Vietnam’s car production for December 2024 is projected to be 47,000 units, with an estimated total of 388,500 units for the entire year, according to Vietnam’s General Office of Statistics. This reflects a year-on-year increase of 27 percent compared to 2023, showing robust growth in the automotive sector.
In November 2024, the country produced 52,400 units of cars, maintaining a strong output despite a slight decrease in December.
Vietnam’s car production industry has experienced significant growth in recent years, driven by increasing domestic demand, government support, and foreign direct investment. The industry includes both local manufacturers, such as VinFast, and international brands like Toyota, Honda, Ford, and Kia, which operate assembly plants in the country. Vietnam’s rising middle class, urbanisation, and improving infrastructure have boosted car ownership, making the country an emerging market for automobiles in Southeast Asia.
The government has implemented supportive policies to develop the domestic automotive industry, including tax incentives for locally assembled cars and initiatives to encourage investment in parts manufacturing. VinFast, Vietnam’s first major homegrown car manufacturer, has played a crucial role in advancing the industry by producing internal combustion engine vehicles and pioneering the shift to electric vehicles (EVs). The company’s growing focus on EVs aligns with global trends and Vietnam’s green growth strategy.
Despite its growth, Vietnam’s car production industry faces challenges, including reliance on imported components and intense competition from neighbouring countries with more established automotive sectors. However, ongoing investments in local supply chains, workforce training, and technology adoption are expected to strengthen the industry. With increasing production capacity and a focus on innovation, Vietnam’s car production industry is well-positioned to contribute significantly to the country’s industrialisation and economic growth.
See also: Automotive Industry in Vietnam