Vietnam's car industry to diversify supply chain

Vietnamese enterprises continue to diversify their auto parts and components sources, importing from a wide range of countries, including China, South Korea, Thailand, Japan, Indonesia and India.

While China remains a significant supplier, recent trade data highlights Vietnam’s efforts to diversify supply sources to meet industry demands.

According to statistics from Vietnam Customs, the country imported $479 million worth of car parts in December 2024, marking a slight increase of 1% month-on-month. China remained the largest supplier, accounting for $170 million of the total, reflecting a 16.9% increase.

However, other key markets also played crucial roles. South Korea supplied $91.5 million worth of parts despite experiencing a 22.1% decline, while Thailand contributed $68 million, up 14.1%. Japan's exports to Vietnam reached $52 million, growing by 6.1%. Indonesia and India supplied $35.7 million and $35.5 million, respectively, showing mixed trends.

For the year 2024, Vietnam’s total car parts imports reached $4.86 billion, representing an 18.3% increase compared to 2023. This upward trend indicates the country's sustained demand for automotive components from a diverse range of suppliers.

In parallel, Vietnam’s import of completely built-up (CBU) automobiles also showed dynamic shifts. In December 2024, Vietnam imported 12,881 CBU units valued at $303.6 million, a sharp decline of 27.9% from the previous month’s 17,855 units. Three primary markets – Thailand, Indonesia, and China – continued to dominate CBU imports, collectively accounting for 94% of the total. Specifically, Indonesia led with 5,685 units, followed by Thailand with 3,624 units and China with 2,783 units.

Focusing on passenger vehicles, Vietnam imported 10,477 cars with nine seats or fewer in December, making up 81.3% of all CBU imports. This category saw a 29.4% drop from November, with imports from Indonesia, Thailand and China declining by 22.7%, 30.5%, and 31.9%, respectively. Meanwhile, Vietnam imported only nine buses and 1,046 trucks, with the latter showing a 29.2% volume decline but a 5.2% increase in value compared to the previous month.

Despite December’s decline, overall CBU imports for 2024 surged to 173,561 units, marking a significant 45.8% increase year-on-year. Within this, cars with nine seats or fewer rose by 47.7% to 142,773 units, while truck imports increased by 4.4% to 15,008 units.

In addition to passenger and commercial vehicles, Vietnam also imported specialized vehicles. December 2024 saw 1,349 units enter the country, valued at $68.3 million. While this represented a 9.8% drop in volume, the value of these imports increased by 11.3% compared to November. China remained the dominant supplier, accounting for 87% of all specialized vehicle imports, though its shipment volume decreased by 18.7%.