Vietnam Boasts a Rapidly Growing Auto Market with Great Sales Potential
Vietnam has a population of about 95 million and a land area of 330,000 square kilometers. Since enforcing economic reforms and market liberalization in 1986, the country has enjoyed rapid economic development, scoring an average annual GDP growth of 6.3% over the past 12 years and per capita national income of US$2,300. This makes Vietnam the sixth largest economy of the ASEAN countries, next to the Philippines and surpassing Myanmar. Fueled by the growing economic prosperity, rising national income, trade liberalization and sharp reduction in import tariffs, new car sales in Vietnam already exceeded 300,000 units in 2016, showing a robust annual growth of 50%. Vietnam is one of the auto markets with the highest sales growth in the world, thus becoming a most-sought-after market for global automakers. Vietnam claims to have 56 auto plants. But there are only a little more than 10 brands operating large-sized plants, including Thaco (Kia, Mazda OEM), Toyota, Ford, Peugeot, Mercedes-Benz, GM, Mitsubishi, Honda, Isuzu, SAMCO, Vinamotor, Mekong (Fiat, Ssangyong, PMC OEM), VEAM, Suzuki, Hino, Dothanh, and TCIEV, among others. The remaining plants are operating on a small to medium scale.