Description
NEW! – Research Report on Vietnam Automobile Industry 2022-2031
Vietnam Automobile Industry
Topics covered:
-The impact of COVID-19 on the Vietnam Automobile industry
-Supply and demand of Vietnam automobile industry
-Major auto manufacturers in Vietnam
-Import and Export of automobiles in Vietnam
-Import and Export of automobiles in Vietnam by Section
-Competition status of Vietnam automobile market
-Drivers and opportunities of Vietnam automobile market
-Prospect of Vietnam auto industry
Overview
The growth rate of Vietnam’s GDP in 2020 was about 2.9%. Considering the spread of COVID-19 in 2020, the annual GDP growth rate of 2.9% is already a good figure in the world. Vietnam’s economy has been increasing rapidly for many years, but wages of the manufacturing are still at a low level, which were less than 50% in China and far below that of the developed countries in 2020.
Vietnam auto industry starts late, and the development base is weak. After the reform in 1986, Vietnam auto industry started. In 1991, Vietnam government introduce foreign funds to develop automobile manufacture and assemble industry. After 30-year development, Honda, Toyota, Ford, GM, etc. entered Vietnam through sole proprietorship or joint-investment.
They established automobile assemble enterprises in Vietnam. Meanwhile, Vietnam established domestic auto enterprises. According to CRI’s analysis, the production capacity of complete vehicles in Vietnam is estimated to over 250,000 per year by the end of 2020.
There are hundreds of auto part manufacture enterprises, most of which are SMEs featured with low production capacity and low technology. Major products are simple parts, e.g. seats, auto storage batteries.
According to CRI’s analysis, the annual sales of automobiles in Vietnam increased rapidly from 2015 to 2019, from 209,000 in 2015 to 306,000 in 2019, which is one of the fastest growing markets in the world.
In 2020, due to the impact of COVID-19, Vietnamese car sales have declined. Since Vietnam’s domestic automobile production is low and cannot meet the domestic market demand, it needs to import a certain number of automobiles every year. From 2015 to 2019, Vietnam’s annual automobile imports also show an overall upward trend.
However, due to the impact of the epidemic in 2020, Vietnamese automobiles the decline in sales has caused the same decline in car imports.
According to CRI’s forecast, as the COVID-19 epidemic has been well controlled in Vietnam, it is expected that the Vietnamese auto market will gradually recover from 2021.
Considering that the per capita car ownership in Vietnam is very low, Vietnam’s auto production and sales will be 2021-2025. And imports have a lot of room for growth.
According to CRI’s forecast, for auto parts manufacturers and vehicle manufacturers, the Vietnamese market has a lot of room for growth from 2021 to 2030.
With the economic development, the growth of income per capita and infrastructure construction, Vietnam market demands more for passenger vehicles and commercial vehicles. Vietnam auto manufacture enjoys low labor cost, land and energy cost but also faces imperfect auto industry chain.
Major auto manufacturers and companies in Vietnam profiled in this report include Honda Vietnam, Toyota Motor Vietnam, Ford Vietnam, GM Vietnam, Hino Motors Vietnam, Isuzu Vietnam, Mekong Auto Corporation, Mercedes-Benz Vietnam, Vietnam Motors Corp. (VMC) and Vina Star Motors Corp.
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