H. Yoo
Research expert covering South Korea
Automotive industry in Vietnam - statistics & facts
Purchasing a car has long been considered a significant investment in Vietnam. However, rising incomes, fueled by steady economic growth and a burgeoning middle class, have made car ownership increasingly accessible. With almost half a million cars sold in 2024, Vietnam’s automotive market is among the fastest-growing in Southeast Asia. While these vehicles are still considered high-value purchases, they are becoming more commonplace on the streets of Vietnamese cities, increasingly serving as a preferred mode of transportation alongside motorcycles, which have long dominated urban mobility.
Correspondingly, for many years, foreign brands, especially Japanese and Korean manufacturers, dominate Vietnam’s automobile market due to their affordable price tags and low maintenance costs. In 2024, Toyota and Hyundai were among the leading car manufacturers based on market share in Vietnam. With that said, it is not rare to spot a German automobile on Vietnamese local streets. Often seen as a symbol of luxury and prestige, European car brands have also won over a niche segment of affluent Vietnamese consumers. Meanwhile, VinFast—a homegrown Vietnamese car brand—has emerged as a major player in recent years, offering a refreshing change in the local automotive landscape.
Seven years after its founding, VinFast cemented its leadership in Vietnam’s EV market by delivering over 87,000 electric vehicles in 2024—nearly triple the sale volume the company reported in 2023. This surge was driven largely by the popularity of its compact models, such as the VF5, which became the country’s best-selling vehicles in 2024. This growth highlights both Vietnam’s accelerating transition to sustainable transportation and VinFast’s crucial role in shaping the nation’s green mobility future.
What cars are Vietnamese driving?
Since 2020, the volume of automobiles produced in Vietnam has witnessed gradual growth to meet domestic demand. However, the production of assembled automobiles by local manufacturers remains modest as it depends heavily on the imports of advanced parts. As a result, imported cars are widely popular in Vietnam due to the limited capacity and capability of the domestic sector despite notoriously high import taxes for foreign automotive vehicles.Correspondingly, for many years, foreign brands, especially Japanese and Korean manufacturers, dominate Vietnam’s automobile market due to their affordable price tags and low maintenance costs. In 2024, Toyota and Hyundai were among the leading car manufacturers based on market share in Vietnam. With that said, it is not rare to spot a German automobile on Vietnamese local streets. Often seen as a symbol of luxury and prestige, European car brands have also won over a niche segment of affluent Vietnamese consumers. Meanwhile, VinFast—a homegrown Vietnamese car brand—has emerged as a major player in recent years, offering a refreshing change in the local automotive landscape.
VinFast and Vietnam’s shift toward electric vehicles
Vietnam is undergoing a significant transition toward electric vehicles (EVs), supported by government policies including tax incentives, infrastructure investments, and encouragement of local EV manufacturing. These efforts are laying the groundwork for Vietnam to reach its target of one million EVs on the road by 2028. At the forefront of this shift is VinFast, the country’s first all-electric automaker, established in 2017. The company has played a transformative role in shifting Vietnam from a net importer of cars into an emerging producer of electric vehicles.Seven years after its founding, VinFast cemented its leadership in Vietnam’s EV market by delivering over 87,000 electric vehicles in 2024—nearly triple the sale volume the company reported in 2023. This surge was driven largely by the popularity of its compact models, such as the VF5, which became the country’s best-selling vehicles in 2024. This growth highlights both Vietnam’s accelerating transition to sustainable transportation and VinFast’s crucial role in shaping the nation’s green mobility future.
