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The Vietnamese automotive industry has witnessed a notable surge in activity during the initial months of 2025. Not only has there been a significant rise in the output of domestically produced vehicles, but several new automakers have also chosen Vietnam as the location for their upcoming factories.
Domestic Vehicle Production Almost Doubles
According to a report by the General Statistics Office, Vietnam is estimated to have produced approximately 36,700 automobiles of various types in March. From the beginning of the year until now, the country’s domestic automobile output is estimated to have reached around 106,400 vehicles.
Compared to the first quarter of 2024, Vietnam’s domestic automobile production in the first few months of this year has grown by 81.5%, almost doubling.
| Domestic Automobile Manufacturing Thriving in the First Quarter | ||||
| Domestic automobile production in Vietnam during the first three months (Data source: General Statistics Office) | ||||
| Label | January | February | March (Estimated) | |
| vehicles | 37,800 | 31,900 | 36,700 |
Prior to this, automotive production in Vietnam experienced a slight dip in February. This period coincided with the Tet holiday season, resulting in a temporary decrease in both the supply and domestic demand for automobiles.
In the first two months of the year, Vietnam’s automotive sales reached 40,499 units according to a report by the Vietnam Automobile Manufacturers’ Association (VAMA). This figure includes 20,187 domestically assembled vehicles (a 23% increase compared to the same period last year) and 20,312 imported cars, reflecting a 41% growth.
Specifically, VinFast’s separate report revealed that their electric vehicle sales in Vietnam reached nearly 23,000 units in the first two months. VinFast is also one of the few automakers that produce all of their vehicles in their Vietnam-based factory.
Vietnam Emerges as a Preferred Destination for Automakers
Currently, Vietnam is home to factories of renowned automakers such as Toyota, Hyundai, Ford, Kia, Mazda, Wuling, Suzuki, and VinFast, as well as luxury brands like Mercedes-Benz and BMW.
Recently, Skoda inaugurated its factory in Quang Ninh province, with the Skoda Kushaq being the first model to roll off the assembly line.
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The Skoda Kushaq is the first product of the Skoda factory in Quang Ninh province. Photo: Phuc Hau. |
Additionally, the Omoda and Jaecoo brands, which are part of China’s Chery Group, will soon commence production in their Vietnam-based factory. The joint venture between the Geely Group and Tasco to establish a manufacturing facility for Geely and Lynk & Co vehicles is also expected to break ground and become operational soon.
The Chery Group of China has even designated Vietnam and Malaysia as the locations for their global factory network. Specifically, Chery has identified Vietnam as the main hub for automobile production in Southeast Asia.
In October 2024, Hyundai Thanh Cong announced the export of the fourth batch of Hyundai Palisade SUVs to Thailand, bringing the total number of Palisade vehicles exported to the Thai market to 110 units.
Prior to Hyundai, companies such as VinFast and Thaco have also ventured into exporting automobiles to Southeast Asian countries and even farther markets like the United States and Canada.
Overall, Vietnam’s automotive industry is off to a promising start. With the involvement of new automakers, the domestic automobile output in Vietnam is anticipated to continue its upward trajectory in the coming months.
Suggested Reading for Your Journey
Our Automotive section offers a diverse range of captivating book titles to accompany you on your travels. During those moments of relaxation and leisure, let these books enrich your journey and provide a delightful escape.
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