Overview of the workshop (Photo: congthuong.vn)
Speaking at a workshop titled Developing Vietnam’s automobile industry on December 26, Deputy Minister of Industry and Trade Truong Thanh Hoai said the sector plays a strategic role with strong spillover effects across manufacturing and supporting industries.
The event, held at the Institute of Strategy and Policy on Industry and Trade, formed part of preparations for the national automobile industry strategy. Truong Thanh Hoai said the draft strategy was largely complete but required further refinement, particularly in policy design, which he described as decisive for sustainable development.
He said the strategy must provide a comprehensive assessment of the industry’s current state, clearly identify achievements and shortcomings, and propose practical policy and legal solutions to address bottlenecks and guide future growth.
According to the draft, the automobile industry is identified as a foundational sector with broad impacts on economic growth, industrialisation, modernisation, and national defence and security, in line with the Party’s development guidelines.
The strategy emphasises parallel development of domestic vehicle manufacturing and assembly alongside supporting industries, treating them as two closely linked pillars. Long-term, stable policies are seen as essential to encourage large-scale investment.
Industry development is expected to follow a roadmap aligned with the green energy transition, based on pillars including environmental protection, technology, infrastructure, human resources and market development. Priority is given to building a strong supporting industry capable of producing high-quality components and integrating more deeply into global supply chains.
The strategy also reflects the global shift away from fossil-fuel vehicles toward environmentally friendly models such as compressed natural gas vehicles, hybrids, battery electric vehicles and hydrogen fuel-cell vehicles, with the aim of reducing fuel consumption and greenhouse gas emissions.
By 2030, Vietnam’s automobile market is projected to reach 800,000–900,000 vehicles, with average annual growth of 8-10 per cent. Environmentally friendly vehicles are expected to account for 25-35 per cent of the market. Domestic production and assembly output is estimated at 550,000-650,000 vehicles, meeting 70-75 per cent of demand, while exports of vehicles and components are targeted at USD 14-15 billion.
By 2045, the domestic market is forecast to expand to 4.5-5 million vehicles, with annual growth of 10-12 per cent. Environmentally friendly vehicles are projected to make up 75-80 per cent of sales. Domestic output is expected to reach 3.8-4.2 million vehicles, meeting 80-85 per cent of demand, with export value rising to USD 35-40 billion, strengthening Vietnam’s position in the global automobile value chain.