Vietnam auto ownership triples in 13 years

The number of registered automobiles reached 6.31 million by the end of last year, it said in a recent report.

Last year 408,500 new vehicles were registered.

The ministry expects annual sales to top one million by 2030 and five million by 2045.

In 2022 record sales of 500,000 units propelled Vietnam into the list of the four largest auto markets in Southeast Asia along with Thailand, Indonesia and Malaysia.

The ministry wants at least 80% of autos to be green by 2045 and the same ratio for domestic production.

Now around 40% are imported as completely-built units, according to the Vietnam Automobile Manufacturers Association.

The ministry wants supporting industries to manufacture key auto components such as transmissions, gearboxes, engines, and bodies.

For now local firms are labor intensive and only capable of producing simple parts, it admitted.

Thailand has 710 tier-one and 1,700 tier-two suppliers, while the comparable numbers for Vietnam are only 33 and 200.

“To make good cars, we need quality materials for manufacturing as well as strong capabilities in robotics and quality control,” the ministry added.