In Vietnam’s narrow, congested roads, tariff-free US cars won’t find much traction with buyers
American SUVs remain a tough sell in motorbike-heavy Vietnam, where compact, fuel-efficient Japanese and South Korean cars are a better fit
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[HO CHI MINH CITY] Tariff-free or not, American sport utility vehicles (SUVs) face a tough road in Vietnam where nearly half of all car sales go to SUVs, as buyers are likely to still favour leaner, fuel-efficient models from Japan or South Korea over the bulky and petrol-guzzling US rides.
In addition, electric vehicle (EV) manufacturers such as home-grown company VinFast and some Chinese players are gaining an upper hand in Vietnam, bolstered by recent domestic policies that will restrict fossil fuel-powered vehicles in major urban traffic routes in the coming years.
So while US President Donald Trump may tout the SUV as a “wonderful addition” to US exports to Vietnam following a bilateral trade pact struck earlier this month, road realities suggest it may do little to drive demand for these large-engine vehicles shipped from halfway around the world.
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