Breakthrough in Vietnam’s Automotive Industry
Breakthrough in Vietnam’s Automotive Industry
Vietnam’s automotive industry has made significant breakthroughs in recent years. Although it started later than other countries in the region, the industry has experienced remarkable growth over the past three years.
Breakthrough in Vietnam’s Automotive Industry
According to data from the Vietnam Register, domestic automobile production and assembly have increased significantly. In 2018, 287,586 vehicles were produced and assembled domestically; in 2019, this number rose to 339,151 vehicles, and in 2020, it continued to increase to 323,892 vehicles. Notably, in 2022, domestic automobile production and assembly reached 439,600 vehicles, up 14.9% compared to the previous year (2021).
The Ministry of Industry and Trade noted that domestic production and assembly companies have strengthened their position and played an important role in localizing certain vehicle models. Thanks to improvements in the domestic automotive market, both in quantity and quality, Vietnam’s automotive industry has experienced strong growth. This progress would not have been possible without the increased localization and supply capability of domestic supporting industrial products, with companies achieving relatively high localization rates.
Currently, Vietnam’s automotive industry has over 40 companies operating in vehicle production and assembly. Remarkably, several domestic enterprises have actively participated in the global automotive production chain. Moreover, the Vietnamese automotive market has attracted most of the world’s major car manufacturers, such as Toyota, Honda, and Ford, along with numerous foreign suppliers and component manufacturers investing in Vietnam.
According to the Ministry of Industry and Trade, the potential of Vietnam’s automotive market is expected to continue growing in the near future. Currently, the localization rate for certain vehicle types, such as trucks, passenger vehicles with 10 seats or more, and specialized vehicles, has reached high levels, meeting approximately 70–90% of domestic demand. This demonstrates significant progress in Vietnam’s automotive industry in meeting domestic market requirements.
Notably, the number of Vietnamese Tier 1 component suppliers for major automakers has increased substantially, from over 400 companies at the end of 2022—more than a 200% increase compared to 2016. This highlights both the attractiveness and growth potential of Vietnam’s automotive market. It is projected that by 2025, domestic automobile production and assembly could exceed 1 million vehicles, further driving the robust development of Vietnam’s automotive industry.
