VinFast is leading Vietnam’s auto market in 2025. The domestic brand now holds 32.9% market share, driven by its focus on electric vehicles (EVs), competitive pricing, and alignment with government policies. In the first half of 2025, VinFast sold 56,187 EVs, with the VF 3 mini SUV being a standout model. Meanwhile, foreign brands like Toyota and Hyundai are struggling to keep up, despite their reputation for quality and imported vehicle appeal.
Key Highlights:
- Vietnam’s Auto Market Growth: 70.2% growth in H1 2025; EVs now make up 34% of total sales.
- VinFast’s Success:
- Delivered 67,569 EVs in H1 2025.
- VF 3 mini SUV sold 19,416 units in 2025.
- Competitive pricing: VF 3 starts at ₫235 million (₫315 million with battery).
- Local production and government incentives strengthen its position.
- Foreign Brands:
- Toyota, Hyundai, and Ford lead imported vehicle sales but lag behind VinFast in EV adoption.
- Imported cars grew by 43.3% in 2025, but local EVs dominate urban areas.
- Challenges for Competitors:
- Rising competition from 13 Chinese brands with aggressive pricing and local investments.
- Shift in consumer preference toward EVs and hybrids.
Quick Comparison:
| Brand | Market Share (H1 2025) | Key Strengths | Key Challenges |
|---|---|---|---|
| VinFast | 32.9% | Affordable EVs, local production | Competing in premium segments |
| Toyota | 14.5% | Trusted reliability | Falling behind in EV market |
| Hyundai | 14.7% | Local assembly investments | Losing share to EVs |
| Chinese Brands | Growing | Competitive pricing | Limited consumer trust (early stage) |
VinFast’s rise reflects Vietnam’s rapid EV adoption and the shift toward local manufacturing. While foreign brands retain a foothold, they face mounting pressure to adapt to changing market demands.
VinFast: Market Position and Local Benefits
VinFast’s Market Share and Sales Growth
VinFast has quickly established itself as the frontrunner in Vietnam’s automotive industry. In the first half of 2025, the company delivered 67,569 electric vehicles (EVs), capturing around 30% of the country’s total automobile market share. This impressive growth highlights how VinFast has surpassed traditional gasoline-powered models in popularity.
The upward trend continued through 2024, with the company delivering over 51,000 EVs by October. By 2025, VinFast maintained its momentum, with the VF 3 recording 19,416 unit sales since the start of the year.
In September 2024 alone, VinFast delivered over 9,300 EVs, outperforming its closest competitor by nearly 50%. These achievements have solidified VinFast not just as an EV maker but as Vietnam’s leading automotive brand overall.
Reasons Behind VinFast’s Success
VinFast’s remarkable sales figures are a result of well-thought-out strategies. The company has capitalized on its domestic manufacturing capabilities, giving it a competitive edge over foreign brands. Its Hải Phòng manufacturing complex, completed in a record 21 months, has fostered a network of suppliers and related industries, strengthening Vietnam’s automotive infrastructure.
The company’s focus on local sourcing plays a key role in its strategy. By 2026, VinFast aims to increase its local content ratio to 80% , a significant leap from 2023, when only 20% of vehicle components were domestically produced. To achieve this, VinFast introduced incentives for Vietnamese suppliers in June 2025, including a 50% reduction in land rental fees for the first three years and a 20% reduction for the following five years for those establishing facilities at VinFast’s Hải Phòng and Hà Tĩnh plants. This approach not only reduces costs but also ensures faster service and a more robust after-sales network.
VinFast’s focus on EVs aligns with both consumer demand and government policies. Its "Fierce Vietnamese Spirit – For a Green Future" initiative emphasizes reducing urban pollution and social responsibility. This aligns with Vietnam’s goal to double public charging stations to 30,000 by 2026, earning support from environmentally conscious consumers and policymakers alike.
