Vietnam’s production of spare parts and accessories for motor vehicles and motor vehicle engines increased by 125.7 percent in January compared to the 2019 baseline, according to Vietnam’s Industrial Production Index. However, this was a decline from December 2024, when output was 178.0 percent above 2019 levels.
Month-on-month, production fell by 17.4 percent in January compared to December. Year-on-year, the sector also recorded a 6.7 percent decrease from January 2024.
Of note, Vietnam’s production of spare parts and accessories for motor vehicles and motor vehicle engines is a key sector within the country’s automotive industry. As the country’s automotive market continues to grow, both in terms of vehicle production and sales, the demand for locally produced spare parts and accessories has also increased.
The production of spare parts and accessories in Vietnam includes a wide range of components such as engine parts, electrical systems, body parts, suspension components, and tires. These parts are essential for maintaining and repairing vehicles, and many are produced locally by both domestic and international companies. The industry also produces accessories such as car seats, mirrors, lighting systems, and air conditioning units.
Vietnam’s automotive industry is largely focused on assembly, with many international automotive brands like Toyota, Ford, Hyundai, and Honda operating in the country. As a result, there has been a strong focus on localizing the production of spare parts and accessories to reduce reliance on imports.
Vietnam is also increasingly becoming an important export hub for automotive spare parts and accessories, particularly to other Southeast Asian countries. The country’s strategic location, cost advantages, and growing manufacturing base have made it an attractive option for companies looking to establish supply chains within the region. This has led to a growing export market for spare parts, including engine components, electrical parts, and accessories for cars, motorcycles, and trucks.
However, the sector faces some challenges, including the need for more advanced manufacturing technologies and a skilled workforce to keep up with the demands of modern vehicle production. Additionally, competition from low-cost countries like China and Thailand poses a threat to the growth of local production, especially as the automotive industry moves toward higher levels of sophistication and innovation.
See also: Automotive Industry in Vietnam