Vietnam’s new vehicle market declined by 6% to 15,676 units in January 2025 from 16,697 units a year earlier, according to wholesale data released by the Vietnam Automotive Manufacturers Association (VAMA). The data do not include sales by Mercedes-Benz, Hyundai, Tesla, Nissan, domestic automaker VinFast, and a growing number of Chinese brands that have entered the market in the last two years.
VAMA’s members reported a more moderate year-on-year sales decline last month, after volumes plunged by 25% to 27,403 in December following the expiry of a temporary 50% vehicle registration tax discount at the end of November 2024. Sales in January were also affected by the Lunar New Year holidays.
Economic growth in the country remains strong, with fourth-quarter GDP growth at 7.5% according to government data, driven by strong domestic consumption, fixed investment and exports.
Sales of passenger vehicles fell by 11% to 11,057 units in January, while commercial vehicle deliveries increased by 7% to 4,619 units. Truong Hai (Thaco) Group, the local assembler and distributor of several overseas brands and a major player in the commercial vehicle segment, reported a 5% sales decline to 5,196 units. This includes a 22% drop in Kia sales to 1,846 units, while Mazda sales increased by 3% to 2,031 units and sales of Thaco commercial vehicles surged by 34% to 1,010 units.
Toyota’s sales jumped by 52% to 3,346 units last month, while Ford’s sales dropped by 22% to 2,452 units; Honda 1,826 units (-10%); and Mitsubishi 1,716 units (-4%).
Domestic automaker VinFast said it delivered more than 10,000 vehicles globally in January, with the VF3 and VF5 its best-selling models, while local distributor Tan Chong International said its sales of Hyundai-branded vehicles fell by 14% to 3,074 units.
From the end of February, battery electric vehicles (BEV) will no longer be exempt from the vehicle registration tax. These vehicles will still enjoy a 50% discount compared with conventional internal combustion engine (ICE) vehicles, amounting to around 5% of the total cost of the vehicle.
