With 500,000 cars sold in 2022, Vietnam’s automobile market hit a milestone on the path to become one of the largest automobile markets in Southeat Asia, besides Thailand, Indonesia and Malaysia.

Vietnam posted an all-time high import of automobiles with 173,467 units valued at 3.84 billion USD last year, surpassing the previous record of about 160,000 units in 2021, reported the General Department of Vietnam Customs.

The nation raked in more than US$10.79 billion from exporting auto accessories and vehicles during the initial 11 months of the year, up 13.1% against the same period from last year, according to information given by the General Statistics Office.

Electric cars are a growing trend in the world market, but they require high costs and charging stations. Hybrid cars that use two or more types of power are better suited at this time.

For the Prime Minister’s draft decision on retail electricity pricing, the Vietnam Confederation of Commerce and Industry (VCCI) has proposed a pricing mechanism for electric vehicles (EVs).

While the lack of charging stations could be an obstacle for the use of electric vehicles, this will not be an issue for hybrid vehicles.

Large auto manufacturers have launched electric models in Vietnam, which indicates that replacing cars with electric vehicles will be a permanent trend.

Green and cleaner transport initiatives are being promoted in Vietnam, with more top brands hoping to offer the future of electric vehicles.

At least three foreign automobile manufacturers in the last year have chosen Vietnam as a potential market to seek investment opportunities and use it as a springboard to export cars to regional countries.

The Vietnamese government has encouraged manufacturing of electric vehicles under the green energy development plan, but standards for electric vehicles are unavailable.

The Ministry of Science and Technology will officially lift regulations on the localization ratio in the automobile sector and the levels at which imported vehicle components are knocked down beginning October 1.

Vietnam has continued spending billions of US dollars on importing auto spare parts as the local car industry failed to achieve it's localisation targets.