What cars are Vietnamese driving?
Although Vietnam has a notoriously high import tax for automotive vehicles, imported cars are widely popular due to the limited capacity and capability of the domestic sector. Indeed, the production of assembled automobiles by local manufacturers depends heavily on the imports of advanced parts. Hence, locally-produced cars often do not have competitive pricing compared to their foreign counterparts. Additionally, the volume of automobiles produced in Vietnam has been fluctuating in the past decade and remains modest, accounting for roughly ten percent of the market share.Correspondingly, Vietnam’s automobile market has been dominated by foreign brands, especially Japanese and Korean manufacturers, due to their affordable price tags and low maintenance costs. The most popular car makers of choice among Vietnamese consumers were Nissan and Toyota, holding over 20 percent of the market share each in 2021. With that said, it is not rare to spot a German automobile on the streets of Vietnam. Often seen as a symbol of luxury and prestige, European car brands have also won over a niche segment of affluent Vietnamese consumers.
