Vietnam Automobile Market is expected to grow in strength over time

Source: BMI, VAMC
- Commercial vehicles: These include trucks and buses for the transport of people and goods
- Passenger cars: 4-9 seats

  • In 2016, only 26/1000 Vietnamese own cars while the countries in the region are 80-140 cars / 1000 people.
  • Viet Nam has a low car ownership ratio with the potential for medium to high income growth (which is projected to increase from USD1,623 in 2015 to USD3,400 by 2020).
  • The BMI forecasts that investment in transport infrastructure in Vietnam will grow at a CAGR of between 2016 and 2019, about 10%, reaching $ 0.4 billion at the end of 2019.
  • According to the tariff reduction schedule under the ASEAN Trade in Goods Agreement (ATIGA), from 2018, CBU tariffs from South East Asian countries will be reduced to 0%
  • The strong impact of the commitments to open the automobile market and automobile sales will grow sharply in the coming time, leading to the demand for repair, maintenance and spare parts.

Cars market share in Vietnam in 2016

Total: 271,833 units
(*) THACO distributes vehicles of Kia, Mazda, Peugeot, trucks

  • In 2016, total car sales in Vietnam reached 271,833 units, up 30.3% compared with 2015.
    Toyota Vietnam has been operating the Toyota Automobile Parts Export Center since 2004 with the factory area of 7,000 m2 in Vinh Phuc.
  • Starting from 2017, the tariff on car imports from ASEAN has fallen to 30% and will fall to 0% from 2018; Thus, the price of passenger cars under 9 seats less than 1.5L capacity as Yaris may reduce prices, stimulate the needs of customers, enabling Toyota to increase market share in Vietnam