Vietnam’s auto market is stepping into the Year of the Horse 2026 with optimistic forecasts, building on a record-breaking 2025 and accelerated electrification trends.

Strong recovery momentum from 2025

In 2025, Vietnam’s auto market posted record sales of 604,064 vehicles from VAMA members, VinFast and Hyundai Thanh Cong, up more than 22% compared to 2024. This marked the strongest growth since the post-pandemic recovery began.

The figure excludes imported luxury brands such as Mercedes-Benz, Audi, Jaguar Land Rover, Volvo and Nissan, as well as nearly a dozen Chinese brands that have recently entered Vietnam, including MG, BYD, Lynk & Co, Omoda & Jaecoo, Geely, Wuling and Haval.

Among established manufacturers, Toyota sold 71,954 units (excluding Lexus), up 8.1% year-on-year. Ford recorded 50,450 units, a 19.6% increase and its highest-ever sales in Vietnam. Mitsubishi reached 44,107 units, up 7.1%.

The standout performer, however, was VinFast. The Vietnamese electric carmaker sold 175,099 vehicles in 2025 - roughly double its 2024 volume - maintaining its position as market leader and widening the gap with traditional top-selling brands.

According to industry experts, the market’s rebound was driven by a combination of supportive policies and flexible pricing strategies. Strong incentives - including direct discounts, registration fee support and preferential financing - stimulated demand, especially in the mass segment. Stable macroeconomic conditions and lower lending rates also strengthened consumer confidence.

Electrification emerged as a major growth engine. The expansion of charging infrastructure, continued tax incentives and new product launches helped make electric and hybrid vehicles more appealing thanks to lower operating costs and broader choices.

Overall, 2025 marked a sustainable recovery, laying a solid foundation for further expansion in 2026.

Greater opportunities for buyers in 2026

Entering 2026, Vietnam’s auto market is expected to continue growing, supported by recovered purchasing power, stable policy backing and competitive pricing.

One key advantage is price accessibility. After intense discount campaigns in 2025, consumers now expect stable pricing and ongoing incentives. Major brands such as Toyota, Hyundai, Ford, Mitsubishi, Honda and Mazda will continue to compete strongly in the traditional internal combustion engine (ICE) segment, which remains the backbone of total sales.

Electrification will be the second major driver. Charging networks are expanding, and tax and fee incentives for electric vehicles remain in place. VinFast is expected to maintain its leadership with new, more affordable models targeting young buyers and first-time car owners - key contributors to overall demand growth.

However, the most notable feature of 2026 will likely be intensified competition from new entrants, particularly Chinese brands.

Two additional brands - Zeekr and Lotus - are set to officially enter the Vietnamese market through Tasco Auto. Meanwhile, the Geleximco–Chery joint venture is accelerating construction of an $800 million Omoda & Jaecoo plant in Hung Yen Province, with the first vehicles expected to roll out in the third quarter of this year.

Several other manufacturers have announced or initiated plans to build factories in Vietnam, signaling long-term commitments. Local production not only reduces costs but also opens opportunities to develop domestic supply chains.

A more competitive landscape

Industry analysts predict that Vietnam’s auto market in 2026 will grow by 10–15% compared to 2025, potentially setting a new sales record and surpassing Thailand to become the third-largest automotive market in Southeast Asia.

Three pillars are expected to define this next phase: sustained price competition, accelerating electrification and the expansion of new brands. Together, these forces are reshaping market structure and setting the direction for long-term growth.

Hoang Hiep