Vietnam car sales hit record 510,000 in 2022, strong demand set to continue

[HO CHI MINH CITY] Vietnam’s car market saw record sales of about 510,000 units in 2022 – exceeding the threshold to be considered a large automobile market in South-east Asia along the likes of Thailand, Indonesia and Malaysia.

This marked a 21 per cent increase from the year before, and observers said the higher number was largely buoyed by pent-up demand as a result of the pandemic, the availability of new entry-level low-cost models, and a government incentive scheme to halve registration fees for locally assembled cars from end-2021.

It wasn’t entirely rosy throughout the year, though. The fourth quarter of last year saw the auto market lose some steam as demand fell when banks tightened lending and raised interest rates. Rising inflation and a bleak financial market were also factors, and some dealers were even forced to slash prices as buyers stayed away.