Brian Jeffrey
In 2024, Vietnam’s auto industry faced declining consumer interest but still achieved several remarkable milestones. Here are five key developments that influenced the automotive landscape in Vietnam this year.
On August 29, 2024, the government enacted Decree No. 109/2024/ND-CP, which cut registration fees for locally produced and assembled cars by 50% for three months starting September 2024.
This was the fourth time such a measure was introduced since the COVID-19 pandemic, having been previously implemented in 2020, 2021-2022, and 2023 for extended periods.
Although the fee reduction lasted just three months, it led to a significant uptick in domestic car sales. The Vietnam Automobile Manufacturers’ Association (VAMA) reported 119,546 units sold during this period, marking a 48.2% increase from the previous quarter.
This initiative also triggered price changes and new promotions for both domestic and imported vehicles, a situation not often seen in former years.
The Vietnam Motor Show (VMS), the leading automotive exhibition in the country, made a comeback in October 2024 after a hiatus in 2023.
This year’s show featured only 11 brands, including GAC, Isuzu, Mitsubishi, Honda, and others. The lack of luxury labels like Mercedes-Benz and BMW, alongside popular names such as VinFast and Hyundai, reduced its overall allure.
Nonetheless, the event highlighted a commitment to eco-friendly vehicles by showcasing electric and hybrid models. For the first time, motorcycle brands like Honda and Yamaha participated, reflecting an evolution in the event’s focus to meet market changes.
VinFast made history in October 2024 by becoming the top-selling car brand in Vietnam. By November, it had delivered over 67,000 electric vehicles domestically, with expectations of exceeding 80,000 sales for the year.
This shift signifies a critical turning point for Vietnam’s automotive sector, with VinFast outperforming established foreign brands like Hyundai and Toyota. The launch of new models like the VF3 mini EV in May 2024 further cemented VinFast’s leading position, alongside the expansion of its charging network, now offering over 150,000 charging ports nationwide. The company also announced complimentary charging for its vehicles through June 2027, emphasizing its dedication to customer service.
The year 2024 welcomed seven new Chinese car brands into Vietnam, bringing the total number to 13, marking the largest increase in a single year.
BYD entered the market in July 2024, followed by Omoda and Jaecoo in November, along with other brands like GAC and Aion. Many of these newcomers are planning local assembly projects, such as Geely’s partnership with Tasco to set up a factory in Thai Binh by 2025.
This surge of new entrants signifies intense competition in Vietnam’s auto market, especially in the electric and hybrid sectors.
As Vietnam enhances its reputation as a manufacturing destination, significant foreign investments began pouring into its automotive production.
Tasco and Geely initiated a joint venture to produce 75,000 units annually, aiming at both local and export markets. This $168 million initiative is scheduled to kick off in early 2025.
Additionally, Geleximco and Chery revealed plans to invest $800 million in a Thai Binh production facility, while Skoda Auto is establishing its first Southeast Asian factory in Quang Ninh. These ventures underscore Vietnam’s growing importance in the global automotive supply ecosystem.
