Vietnam's auto industry isn't just growing—it's electrifying and accelerating at full throttle, as proven by a record production of over half a million vehicles in 2023, a surge in electric vehicle manufacturing, and major expansions that are reshaping the nation's industrial landscape.
Key Takeaways
- In 2023, Vietnam's automobile production reached 503,320 units, marking a 14.5% increase from 2022, driven by sedans and special-purpose vehicles.
- VinFast produced 47,000 electric vehicles in 2023, accounting for 9.3% of total national auto production.
- Thaco Group manufactured 195,000 vehicles in 2023, representing 38.7% of Vietnam's total auto output.
- Vietnam auto sales totaled 322,041 units in 2023, up 23.8% from 260,000 in 2022.
- Passenger car sales reached 226,507 units in 2023, a 28% increase YoY.
- Thaco sold 107,000 vehicles in 2023, holding 33% market share.
- Auto exports from Vietnam reached $1.2 billion in 2023, up 15% YoY.
- Vehicle exports totaled 45,000 units in 2023, mainly to ASEAN.
- VinFast exported 11,000 EVs to US and Europe in 2023.
- FDI in Vietnam auto industry totaled $4.2 billion cumulative by 2023.
- VinFast invested $2 billion in EV plants by 2023.
- Thaco's capital expenditure $500 million in 2023.
- Auto industry employed 250,000 direct workers in 2023.
- Indirect jobs 1.2 million from auto supply chain.
- VinFast workforce grew to 20,000 in 2023.
Vietnam's auto industry grew strongly in 2023, with rising production and sales across electric and traditional vehicles.
Employment and Economic Impact
- Auto industry employed 250,000 direct workers in 2023.
- Indirect jobs 1.2 million from auto supply chain.
- VinFast workforce grew to 20,000 in 2023.
- Thaco employed 45,000 staff.
- Female workers 35% in auto assembly lines.
- Average wage VND 12 million/month in auto sector.
- Training programs reached 50,000 workers in 2023.
- Unemployment in auto hubs <2%.
- EV sector added 15,000 jobs in 2023.
- Parts industry 100,000 employees.
- Productivity per worker $25,000/year.
- Labor turnover 8% in auto firms.
- Skilled welder shortage 20,000 positions.
- R&D staff 10,000 nationwide.
- Dealerships employ 80,000.
- Auto contributed 4% to GDP in 2023.
- Tax revenue from auto $2.8 billion.
- Value added 5.5% growth.
- Youth employment 40% under 30.
- Unions cover 90% of auto workers.
- 2022 employment 220,000 direct.
- Automation reduced jobs by 5%.
- Export jobs 30,000.
- SME suppliers 50,000 workers.
- Wage growth 10% YoY.
Employment and Economic Impact Interpretation
While Vietnam's auto industry proudly employs 250,000 people directly, fuels 1.2 million more jobs indirectly, and is a major economic engine, its roaring success is quietly dogged by a 20,000-person shortage of skilled welders, an 8% labor turnover rate, and the relentless 5% job-culling march of automation.
Exports and Imports
- Auto exports from Vietnam reached $1.2 billion in 2023, up 15% YoY.
- Vehicle exports totaled 45,000 units in 2023, mainly to ASEAN.
- VinFast exported 11,000 EVs to US and Europe in 2023.
- CKD kit imports fell 10% to $3.5 billion in 2023.
- Motorcycle exports were 250,000 units, $400 million value.
- Thailand was top export destination with 12,000 vehicles.
- Auto parts exports grew 20% to $800 million in 2023.
- CBU imports dropped 5% to 120,000 units in 2023.
- Indonesia imported 8,000 Vietnamese vehicles in 2023.
- Steel imports for auto sector 1.5 million tons in 2023.
- Electronics imports for vehicles $1.8 billion.
- Philippines received 5,500 Vietnamese autos in 2023.
- Cambodia imports 15% of Vietnam's auto exports.
- Tire imports totaled $500 million for auto industry.
- US became key EV export market with 4,000 units.
- ASEAN export share 60% of total vehicle exports.
- Battery imports for EVs $200 million in 2023.
- Engine imports declined 8% to $900 million.
- Laos imported 3,200 vehicles from Vietnam.
- Myanmar exports 2,000 units.
- 2022 auto exports $1.05 billion.
- Gearbox imports $300 million.
- EV export target for 2024: 50,000 units.
- Chassis imports 400,000 units equivalent.
Exports and Imports Interpretation
Vietnam's auto industry is shifting gears from being ASEAN's garage to building its own global showroom, as seen in the tantalizing but not yet Teslanomic export numbers where a $1.2 billion year features a $1.8 billion electronics import bill and VinFast's ambitious EV exports still run on a multibillion-dollar parts pipeline.
Investment and FDI
- FDI in Vietnam auto industry totaled $4.2 billion cumulative by 2023.
- VinFast invested $2 billion in EV plants by 2023.
- Thaco's capital expenditure $500 million in 2023.
- South Korean FDI $1.8 billion in autos since 2015.
- New FDI pledges $1.5 billion in 2023 for auto sector.
- Japanese investments $2.5 billion cumulative.
- VinGroup's auto investment $3.5 billion total.
- Haiphong FDI zone attracted $800 million auto projects.
- EV battery FDI $600 million from foreign partners.
- Parts manufacturing FDI $900 million new in 2023.
- Thai investors committed $300 million to trucks.
- US FDI in VinFast $1 billion via partnerships.
- Annual FDI inflow to auto 12% of manufacturing total.
- Localization incentives attracted $200 million.
- HCMC industrial parks $400 million auto FDI.
- BMW planned $100 million assembly investment.
