Vietnam’s domestic car production is estimated to reach 388,500 units in 2024, reflecting a 27% increase compared to 2023, according to the General Statistics Office (GSO).
During the three-month registration fee reduction period from September to November, approximately 134,500 vehicles were produced, accounting for one-third of the total annual output.
However, December 2024 saw a drop in production to 47,000 units, down from 52,400 units in November, primarily due to the expiration of the 50% registration fee reduction policy for domestically manufactured and assembled cars. In anticipation of reduced demand, manufacturers scaled back production to prevent excessive inventory as they entered 2025.
By the end of November 2024, sales of domestically assembled vehicles reached 159,868 units, representing a 1.6% year-on-year increase and accounting for 59.5% of total car sales in Vietnam.
While the growth appears modest, it is significant given that the 2024 registration fee reduction policy lasted only three months, compared to six months in 2023.
Strategic Investments Drive Future Growth
Looking ahead, Vietnam’s automotive sector is poised for continued growth, driven by increased manufacturing investments and the entry of new international players.
Chinese brands Omoda, Jaecoo (Chery), Geely, and Lynk & Co. are establishing manufacturing facilities in Thai Binh to serve the domestic and regional markets.
Skoda, a European car brand, began trial operations of its manufacturing plant in Quang Ninh at the end of 2024. The factory, with an annual capacity of 120,000 units, is set to begin commercial operations in early 2025.
VinFast, Vietnam’s homegrown automaker, commenced construction of an electric vehicle (EV) factory in Ha Tinh. The plant will focus on producing the VF 3 and VF 5 models, two of the company’s most popular vehicles.
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A Luxury car. Credit: Sourav Mishra/ pexels.comVietnam’s Automotive Future
The establishment of domestic manufacturing facilities will not only secure stable supply chains but also enable automakers to leverage government support policies effectively. These developments are expected to boost sales, drive further investment, and position Vietnam as an emerging automotive hub in the region.
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Source: Vietnam Insider