Affordable Imports: A Flood of Cars Under 500 Million Dong Enter Vietnam

According to the latest report from the General Department of Vietnam Customs, in June, the Vietnamese market received a total of 15,890 completely built-up (CBU) automobiles imported from abroad, marking a 6.4% increase in volume compared to the previous month’s report.

However, the total trade value of CBU automobiles in June reached just over $310 million, a slight decrease of 0.1% from the previous month’s report.

With a total trade value of over $310 million, the average value of imported automobiles into Vietnam last month was approximately $19,556, equivalent to around VND 497 million. This value aligns with the price range of vehicles in the B-segment sedans, A-segment SUVs, or affordable MPVs currently available in the Vietnamese market.

Cumulative data for the year shows that the Vietnamese automobile market has received a total of 74,585 CBU automobiles of various types imported from foreign markets, with a total trade value of approximately $1.55 billion. Compared to the first half of last year, CBU automobile imports into Vietnam have increased by 5.2% in volume but decreased by 6.4% in trade value.

Additionally, the report from the General Department of Vietnam Customs indicates that Indonesia has officially become the largest provider of imported automobiles for Vietnamese consumers in the first half of 2024. A total of 32,797 automobiles of Indonesian origin were imported into Vietnam during the first two quarters of the year, with a trade value of over $478 million.

Indonesian Automobiles Dominate the Vietnamese Market in the First Half of the Year
Origin of Imported Automobiles in the Vietnamese Market in the First Six Months, by Country (Data: General Department of Vietnam Customs)
Label	Indonesia	Thailand	China	Japan	USA	Other Countries
	Units	32797	23736	14729	1377	430	1516

The gap in the volume of imported automobiles between Indonesia and Thailand, the second-largest source country, is widening. At the end of the first six months, Thailand had exported a total of 23,736 CBU automobiles to Vietnam, with a trade value of over $463 million.

China is the third-largest source of imported automobiles for the Vietnamese market, with a total of 14,729 vehicles clearing customs in the first half of the year and a trade value of nearly $456 million. Japan exported 1,377 vehicles to Vietnam during this period, while the number of CBU automobiles from the USA that arrived at Vietnamese ports by the end of June stood at 430 units.

Reports from the Vietnam Automobile Manufacturers Association (VAMA) indicate that the sales of imported automobiles in Vietnam are showing a more positive trend compared to domestically assembled vehicles. In the last two reporting periods, the sales of imported automobiles have consistently outperformed the sales of vehicles produced on local assembly lines.

As of the end of May, the total Vietnamese automobile market had consumed 108,309 vehicles of all types, a 5% decrease compared to the same period last year.

Before the June sales figures were released, the cumulative sales gap between imported and domestically assembled vehicles in the Vietnamese market was temporarily at 1,465 units. Specifically, domestically assembled vehicles recorded sales of 54,887 units since the beginning of the year, while the consumption of imported automobiles during the same period stood at 53,422 units.

Currently, the best-selling automobile model in Vietnam is the Mitsubishi Xpander, with a total sales volume of 6,537 units in the first five months. Of these, 5,936 units of the imported Xpander were delivered to Vietnamese customers, accounting for nearly 91% of the total sales volume.