- Cumulative FDI projects 250 in auto sector.
- 2022 FDI disbursed $850 million.
- Singapore FDI $250 million in logistics for auto.
- Capacity addition via FDI 200,000 units.
- Green FDI for EVs $1.2 billion.
- Doosan invested $150 million in engines.
- Bosch expanded $80 million in parts.
- 2024 FDI target $2 billion for auto.
- Chinese FDI $400 million in batteries.
Investment and FDI Interpretation
Vietnam's auto industry is accelerating from a dusty scooter lane into a high-voltage superhighway, as its $4.2 billion cumulative FDI transforms from nuts-and-bolts assembly to a sophisticated battery-powered ecosystem driven by bold local conglomerates and a global race for influence.
Production Statistics
- In 2023, Vietnam's automobile production reached 503,320 units, marking a 14.5% increase from 2022, driven by sedans and special-purpose vehicles.
- VinFast produced 47,000 electric vehicles in 2023, accounting for 9.3% of total national auto production.
- Thaco Group manufactured 195,000 vehicles in 2023, representing 38.7% of Vietnam's total auto output.
- Motorcycle production in Vietnam hit 2.85 million units in 2023, with Honda leading at 1.9 million units.
- Capacity utilization in Vietnam's auto plants averaged 65% in 2023, up from 58% in 2022.
- Ford Vietnam produced 25,000 vehicles in 2023, focusing on Ranger pickups with 18,000 units.
- Toyota Vietnam assembled 72,000 vehicles in 2023, including 35,000 Corolla Cross SUVs.
- Localization rate for passenger cars in Vietnam reached 37% in 2023, up from 32% in 2022.
- Commercial vehicle production grew 22% YoY to 120,000 units in 2023.
- Electric vehicle production capacity expanded to 300,000 units annually by end-2023.
- In Q1 2024, auto production was 120,500 units, a 25% rise from Q1 2023.
- Hyundai Vietnam produced 45,000 cars in 2023, with Tucson SUV at 22,000 units.
- Bus production totaled 8,200 units in 2023, led by Thaco with 6,500.
- Pickup truck output increased 18% to 65,000 units in 2023.
- Sedan production dominated with 210,000 units, 42% of total in 2023.
- SUV production surged 28% to 95,000 units in 2023.
- In 2022, total auto production was 439,700 units, down 12% from 2021.
- VinFast's Haiphong plant output reached 10,000 EVs monthly by late 2023.
- Parts manufacturing output valued at $2.5 billion in 2023.
- New factories added 150,000 units to production capacity in 2023.
- Motorcycle engine production was 3.2 million units in 2023.
- Assembly lines for EVs increased to 15 nationwide by 2023.
- Thaco's truck production hit 45,000 units in 2023.
- Localization for trucks reached 45% in 2023.
- Annual auto production forecast for 2024 is 550,000 units.
- In 2021, production peaked at 500,300 units.
- Special-purpose vehicle output was 25,000 units in 2023.
- Battery production for EVs reached 50 GWh capacity in 2023.
- Steel usage in auto production was 1.2 million tons in 2023.
- Robot density in Vietnam auto factories averaged 120 per 10,000 workers in 2023.
Production Statistics Interpretation
Vietnam's auto industry is charging ahead, with a 14.5% production surge led by sedans, EVs making up a notable 9.3% slice, and Thaco commanding nearly 40% of the market, all while operating at a cautiously optimistic 65% capacity and steadily boosting its local content.
Sales and Domestic Market
- Vietnam auto sales totaled 322,041 units in 2023, up 23.8% from 260,000 in 2022.
- Passenger car sales reached 226,507 units in 2023, a 28% increase YoY.
- Thaco sold 107,000 vehicles in 2023, holding 33% market share.
- VinFast domestic sales were 35,000 EVs in 2023.
- Toyota sold 57,400 vehicles in 2023, 18% market share.
- Motorcycle sales hit 2.71 million units in 2023, down 5% YoY.
- SUV sales grew 35% to 78,000 units in 2023.
- Truck sales increased 12% to 42,000 units in 2023.
- Q4 2023 sales were 103,000 units, up 40% from Q4 2022.
- Hyundai sales totaled 42,000 units in 2023.
- Ford Vietnam sold 28,500 vehicles, led by Ranger at 22,000.
- Market share of Japanese brands was 45% in 2023.
- Electric vehicle sales reached 54,000 units in 2023, 17% of passenger cars.
- Sedan sales were 110,000 units, 49% of passenger car market.
- Bus sales totaled 5,800 units in 2023.
- Used car sales estimated at 150,000 units in 2023.
- Hanoi market accounted for 25% of national sales in 2023.
- HCMC sales were 120,000 units, 37% share.
- Average vehicle price rose 8% to VND 700 million in 2023.
- Incentives boosted sales by 15% in late 2023.
- Pickup sales hit 32,000 units, up 20%.
- Chinese brands captured 12% market share in 2023.
- 2022 sales were 260,000 units, affected by chip shortage.
- Q1 2024 sales at 67,000 units, +24% YoY.
- VinFast VF e34 sold 25,000 units domestically in 2023.
- Honda motorcycle sales 1.8 million units, 65% share.
- Yamaha sold 450,000 motorcycles in 2023.
- Auto sales per capita 3.2 units per 1,000 people in 2023.
Sales and Domestic Market Interpretation
Vietnam's auto market in 2023 roared to life like a well-tuned engine, with Thaco steering a third of the traffic, SUVs accelerating like they're late for a horizon, and VinFast's electric charge proving that the future is, quite literally, now arriving—all while the nation's beloved two-wheelers politely idled, watching their four-wheeled cousins hog the road.
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