VIETNAM AUTOMOBILE INDUSTRY

The global automobile market in 2017 continued to grow with the total produced cars of 97.3 million units, an increase of 2.45% over 2016. The world’s automobile production workshops are still located in three traditional areas with the earliest automobile industry which are North America, Western Europe and East Asia.

Global automobile consumption in 2017 reached 96.8 million units, up 3.1% compared to 2016. Global automobile export in 2017 continued to sharply decline and plunged the most since 2012, when the total export value of automobile market was only $ 629.49 billion.

The automobile industry in Vietnam today is largely stopped at simple assembly. The average localization rate is around 10%. Almost all of domestic components are in the form of simple technology with low value and mainly used for trucks and passenger cars. The newly promulgated Decree 116/2017/ND-CP on Production, Assembly and Trading of Automobiles is expected to create new opportunities in the development of production activities of automobile companies right in Vietnam instead of yielding to imported cars. In the first 9 months of 2018, the total number of assembled cars nationwide reached 199.7 thousand vehicles, up 11.04% compared to the same period in 2017.

The market entry of VinFast is expected to boost the domestic automobile manufacturing, assembly industry and help increase the localization rate, reduce dependence on imported cars. According to the Vietnam Automobile Manufacturers Association (VAMA), in the first 9 months of 2018, the whole domestic automobile market achieved sales of 186.42 thousand vehicles (including trucks, passenger cars/ bus and some other vehicles), increased slightly by 1% compared to the same period in 2017.

In the first 9 months of 2018, we can see that the structure of vehicle consumption by region of Vietnam has not changed much compared to the end of 2017. In the first half of 2018, Truong Hai continued to hold the largest market share with 38.2% of the total number of cars consumed in the market. The car ownership rate of over 1,000 people in Vietnam in 2017 is estimated to reach 30 cars, which is still quite low compared to other countries in the region and the world. In addition to policy, political and exchange risks, the industry is facing many challenges in terms of capital, technology, human resources, supporting industries, government policies, infrastructure and environmental pollution.

Abbreviation
Executive summary
1. Business environment
1.1 Macroeconomics
1.2 Legal barrier
2. Industry overview
2.1 World automobile market
2.1.1 Spare parts
2.1.2 Production
2.1.3 Consumption
2.1.4 Import – export
2.1.5 Top typical countries
2.2 Vietnam automobile market
2.2.1 Scale and characteristics
2.2.2 Industry value chain
2.2.3 Industry position
2.2.4 Production
2.2.5 Consumption
2.2.6 Import
2.2.7 Automobile prices
3. Risks and Challenges
4. Driving forces
5. Planning and forecast
6. Enterprises
Truong Hai Auto
Toyota Vietnam
Lexus Vietnam
Ford Vietnam
Honda Vietnam
Mercedes – Benz Vietnam
Hino Motor Vietnam
Isuzu Vietnam
Hino Motors                                                                                                             GM Vietnam