As of 2024, 9% of Vietnamese households own personal cars, a significant increase of 3.3 percentage points compared to 2019, according to a report by the General Statistics Office (GSO).

This rapid growth reflects Vietnam’s accelerating motorization and rising living standards, with car ownership projected to rise even further in the coming years.

Growing car ownership amid population increase

Vietnam’s population reached 101.1 million as of April 1, 2024, making it the third-most populous country in Southeast Asia and 16th globally.

The country now has over 28.1 million households, an increase of nearly 1.3 million since 2019. Among these, 89.4% of households own motorbikes or scooters, while 9% - equivalent to 2.53 million households - own personal cars.

This marks a 1.6-fold increase in household car ownership over the past five years, reflecting a growing demand for private vehicles.

Domestic production and imports on the rise

Vietnam’s automotive market continues to expand, driven by both domestic production and vehicle imports.

In 2024, an estimated 388,500 vehicles were manufactured or assembled locally, a 27% increase compared to 2023. Additionally, the country imported approximately 172,240 fully built cars worth $3.62 billion, a year-on-year increase of 14.7% in volume and 27.6% in value.

If these vehicles are fully absorbed into the market, the number of cars in Vietnam could grow by an additional 560,000 units in the near future.

The road to “motorization”

As of the end of 2023, Vietnam had an estimated 6.31 million cars, equating to an average ownership rate of 63 cars per 1,000 people.

Experts predict that Vietnam’s automotive market will grow significantly between 2025 and 2030 as the country enters the “motorization phase,” marked by ownership rates exceeding 50 cars per 1,000 people. The rise in car ownership is also supported by GDP per capita surpassing $4,000 annually.

The Ministry of Industry and Trade’s draft strategy for Vietnam’s auto industry aims to maintain an annual market growth rate of 14–16% by 2030.

This would result in an estimated 1 to 1.1 million cars sold annually by the end of the decade, supporting Vietnam’s transition into a motorized economy and fostering the development of the domestic automotive industry.

Hoang Hiep