Vietnam’s motor vehicle manufacturing sector declined by 4.8 percent in December 2024 compared to November 2024, according to Vietnam’s Industrial Production Index. However, year-on-year, the sector posted growth of 37.8 percent in December 2024 compared to December 2023. For the full year, cumulative growth reached 21.1 percent in 2024 compared to 2023, highlighting exceptional performance despite the year-end dip.

The monthly decline could be attributed to seasonal adjustments or temporary supply chain disruptions. However, the remarkable year-on-year and annual growth underline Vietnam’s expanding role in vehicle manufacturing, driven by increasing domestic demand and growing export opportunities, particularly in the electric vehicle (EV) segment.

The motor vehicle industry in Vietnam has seen significant investments, particularly from domestic manufacturers like VinFast, alongside global automotive companies establishing production bases in the country. The sector’s growth is further supported by government incentives aimed at boosting EV production and localisation efforts.

The robust annual growth in 2024 demonstrates the sector’s critical role in Vietnam’s industrial landscape and its growing importance in the global automotive supply chain.

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