Despite challenges such as declining consumer demand, 2024 was a notable year for Vietnam's automobile industry, marked by significant milestones and impactful developments. Below are five major events and issues that shaped the automotive sector in Vietnam this year.

1. Continued support with 50% registration fee reduction for locally manufactured vehicles

The government implemented Decree No. 109/2024/ND-CP on August 29, 2024, reducing registration fees for locally manufactured and assembled vehicles by 50% during September, October, and November 2024.

This marked the fourth time this policy was enacted since the COVID-19 pandemic, previously applied in 2020, 2021-2022, and 2023 for longer durations.

Despite being in effect for only three months, the reduction boosted domestic automobile sales significantly. According to the Vietnam Automobile Manufacturers' Association (VAMA), 119,546 units were sold during the promotional period, a 48.2% increase compared to the prior three months.

This policy also prompted price adjustments and promotions across both domestic and imported vehicles, a rare occurrence in prior years.

2. Vietnam Motor Show 2024 returns with a new focus

The Vietnam Motor Show (VMS), the country’s largest annual automotive event, resumed in October 2024 after being canceled in 2023.

This year, the exhibition featured only 11 automobile brands, including GAC, Isuzu, Mitsubishi, Honda, Skoda, Subaru, Suzuki, Toyota, MG, BYD, and GAZ. The absence of luxury brands like Mercedes-Benz, BMW, and Audi, as well as popular manufacturers like VinFast, Hyundai, and KIA, diminished its appeal.

However, the event introduced a new focus on environmentally friendly vehicles, showcasing electric and hybrid models. For the first time, motorcycle brands such as Honda, Yamaha, and Harley-Davidson also participated, signaling a shift in the event’s strategy to cater to changing market dynamics.

3. VinFast becomes Vietnam's top-selling automotive brand

In October 2024, VinFast achieved a major milestone by becoming Vietnam's best-selling car brand. By November, the electric vehicle manufacturer had delivered over 67,000 units in the domestic market, with annual sales projected to exceed 80,000 vehicles.

This achievement represents a pivotal moment for Vietnam's automotive industry, as VinFast surpassed long-dominant foreign brands like Hyundai and Toyota to lead the market.

The introduction of new models such as the VF3 mini electric car in May 2024 further solidified VinFast's position. The company also expanded its nationwide charging network, offering over 150,000 charging ports across all 63 provinces. Additionally, VinFast announced free charging for its vehicles until June 2027, reinforcing its commitment to customer satisfaction.

4. Influx of Chinese automobile brands into Vietnam

2024 saw the entry of seven new Chinese car manufacturers into Vietnam, increasing the total number of Chinese brands in the country to 13. This marks the largest influx of Chinese brands in a single year.

BYD entered the Vietnamese market in July 2024, followed by Omoda and Jaecoo in November. Other notable entrants include GAC, Aion, Geely, and Zeekr. Many of these brands are planning local assembly operations, such as Geely’s partnership with Tasco, which aims to establish a manufacturing plant in Thai Binh by 2025.

This wave of new entrants reflects the growing competition in Vietnam's automotive market, particularly in the electric and hybrid vehicle segments.

5. Increased investment in local automotive manufacturing

Vietnam's growing appeal as a manufacturing hub has attracted significant foreign investment in automobile production.

Tasco partnered with Geely to establish a joint venture with a planned capacity of 75,000 units annually, focusing on domestic demand and exports. This $168 million project is set to break ground in early 2025.

Similarly, Geleximco and Chery announced plans to invest $800 million in a production facility in Thai Binh, while Skoda Auto is constructing a factory in Quang Ninh, its first in Southeast Asia. These developments highlight Vietnam's increasing prominence in the global automotive supply chain.

Hoang Hiep