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The Vietnamese car market in 2023: Facing numerous challenges

The car market in Vietnam has been developing strongly in recent years. With the economic growth, the demand for personal transportation has increased, leading to a growth in the number of cars sold. Foreign car manufacturers such as Toyota, Honda, Ford, Hyundai, and Vietnamese car manufacturers like VinFast are all present in the market and competing vigorously. The automobile market in Vietnam is attracting the attention of many foreign investors and is considered one of the potential markets in the Southeast Asia region.

After a period of being "suppressed" due to the impact of the Covid-19 pandemic, and with the potential of a densely populated market, the economy is in a period of growth and especially entering the phase of motorization as it moves into 2022. The car purchasing power in Vietnam is showing a strong recovery despite difficulties such as supply chain disruptions, component shortages, and economic fluctuations. Overall, the total sales volume across the market of member units of the Vietnam Automobile Manufacturers Association (VAMA) reached 404,635 units in 2022, a 33% increase compared to 2021. Specifically, there were 316,941 passenger cars sold, a 48% increase. As of the end of September 2023, the total sales volume across the market decreased by 22% compared to 2022, with a 32% decrease in passenger cars.

In the Vietnamese market, there are common ways to classify car models as follows:

Classification by body structure:

  • Sedan: A sedan is a small car with a design longer than a hatchback, equipped with an extended trunk, giving the rear of the car a longer and sleeker look.

  • Hatchback: A hatchback is usually a small or medium-sized car, suitable for individuals or families with additional luggage needs. It has a design where the rear of the car is not extended into a trunk like a sedan, but rather cut straight at the rear seats, creating a new door that can be folded down to create a large storage space.

  • SUV - Sports Utility Vehicle: SUV stands for Sport Utility Vehicle, which has a high ground clearance, a frame structure similar to a truck (body on frame), a boxy body, and a passenger compartment connected to the cargo area.

  • Crossover - Crossover Utility Vehicle: A crossover (or Crossover Utility Vehicle - CUV) is a hybrid between a true SUV and an urban vehicle (often sedans).

  • MPV - Multi-Purpose Vehicle: Minivan or MPV (Multi-Purpose Vehicle) is a type of vehicle commonly used for families, with the flexibility to switch between transporting people and cargo. MPVs usually have a higher ground clearance than sedans but lower than crossovers or SUV.

  • Coupe - Sports car: A coupe is defined as a car with two doors, two front seats (or with an additional two rear seats), a closed roof extending down to the tail, and a short rear. It is designed with a powerful engine and no B-pillar. When it comes to coupes, it's synonymous with sports cars and a bold design.

  • Convertible - convertible car: Convertible is a term that refers to coupes that have the ability to open the roof to become a "convertible" car, as in Vietnam, still true to the name "super car". This type of car can still be closed with a soft fabric roof or a hard roof that can be folded when the trunk is opened. In Europe, the term Cabriolet is used.

  • Pickup - pickup truck: Pickup trucks are not classified as "cars" in the US market. They refer to trucks that are not inclined to carry passengers like sedans, hatchbacks, or crossovers.

  • Limousine - luxury car: Limousines are often considered a high-end type of car, separated between the passenger seats and the driver's seat, often designed with a long body and a large distance between the wheels. And of course, limousines have luxurious interiors, spacious and super beautiful.

Classification by car segment: This method is based on European standards, classifying cars based on length, size, and price from low to high. In Vietnam, we often refer to the segmentation of car segments such as B-segment, C-segment, etc. when introducing or evaluating a certain car model, however, the difference between segments is not clearly defined and there is no accurate definition for each segment. Overall, we have a way of classifying car segments using alphabetical symbols as follows:

  • A-segment (Daewoo Matiz, Kia Morning, ...)

  • B-segment (Ford Fiesta, Hyundai i20, Toyota Yaris, ...)

  • C-segment (Ford Focus, Honda Civic, Kia Forte, Chevrolet Cruze, ...)

  • D-segment (Ford Mondeo, Toyota Camry, Honda Accord, ...)

  • E-segment (Mercedes E-Class, BMW Serie 5, Audi A6, ...)

  • F-segment (Mercedes S-Class, BMW Serie 7, Audi A8, ...)

  • S-segment (Porsche Panamera, ...)

Based on this classification, Vietdata has divided the Vietnamese car market into two main groups: Common group: Including A, B, C, D segments; High-end group: Including the remaining segments.

Common group:


Established in 1996, Honda Vietnam is a joint venture between Honda Motor Company (Japan), Asian Honda Motor Company (Thailand), and Vietnam Engine and Agricultural Machinery Corporation, with two main product lines: motorcycles and automobiles. In March 2005, Honda Vietnam officially obtained a license from the Ministry of Planning and Investment to manufacture and assemble automobiles in Vietnam. In 2022, Honda Vietnam sold over 30,000 various types of cars, a 41.2% increase compared to the previous year. The focus was on the Honda Civic in the C-segment sedan and the Honda CR-V in the C-segment CUV. In the motorcycle business sector, Honda Vietnam achieved remarkable sales growth in 2022, with a total of 2,407,907 units sold, a 20.9% increase compared to 2021.

