New vehicle sales in Vietnam increased by 48% to 10,424 units in January, compared with a very depressed 7,043 units a year earlier, according to the Vietnam Automotive Manufacturers Association.

Compared with the previous month’s 12,845 units, sales fell by 17%. Vietnam’s economy continues to struggle with double digit inflation and currency depreciation. This makes vehicles a good hedge against inflation, however. 

Passenger car sales increased by 87% to 4,069 units, while SUV and MPV sales rose 92% to 2,774 units. By contrast, commercial vehicles sales were up by just 4% at 3,581 units.

Toyota continued to lead with 3,057 sales, up 38% year on year, with the Innova and Vios its two best-selling models. Truong Hai, which mostly assembles Kia vehicles, came second after sales volumes increased by 175% to 2,264 units.

Vinamotor, which makes commercial vehicles including the Hyundai Porter and vehicles sourced from China, came third despite a 19% drop in sales to 1,054 units. GM Daewoo came next with 1,000 units with the Cruze its best selling model.