Vietnam’s auto industry makes global waves with remarkable turnaround

Once a minor player in the global automotive landscape, Vietnam’s automobile industry has undergone a dramatic transformation, with manufacturers like Thaco, Hyundai Thanh Cong, and VinFast making significant strides in global markets.

Their success stories are reshaping the industry’s position while opening up new opportunities for development amidst fierce global competition.

Hyundai Thanh Cong conquers ASEAN market

Hyundai Thanh Cong Vietnam (HTV), a joint venture between Vietnam’s Thanh Cong Group and South Korea’s Hyundai Motor, exported the first batch of Hyundai Palisade cars to Thailand in October 2024, marking the first time Vietnam has shipped passenger vehicles to the country long considered as Southeast Asia’s automotive manufacturing hub.

The Palisade, manufactured in Ninh Binh province, boasts over 40% local content, qualifying for zero-tariff benefits under the ASEAN Free Trade Agreement (AFTA).

Chairman of Thanh Cong Group Nguyen Anh Tuan said the exportation of Hyundai vehicles not only validates the quality of products made in Vietnam but also elevates Vietnamese brands in the regional landscape. The company’s success is a vivid demonstration for capitalising on free trade pacts to improve competitive edge.

Beyond Thailand, the company is now setting its sights on expanding to Indonesia, the Philippines, and Myanmar, while developing new B-SUV and D-SUV models tailored for ASEAN consumers.

Thaco reaches the world with local content

Truong Hai Automobile Joint Stock Company (Thaco) has established itself as a pioneer in bringing "Made in Vietnam" vehicles to the global stage. In 2020, it exported over 1,400 trucks and buses, along with thousands of tons of components to Japan, South Korea and Thailand. Three years later, the company sold more than 2,000 trucks and buses to such demanding markets as Japan, South Korea, the Middle East, and Thailand, earning millions of USD.

Their 2024 achievements include exporting luxury sleeper buses to the Philippines and Kia New Carnival body parts to India, generating $12.6 million in revenue.

Thaco has also invested big in its Chu Lai auto complex in Quang Nam province - a modern production center that meets domestic consumption demand while creating products satisfying global standards, helping reduce reliance on imported components.

VinFast leads Vietnam's electric vehicle revolution

VinFast has emerged as Vietnam's flagship electric vehicle manufacturer on the international stage. Since its debut at the 2018 Paris Motor Show, the company has rapidly expanded its presence, exporting thousands of VF 8 and VF 9 cars to the U.S., Canada, and Europe, which have the world's most stringent technical standards.

The year 2024 marked a turning point as the firm moved to build a comprehensive ecosystem, from battery production to charging station development and expansion of its international office network, Following the start of work on its first overseas factory – in the U.S. – in July 2023, VinFast launched the construction of a plant in India in February 2024 and another in Indonesia five months later, aiming to improve its manufacturing capacity to better meet demand in key markets.

Along with advanced technology, VinFast remains committed to sustainable development, pledging to reduce greenhouse gas emissions and invest in renewable energy solutions. This has improved the firm’s prestige while affirming Vietnam’s pioneering role in the global electric vehicle revolution.

Auto industry builds on solid foundation

Despite notable achievements, Vietnam's automotive industry faces ongoing challenges, including high production and logistics costs, as well as strong competition with other countries. However, the Government’s support through preferential policies and infrastructure investments, coupled with free trade agreements, has created favourable conditions for auto firms to grow further.

Notably, such deals as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU – Vietnam Free Trade Agreement (EVFTA) have significantly reduced import tariffs and enhanced the competitiveness of the exports, providing crucial leverage for companies like Hyundai Thanh Cong, Thaco, and VinFast to expand their operations and strengthen their market positions.

The industry's remarkable turnaround represents more than just economic value as it stands as an inspiration, showcasing Vietnamese people's ambition and innovation. The success of the companies demonstrates exceptional progress while paving the way for a bright future in domestic automobile manufacturing.

Deputy Minister of Industry and Trade Truong Thanh Hoai said that the export has affirmed the quality of "Made in Vietnam" vehicles, which now meet stringent international standards. This creates a solid foundation for Vietnamese automotive products to access more demanding markets while maximising benefits from the signed free trade agreements.

The Ministry of Industry and Trade will continue to accompany enterprises on the industry's development journey, he added.