The gross revenue of Honda Vietnam has been continuously growing, hovering around 100 trillion VND from 2020 to 2022. The after-tax profit has fluctuated over the years, reaching approximately 15 trillion VND in 2020, decreasing by nearly 4% in 2021, and increasing by over 30% in 2022.

Thaco Auto

Thaco Auto Co., Ltd. was established on December 17, 2020, under the umbrella of THACO, operating in the fields of import, manufacturing, assembly, distribution, retail, and repair services for automobiles and motorcycles. It is the official primary importer of brands such as Kia, Mazda, Mini, Peugeot, and BMW to Vietnam. In the past year, Thaco Auto sold over 100,000 automobiles, with Kia accounting for over 60,000 units and Thaco over 35,000 units. Notably, the Kia K3 and Mazda 3, both belonging to the C-segment sedan, were the best-selling models.

Thaco's gross revenue remained around 45 trillion VND for two consecutive years, with a significant increase of nearly 80% in 2022. The after-tax profit for 2020-2021 was similar, at nearly 2 trillion VND, and surged by over 80% in 2022.

* Net revenue chart of automobile brands from 2020 to 2022:


Toyota is a brand under Toyota Vietnam, specializing in car production, established in 1995 with up to 1,500 employees. Toyota provides a variety of car models, but mainly focuses on Sedans. As of the end of 2022, the brand has achieved the top position by selling nearly 100,000 vehicles. The Toyota Vios B-segment sedan continues to maintain its position as the best-selling model of the year with sales of 20,765 units.

The company's net revenue has continuously increased for 2 years. In 2020, it reached about 30,000 billion VND, increased by over 10% in 2021, and increased by over 20% in 2022. In terms of after-tax profit, there is no significant fluctuation, hovering around 3,500 billion VND. Among which, the Hyundai Accent B-segment sedan is the best-selling model of the company in 2022 with a total of 22,645 units.


On March 19, 2021, Thanh Cong Group and Hyundai Motor Group officially established a joint venture to distribute Hyundai passenger cars in the Vietnamese market under the name Hyundai Thanh Cong Vietnam Joint Stock Company (HTV). In 2022, the company has launched nearly 70,000 vehicles in the Vietnamese market.

In 2021, the brand recorded a net revenue of about 30,000 billion VND, and increased by nearly 50% in 2022. After-tax profit also increased similarly. Specifically, in 2021, the profit was about 2,000 billion VND, and increased significantly by nearly 80% in 2022. Currently, Vietdata has not recorded information on net revenue and after-tax profit in 2020.


Vietnam now also has a brand for car production that has been recognized by many countries around the world, represented by the United States. The car brand named Vinfast, belonging to Vingroup Corporation, has entered the automobile market. Established in June 2017, Vinfast operates in both gasoline and electric vehicle sectors. On July 15, 2022, VinFast Trading and Service Company officially announced the cessation of gasoline car business. On November 25, 2022, VinFast exported electric cars to the world at MCP Port - Dinh Vu Economic Zone - Cat Hai. VF8 and VF9 are two electric car models in the high-end E-segment, SUV line. In the past year 2022, Vinfast sold nearly 23,000 units and held the 8th position in the list of best-selling cars in Vietnam. The company's shares were also listed on the Nasdaq stock exchange in August 2023.

The company's total revenue in 2020 reached nearly 13,000 billion VND, and from 2021 to 2022, it recorded around 16,000 billion VND. Regarding after-tax profits, the company incurred continuous losses for 3 consecutive years. Specifically, in 2020, it was about 20,000 billion VND, increased to over 30,000 billion VND in 2021, and in 2022, the loss was nearly 50,000 billion VND.


Established in 1995, under Ford Vietnam LLC, a joint venture between Ford Motor Company based in Michigan, USA (75%) and Sông Công Diesel Company (25%). This is also the first American brand to invest in Vietnam since the normalization of diplomatic relations between the two countries. Ford focuses on 2 main vehicle lines: SUVs and pickup trucks. In 2022, the company sold approximately 30,000 units in the Vietnamese market. The main focus is still on the Ford Ranger D-class pickup truck with over 16,000 units, a 5% increase compared to 2021.

From 2020 to 2022, the company's gross revenue fluctuated around 15,000 billion VND. However, after-tax profits showed an increasing trend. In 2020, the loss was over 150 billion VND, increased by over 250% in 2021, and continued to increase by over 300% in 2022.


In 1996, Suzuki officially entered Vietnam and is owned by Vietnam Suzuki Co., Ltd. The company focuses on the B-segment SUV line, such as the XL7. In 2022, the company sold over 16,000 vehicles and ranked 9th in the sales chart.

Suzuki's revenue has remained relatively stable, reaching about 6,000 billion VND. However, the profit has decreased somewhat, with over 550 billion VND in 2020, dropping by nearly 7% in 2021, and a further decrease of over 15% in 2022.


As a brand under Isuzu Vietnam Co., Ltd. After nearly 30 years of operation in the Vietnamese market, Isuzu focuses mainly on the pickup and SUV segments. The company has also entered the top 10 best-selling car brands in Vietnam, with over 10,000 vehicles sold.

