Vietnam's Automobile Market Forecast for 2023

Vietnam's automobile sales in 2022 are expected to increase by about 22% year-on-year to around 500,000 units. Until 2019, Vietnam's automobile market had been expanding steadily due to its strong economic growth. In 2020 and 2021, there was a slight decrease due to social isolation measures triggered by the spread of COVID-19. Thanks to the 50% reduction in registration fees for CKD vehicles implemented from December 2021 to May 2022 and increased economic activity, it is certain that vehicle sales will reach a record high in 2022.

The 2023 market is expected to be around 480,000 units, down about 4% from the 2022 forecast. Although sales in 2023 are expected to decrease compared to the previous year, due to the country’s low vehicle ownership rate, about 40 units per 1,000 people, and the expansion of the middle class accompanying economic growth, sales in 2023 are expected to be the second highest level after 2022’s forecast result.