In recent years, the automotive industry in Vietnam has changed significantly through electrification, digitalisation, technological advancements, and the adoption of AI. Industrial practices have also transformed in light of these advancements and greater focus on environmental sustainability. As a result, new business strategies are emerging as customer expectations and day-to-day lifestyle choices shift.
For example, the automotive aftermarket is expected to grow as the demand for cars in Vietnam is forecast to proliferate rapidly with the upwards mark of 900,000 cars being added to roads each year by 2025, increasing to an annual increment of approximately 1.8 million vehicles from 2025 to 2030. Vinfast, the leading EV manufacturer in Vietnam, will continue to collaborate with Renesas Electronics to develop automotive technologies and system components. The car manufacturer will have access to AI-driven chip verification and debugging tools. Vinfast’s expertise in powertrain, chassis, body, and infotainment, as well as emerging technologies like ADAS, autonomous driving, EVs, and in-car networking, will undoubtedly contribute to the advancement of Vietnam’s automotive industry.
Favourable policies and an increased demand for replacement parts are driving Vietnam’s growing aftermarket. The Government aims to further increase localisation rates in the auto industry to 60% by 2025 to become a regional hub for vehicle production and exports.
Vietnam has become a hub for nurturing tech talent, attracting significant foreign investment in advanced technology. This emphasis has been instrumental in supporting the Government’s vision to increase the digital economy’s GDP contribution to 30% by 2030, along with a target of 7.5% annual labor productivity growth. Samsung Innovation Campus 2023 – 2024 officially started in October 2023 by Samsung Vietnam with the goal of developing high-tech skills in the Vietnamese youth who will drive the success of the 4.0 Industrial Revolution in Vietnam.
Sources:
1. “What’s Driving Increasing Car Imports in Vietnam?” VIETNAM BRIEFING, 18 April 2023, https://qr.messefrankfurt.com/7657b (Retrieved: October 2023)
2. “Driving Forward: The Growth and Future of Vietnam’s Automobile Industry in 2023”, Linkedin, 9 March 2023, https://qr.messefrankfurt.com/Q3c04 (Retrieved: October 2023)
3. “Vietnam - A Hub of Nurturing Tech Talent”, HANOI TIMES, 7 September 2023, https://qr.messefrankfurt.com/P51d0 (Retrieved: October 2023)
4. “Vietnam GDP growth improves in third quarter of 2023”, S&P Global, 5 October 2023, https://qr.messefrankfurt.com/A6488 (Retrieved: October 2023)
5. “Target set to raise proportion of manufacturing technology in GDP to 30% by 2030”, VietNamNet Global, 30 January 2023, https://qr.messefrankfurt.com/n8e32 (Retrieved: October, 2023)
6. “Driving Forward: The Growth and Future of Vietnam’s Automobile Industry in 2023”, Linkedin, 9 March 2023, https://qr.messefrankfurt.com/c7582 (Retrieved: October 2023)