The company's gross revenue has been continuously increasing. Specifically, it reached about 5,000 billion VND in 2020, rose by nearly 7% in 2021, and over 30% in 2022. The after-tax profit also saw significant growth, with an increase of over 30% in 2021 and a remarkable rise of nearly 150% in 2022.


Established in 1994 as a distributor of Mitsubishi Motors - Mitsubishi Motors Vietnam Co., Ltd. is one of the first joint venture companies to produce cars in Vietnam. The brand has focused heavily on the MPV segment and has sold nearly 40,000 vehicles, ranking 4th in the best-selling car brands in Vietnam in 2022. Among them, the Mitsubishi Xpander, belonging to the B-segment MPV, is the most popular model with sales of 21,983 units.

Gross revenue in 2021 saw remarkable growth, reaching nearly 500%. This growth trend continued into 2022, with revenue reaching about 15,000 billion VND. After-tax profit was only slightly over 50 billion VND in 2020, but similarly to gross revenue, it saw a remarkable increase of over 1000% in 2021, and maintained a substantial growth of nearly 70% in 2022.


Motor Image Vietnam (MIV), a subsidiary of Tan Chong International Limited, is the exclusive importer and distributor of Subaru vehicles and services in Vietnam since its establishment in 2008. The company distributes two main vehicle models in the Vietnamese market, namely SUV and sedan, with the Subaru Forester SUV being a prominent example.

The Japanese automaker's revenue has been continuously fluctuating. Specifically, it reached about VND 1,500 billion in 2020, decreased by over 50% in 2021, and increased by over 100% in 2022. The profit also fluctuates similarly to the revenue, with the bright spot being no recorded losses. In 2020, the profit was nearly VND 40 billion, decreased by over 30% in 2021, and increased by almost 200% in 2022.


Trend Motor Vietnam Co., Ltd. is the authorized distributor of Volkswagen in Vietnam, focusing on luxury SUV models. The company's sales volume in the Vietnamese market has decreased by nearly 7% compared to 2021.

The company's revenue has remained stable at around 900 billion VND in 2020 and 2021, with a significant increase of almost 100% in 2022. The net income has also increased. While it incurred losses of about 70 billion VND in 2020, it achieved a profit of over 25 billion VND in 2021 and a growth of over 100% in 2022.

High-end group:


The brand was established in Vietnam in 1995 and is under the management of Mercedes-Benz Vietnam Company Limited (MBV). It is one of the luxury brands focusing on main lines such as Sedan, E-Class SUV, and F-Class. In 2022, MBV sold over 7,500 vehicles (a record high), with nearly half of them being the GLC-SUV F-Class.

The net revenue was maintained at around 10,000 billion VND from 2020 to 2021, and it increased by nearly 30% in 2022. However, the after-tax profit showed fluctuations. Specifically, it reached nearly 1,000 billion in 2020, increased by nearly 30% in 2021, and decreased by over 10% in 2022.

* Chart of after-tax profits of car manufacturers from 2020 to 2022:


Porsche is a brand officially imported by The Ultimate Cars Company established since 2007. With prices starting from 4 billion VND, it can be said that this is a luxury brand of coupe cars in the Vietnamese automotive market. In the past year 2022, the company has sold over 10,000 units in Vietnam.

Porsche has maintained a stable revenue growth. In 2021, it reached around 1,000 billion VND, continuously increasing by nearly 60% in 2021 and 2022. However, the after-tax profit has fluctuated significantly. Specifically, it made a profit of 14 billion VND in 2020, then incurred a loss of over 60 billion VND in 2021, and a profit of over 200% in 2022.


Established in Vietnam for over 6 years, the Swedish car brand is under the company Sweden Auto LLC. In 2022, Volvo Car Vietnam has sold over 1,600 units in the market, recording a growth of more than one and a half times compared to 2021. The XC60, a luxury SUV, is a notable model.

The brand's net revenue has increased from 2020 to 2022. In 2020, it reached around 1,000 billion VND, then increased by nearly 80% in 2021 and nearly 90% in 2022. After-tax profit reached around 35 billion VND in 2020, increased by nearly 150% in 2021, and stood out in 2022 with an increase of over 200%.

According to Decree No. 41/2023/NĐ-CP, from July 1, 2023, domestically assembled and manufactured cars will receive a 50% reduction in registration fees. This will help businesses reduce promotional costs and offset losses. However, according to assessments from car manufacturers, the Vietnamese car market, although recovering, may face difficulties in the final period of 2023. The reason is that the Vietnamese economy is forecasted to have low growth, leading to a significant decrease in demand, especially for luxury items such as cars and jewelry. In addition, many car companies have increased production to serve the market in 2023 after a prosperous period in 2022. Typically, it takes at least 6 months for car companies and distributors to adjust orders with partners. When the economic situation is not favorable, car companies cannot immediately cut orders in the short term. This creates a difficult period for both domestically assembled and imported cars, as companies must compete fiercely, even selling at cost or cutting losses to gain market share.

Source: Vietdata's 2022 market report on the situation of car manufacturers in Vietnam.


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