoY)

Meanwhile, Hyundai retained its strong presence with 67,168 units sold, while VinFast made history by becoming Vietnam’s best-selling car brand, delivering over 87,000 EVs - surpassing all foreign automakers.

New models drive market excitement

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VinFast VF 3 introduces a fresh approach to urban driving in Vietnam. Photo: VF

Beyond government incentives and dealer promotions, the introduction of new models played a crucial role in boosting sales. Notable examples include:

VinFast VF 3: This mini electric car, launched in mid-2024, became a game-changer due to its affordable price, compact design, and high customization options. Despite being available for just five months, it sold 25,000 units, making it Vietnam’s second best-selling car, trailing only its sibling, the VF 5 (32,000 units sold).

Mitsubishi Xforce: A newcomer in the B-SUV segment, the Xforce quickly dominated its category, selling 14,407 units and ranking sixth among Vietnam’s top 10 best-selling cars. It outpaced established rivals like the Toyota Corolla Cross, Hyundai Creta, and Kia Seltos.
These two models reflect changing consumer preferences in Vietnam, where affordable electric vehicles and compact SUVs are increasingly in demand.

Policy support needed for further growth

Vietnam’s auto market in 2024 was also shaped by the entry of multiple foreign brands, particularly from China. Seven new Chinese automakers entered the market last year, bringing the total number of active Chinese brands to 13 - surpassing Japan’s nine brands in Vietnam.

Unlike previous Chinese car waves, several companies are making long-term commitments, including local manufacturing investments:

Geely Group signed a joint venture with Tasco to assemble Lynk&Co and Geely Auto vehicles in Thai Binh, with an initial annual capacity of 75,000 units.

Geleximco - Chery announced plans for a $800 million assembly plant, with phase one set to complete by Q1 2026.

Skoda Auto (Czech Republic) partnered with TC Motor to build a factory in Quang Ninh, making Vietnam its first Southeast Asian production hub.

Experts predict that Chinese automakers’ presence will enhance competition and affordability, benefiting Vietnamese consumers.

Outlook for 2025

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Fully electric vehicles and plug-in hybrids (PHEVs) are expected to gain traction in 2025. Photo: Hoang Hiep

According to Nguyen Manh Thang, founder of OTO+ Community, electric vehicles (EVs) will remain a key trend in 2025. However, market expansion depends on factors like government incentives and charging infrastructure.

"The 100% registration fee waiver was crucial for EV growth in 2024. However, starting in March 2025, BEV (Battery Electric Vehicles) will receive only a 50% fee reduction. This might slow down EV adoption. I believe the government should consider extending the full waiver to sustain the market's momentum," Thang said.

Market analysts estimate Vietnam’s auto industry will grow by 8-10% in 2025, setting a new record and solidifying its position among Southeast Asia’s top four auto markets. However, competition will intensify, especially with Chinese brands increasing their footprint.

With more automakers, expanding electrification, and potential policy support, 2025 could be another milestone year for Vietnam’s automotive sector.

Hoang Hai