Vietnam's auto market is the fastest growing in Southeast Asia

Southeast Asia is a key market for many of the world's leading automobile manufacturers. Photo: Hoang Linh

According to Nikkei, the five largest car markets in Southeast Asia, including Indonesia, Malaysia, Thailand, Vietnam, and the Philippines, sold 732,898 cars in the first three months of this year, down 1.7% from the same period last year. However, the number of cars sold in Vietnam increased by 24%.

In April, the situation "recurred" when Vietnam consumed 29,585 cars, up 21% compared to the same period last year. This level is much higher than Indonesia (5%), Malaysia (4.4%), although these are the two largest automobile markets in ASEAN (consumed 51,205 cars and 65,200 cars respectively last month).

Experts say that the "lightning-fast" growth rate of the domestic automobile market is mainly due to the strong economic development. With a stable growth rate of gross domestic product (GDP) and an increasingly expanding middle class, the demand for personal car ownership in Vietnam is increasing, especially for small and medium-sized cars.

The Vietnamese government also supports the strong growth and development of the automotive industry through a series of policies and initiatives aimed at creating a favorable business environment for both domestic and foreign investors.

The strong growth of electric vehicles - led by VinFast - has also contributed significantly to the growth of the Vietnamese automobile market, accounting for about 20% of total new vehicle sales. In April 2025, the Vietnamese automaker announced that it had delivered an additional 9,588 electric vehicles in the domestic market, mainly VF 5 (3,731 vehicles).

Meanwhile, the markets of Thailand, Indonesia... are facing difficult economic conditions and tight credit policies, leading to a decline in purchasing power.

VinFast electric cars roll out in Indonesia. Photo: Hoang Linh

PwC forecasts that total light vehicle sales in ASEAN-6 (Indonesia, Malaysia, Philippines, Singapore, Thailand and Vietnam) will increase by about 2% in 2025. Of which, Vietnam, Philippines and Singapore continue to lead thanks to economic recovery and the launch of many new models.

According to PwC, the proportion of electric vehicles sold in ASEAN-6 will continue to increase this year. This figure has increased from 9% in 2023 to 13% in 2024, thanks to preferential policies of the government and increasing environmental awareness. PwC commented that Vietnam is making significant progress in this field, along with Malaysia, towards the goal of becoming a regional electric vehicle manufacturing hub by 2030.

However, opinions also point out that Chinese automakers are actively expanding their market share in ASEAN markets by providing advanced electric vehicle models at competitive prices, challenging the long-standing dominance of Japanese automakers while creating significant competitive pressure for local manufacturers.

In such a context, experts recommend that ASEAN auto businesses consider establishing strategic alliances and cooperating with partners inside and outside the region to take advantage of opportunities and respond to challenges in the industry.

At the same time, it is possible to consider optimizing operations and innovating business models to adapt to changes in consumer behavior and new technology trends.

Some assessments also say that, despite much progress, the Vietnamese auto industry is still heavily dependent on imported components, with a localization rate of only about 20%, and this needs to be improved.

Refer to data from PwC, Nikkei

Source: https://hanoimoi.vn/thi-truong-o-to-viet-nam-tang-truong-nhanh-nhat-dong-nam-a-702435.html