Vietnam’s automotive market experienced robust growth in February, with VinFast leading sales, according to the Vietnam Automobile Manufacturers Association (VAMA).

A total of 18,893 cars were sold in Vietnam in January, a drop of 40% compared to the previous month, according to a monthly report issued by Vietnam Automobile Manufacturers Association (VAMA) on February 13.

Vietnamese car maker VinFast announced that it delivered over 20,000 vehicles in December 2024, a sales record in the domestic market, raising its total last year to more than 87,000.

The Vietnamese government has announced a temporary 50% reduction in registration fees for domestically produced and assembled cars.

Vietnam’s automobile market is expected to bounce back in the last months of 2024 if a proposal to cut registration fees by half for domestically manufactured and assembled cars is approved.

Domestic automobile market is currently facing a situation of high supply and low demand. This has resulted in a decline in sales and an excess of inventory for carmakers.

The decline in domestic automobile consumption and its drop to fifth place in Southeast Asia can be attributed to both external and internal factors, according to industry insiders.

The recent decline in Vietnam’s automobile consumption and its drop to the fifth place in Southeast Asia can be attributed to both external and internal factors, car experts said.

The Ministry of Industry and Trade supporting the reduction of automobile registration fees is considered to have a positive effect on the auto industry in the context of the automobile market facing many difficulties.

While normally a positive time for car sales, this year the domestic automobile market is seeing gloomy days as Tet approaches, according to local car experts.