Vietnam Vehicle Market Surges 50% in November

The Vietnamese vehicle market witnessed a remarkable surge in November 2024, with sales jumping 50% year-on-year. This growth can be attributed to several factors, including the lifting of COVID-19 lockdown restrictions, improving economic conditions, and a shift in consumer preferences towards electric vehicles (EVs). The pandemic has accelerated the demand for EVs, with the government implementing measures such as tax rebates and investment in EV infrastructure to support their adoption. As a result, Vietnam is forecasted to reach one million EVs on the road by 2028. Additionally, the introduction of VinFast, Vietnam's first automobile maker specializing in electric vehicles, has transformed the automotive industry landscape. The company's efforts to introduce made-in-Vietnam electric cars to the global market have further boosted the EV market's growth.



The Vietnamese government's EV policies and incentives significantly contributed to the November surge in the vehicle market. The government implemented tax rebates, invested in EV infrastructure, and supported local manufacturers, leading to a forecasted one million EVs on the road by 2028. Additionally, the introduction of VinFast, Vietnam's first automobile maker specializing in electric vehicles, transformed the automotive industry and boosted EV adoption. These initiatives, combined with the growing middle class and increasing purchasing power, drove the 50% jump in the vehicle market in November.



The Vietnamese vehicle market benefited from the positive economic environment, growing for the fifth month in a row in August 2024 and posting 27,227 new sales (+10.1%). YTD figures at 209,754 were up 4.7% compared to the prior year. Looking at cumulative data up to August 2024 brand-wise, Vinfast -up 7 spots- secured leadership with 33,683 sales (+86.3%), in front of T1. The introduction of new electric vehicle models, such as VinFast, played a significant role in Vietnam's vehicle market growth. VinFast, Vietnam's first domestic EV manufacturer, launched its first models in 2021, contributing to the market's expansion. In 2022, VinFast's sales surged by 86.3% year-on-year, securing leadership in the market with 33,683 sales. This growth was driven by the increasing demand for EVs, supported by government incentives such as tax rebates and investment in EV infrastructure. VinFast's success has also encouraged traditional manufacturers to invest in EVs, further boosting the market's growth.

In conclusion, the Vietnamese vehicle market's resilience during the COVID-19 pandemic can be attributed to several government policies and initiatives. The government implemented measures to support the automotive industry, including tax rebates and investment in EV infrastructure, which helped boost EV consumption. The introduction of VinFast, Vietnam's first automobile maker specializing in electric vehicles, significantly transformed the automotive industry landscape. The government's focus on improving public EV charging infrastructure and providing subsidies and tax refunds to encourage EV adoption also contributed to the market's growth. These initiatives, combined with the government's efforts to enhance the middle class and young population's interest in fuel efficiency and environmental awareness, have driven the Vietnamese electric vehicle market for double-digit growth.