Automotive industry in Vietnam
Automotive industry in Vietnam is a fast growing sector, mainly reliant on domestic sales. All currently produced models are designed abroad by foreign brands, and many rely on knock-down kit production. Due to high import taxes on automobiles, the Vietnamese government protects domestic manufacturing. Although Vietnam is a member of the ASEAN Free Trade Area, automobile imports fall under an exception. Since January 1 2018, the 30% import tax has been discontinued as part of ASEAN agreements. Currently, the Vietnamese motor industry is not deemed competitive enough to make exports feasible. As of April 2018, 85% of car sales in Vietnam were produced domestically from CKD kits.
Before the Đổi Mới, automobile ownership in Vietnam was very limited and the vehicles present were imported from Second World countries that were more politically aligned with the government. In 1995 the first automobile factories were built, using knock-down kits to produce vehicles, starting with Mitsubishi, Toyota and Isuzu. Between 2003 and 2006, automobile sales tax was increased from 5% to 50%, thus slowing down car sales.
Most automobile manufacturers in Vietnam are a member of the (non-governmental) Vietnam Automobile Manufacturers' Association (VAMA).
- 1 Auto parts
- 2 Foreign brands
- 3 Licensed production
- 4 Domestic brands
- 5 Former domestic brands
- 6 See also
- 7 References
- 8 External link
Vietnam has a 900 million USD trade surplus in car parts, totaling 4.4 billion USD of car part exports. Most of this production is by foreign owned businesses operating in Vietnam. In total the number of parts suppliers was 226 in 2018.
Honda Vietnam is a joint venture of Honda and the Vietnam Engine and Agricultural Machinery Corporation (VEAM). It is the top selling motorcycle brand in Vietnam, and operates three motorcycle factories and one car factory in Vietnam.
Hyundai models are manufactured from CKD kits by Hyundai Thanh Cong Auto, a joint venture between Hyundai and Vietnam's Thanh Cong Auto. Hyundai reportedly strongly considered building a manufacturing plant in Ninh Binh, to produce the Grand i10 model.
Since 2008, Kia Motors vehicles are produced from CKD kits by THACO Kia, a joint venture with THACO, at a plant in Chu Lai. Models produced are the Kia New Morning, Kia Forte, Kia Sorento, Kia Carens, Kia Cerato, Kia Optima.
Through its joint venture with THACO, Vina Mazda Automobile Manufacturing, Mazda 2 models are produced at a plant in Nui Thanh. The plant has a production capacity of 10,000 vehicles per year and employs 300 workers.
Mitsubishi Motors is active in Vietnam through its Vina Star Motors Corporation joint venture with Malaysian PROTON Holdings. In 1997 production of Mitsubishi vehicles was started with the Mitsubishi Delica van, with other vehicles being the Mitsubshi Pajero and Mitsubishi Canter.
Suzuki builds cars in Vietnam through its Visuco subsidiary, operating in a factory in Bien Hoa, Dong Nai Province. The factory produces the Super Carry, Ertiga, Grand Vitara, Vitara and Swift, as well as the Impulse 125 Fi, Hayate 125, UA125-T, Viva 115 Fi, Raider 150 and Axelo 125 motorbikes. Annual production is 6000 motor vehicles and 100,000 motorbikes.
Toyota Motor Vietnam uses CKD kits to produce vehicles for the domestic market. Vehicles produced are the Corolla Altis, Vios, Fortuner (CKD production discontinued in 2018) and Innova. It produced 41,000 vehicles in 2017. Toyota holds the highest market share among passenger vehicle sales in Vietnam, at 23%.
SAMCO produces Hyundai buses under licence.
VinFast is the only domestic passenger vehicle brand in Vietnam. In August 2018, General Motors sold its Vietnam operations to Vinfast, granting the latter distribution rights of GM models in Vietnam, and transferring its Hanoi plant to Vinfast. Vinfast will use the plant to produce its own developed vehicles, in addition to the already planned plant in Haiphong. The CEO of Vinfast is former GM executive Jim DeLuca.
Former domestic brands
Vinaxuki produced light commercial vehicles.
- Transport in Vietnam
- Automotive industry
- Automotive industry by country
- List of Asian automobile manufacturers
- List of countries by motor vehicle production
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- COFICO | Visuco Automobile Factory
- Việt Nam Suzuki
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- Media related to Automobiles in Vietnam at Wikimedia Commons