Workers at a car assembly workshop of Toyota Việt Nam in Vĩnh Phúc Province. — Photo courtesy of vnecomy.vn

In the draft strategy for the development of Việt Nam's automobile industry until 2030, the Ministry of Industry and Trade (MoIT) has outlined a target of 1-1.1 million cars sold, with an average annual growth rate of 14-16 per cent.

This includes sales of electric vehicles, hybrids and solar-powered vehicles, expected to reach 350,000 units by 2030.

By 2045, the market growth rate is projected to reach 11-12 per cent annually, with a total vehicle count of 5-5.7 million.

Of these, electric vehicles and those using clean energy are anticipated to capture 80-85 per cent market share, equating to 4.3-4.4 million vehicles.

The output of domestically assembled vehicles is expected to be around 4-4.6 million units, meeting 80-85 per cent of domestic demand.

The consumption target set for 2030 is about 2.5 times higher than the figures recorded at the end of 2023.

According to a report from the National Traffic Safety Committee, in 2023, more than 408,500 new vehicles were registered nationwide, bringing the cumulative total to 6.31 million vehicles by the end of that year.

This figure also doubled the record sales of over 500,000 vehicles in 2022. During this time, Việt Nam's car market had the second-highest purchasing power growth in the region, after Malaysia.

The MoIT noted that since 2011, the market has been consistently growing. As of 2023, the average ownership rate is 63 vehicles per 1,000 people.

In formulating this strategy, authorities also aim to increase the share of domestically produced and assembled vehicles to about 70 per cent of domestic demand by 2030, and to meet 87 per cent by 2045.

Currently, the proportion of completely built-up (CBU) imported vehicles remains significant, at over 40 per cent, according to the General Department of Việt Nam Customs and the Việt Nam Automobile Manufacturers' Association (VAMA).

Việt Nam aims to enhance its supporting industries, targeting that by 2030, the automotive production support sector will fulfil approximately 55-60 per cent of the demand for components and parts for domestic assembly, with an increase to 80-85 per cent by 2045.

“To create high-quality automobile products, we need good materials for manufacturing, high-quality manufacturing capabilities, robot programming and stringent quality control,” the MoIT said. — VNS