Vietnam Insider – Vietnam’s auto parts and transport equipment sector is rapidly becoming a global export force, with the United States, Japan, and South Korea emerging as top buyers.
According to preliminary data from Vietnam’s General Department of Customs, exports of transport vehicles and components reached over USD 1.4 billion in May 2025, marking a 5% increase month-over-month. Cumulatively, the first five months of 2025 brought in USD 6.7 billion, up 8.6% compared to the same period last year.
The United States is currently Vietnam’s largest importer in this category, with import value exceeding USD 1.37 billion, reflecting an 8.4% increase year-on-year. Japan follows closely with over USD 1.32 billion in imports, a 14.1% rise, while South Korea ranks third at nearly USD 700 million, up 2% compared to the same period in 2024.
Vietnam has emerged as the third-largest exporter of automotive wiring harnesses globally, trailing only China and India, according to experts from the United Nations Industrial Development Organization (UNIDO). This success is attributed to the global shift in manufacturing away from China to more agile Southeast Asian markets like Vietnam, where companies are increasingly integrating into the global automotive supply chain.
In recent years, Vietnam’s auto parts export sector has consistently achieved double-digit growth, fueled by its capacity to meet large-scale production demands. Vietnamese enterprises are gaining ground in specialized components, especially automotive electrical wiring, which is now being exported to major automotive hubs including Japan, the U.S., the EU, and Thailand.
Despite these gains, new challenges are emerging. As of May 3, 2025, the U.S. Trade Representative (USTR) has implemented a 25% import tariff on 332 categories of auto parts, encompassing mechanical, electronic, transmission, and control system components. This follows the Trump administration’s re-imposition of tariffs on finished vehicles in April, part of broader efforts to protect domestic manufacturing and reduce trade deficits.
Economists suggest that for Vietnam to sustain momentum, the country must invest more aggressively in production technology, digital transformation, and quality control. Expanding FDI partnerships and accelerating the development of specialized industrial zones with modern logistics infrastructure will be key to attracting high-profile investors from countries like Japan, Germany, the U.S., and South Korea.
Looking ahead, 2025 is poised to be a breakthrough year for Vietnam’s auto parts exports. According to the Ministry of Industry and Trade, the country is strategically positioning itself for the next generation of vehicles—including electric vehicles (EVs), hybrids, and green energy-powered cars. By 2030, Vietnam aims to achieve USD 14 billion in exports of vehicles and parts, with a long-term target of USD 36 billion by 2045.
As Vietnam continues to rise as a strategic link in the global automotive supply chain, its “emerging goldmine” of high-value auto parts is gaining the attention of the world’s top economies.
Related
Discover more from Vietnam Insider
Subscribe to get the latest posts sent to your email.
Source: Vietnam Insider