Most well known for its Daewoo brand of vehicles, KGM Tata Daewoo Korea Group is looking to acquire about ten hectares of land for a factory in Vietnam’s Tuyen Quang province, according to its chairman, Ko Younghak.
Vietnam’s automotive industry is huge but dominated by motorcycles. That said, cars are becoming more popular with just shy of 5 million registered vehicles at the end of 2020. This does, however, represent just 5 percent of the population of 100 million people which means there is plenty of room for car sales to grow.
That said, there are a number of limitations and challenges facing the car industry in Vietnam. Congestion for one and a lack of parking space for another. In this context, exactly how big Vietnam’s car market can get may also be restricted beyond simply financial means.
See also: Vietnam’s Automotive Industry 2024: Foreign Investor Cheat Sheet