"Achieving this milestone is, first and foremost, thanks to the support of hundreds of thousands of VinFast customers – those who have pioneeringly backed a young Vietnamese brand, who have shown patience in using our products, and have provided invaluable feedback to improve VinFast’s products and services from the start." – Mr. Pham Nhat Vuong, Chairman of Vingroup and CEO of VinFast Global
Additionally, VinFast’s competitive pricing strategy has made EVs an attractive alternative to traditional gasoline vehicles. Perks like free charging at V-Green stations for customers who purchase vehicles before June 30, 2027, add even more value. This blend of affordability, convenience, and national pride has resonated strongly with Vietnamese buyers.
Best-Selling VinFast Models
VinFast’s lineup has struck a chord with Vietnamese consumers, particularly in urban areas. The VF 3 mini e-SUV has been a standout success. When pre-orders opened on May 13, 2024, the model set a record with 27,649 non-refundable and non-transferable deposits in just 66 hours. With a starting price of ₫235 million (around $9,248) with a battery subscription or ₫315 million (around $12,390) including the battery, the VF 3 has been a hit, with over 50% of orders placed online.
The VF 3 has already sold 19,416 units in 2025, while the VF 5 compact SUV has also performed well, with May sales reaching 4,232 units and October sales exceeding 2,600 units .
These models have succeeded because they cater to Vietnam’s urban driving conditions with affordable prices and practical sizes, appealing to younger buyers. They combine efficient design with advanced EV technology, addressing the needs of Vietnamese families while offering the environmental benefits that resonate with today’s consumers. VinFast’s ability to scale production and expand its network of dealerships and charging stations across the country has further bolstered sales.
The success of these models reflects VinFast’s deep understanding of local market needs. By delivering vehicles that balance practicality and aspiration, VinFast has strengthened its position as Vietnam’s automotive leader. These achievements set a high bar for foreign brands trying to compete in the local market.
Foreign Brands: Market Approach and Obstacles
Major Foreign Brand Performance
Foreign automotive brands in Vietnam are navigating a fiercely competitive market landscape, with some maintaining strong positions while others face challenges. Hyundai led the market with 67,168 units sold, capturing 14.7% of the market, closely followed by Toyota with 66,576 units, accounting for 14.5%. Ford and Kia trailed behind with 42,175 (9.2%) and 41,656 (9.1%) units, respectively. Mitsubishi showed a slight rise, growing its share from 8.2% to 9% with 41,198 units, while Mazda experienced a decline from 9.4% to 7.1%. Honda held steady at 6.2%, with 28,267 units sold.
Interestingly, the data highlights a shift in consumer preferences. Between January and May 2025, imported cars outpaced locally assembled ones, with 68,280 units sold compared to 62,764. During this period, VinFast emerged as a dominant player, selling 56,187 vehicles, which accounted for 42.5% of total industry sales. This performance dwarfed Toyota’s 23,061 units, Hyundai’s 20,007 units, and Ford’s 17,533 units.
Vietnamese buyers often favor imported vehicles due to their strong brand reputation, consistent quality, modern designs, and advanced safety features. This preference is reflected in the 43.3% year-over-year increase in imported vehicle numbers, with 84,045 completely built units (CBUs) brought into Vietnam in the first five months of 2025.
Foreign automakers are adapting their strategies to reclaim market share amidst these evolving dynamics.
Foreign Brand Competition Methods
To stay competitive in Vietnam, foreign automakers are fine-tuning their strategies. Many treat Vietnam as a consumption market rather than a manufacturing hub, which impacts production costs. However, some brands are shifting gears by investing in local production, tailoring features to Vietnamese preferences, and revising pricing strategies.
Unlike VinFast, which focuses on localized production, most foreign brands rely on imports or selective local assembly. Hyundai Thanh Cong has taken a different route, achieving significant localization through joint ventures. In October 2024, the company exported the first batch of Hyundai Palisade SUVs to Thailand, benefiting from a localization rate above 40%, which qualifies for zero-tariff benefits under the ASEAN Trade in Goods Agreement (ATIGA).
"The exportation of Hyundai vehicles not only validates the quality of products made in Vietnam but also elevates Vietnamese brands in the regional landscape." – Nguyen Anh Tuan, Chairman of Thanh Cong Group
Consumer preferences are also shaping foreign brands’ strategies. SUVs and MPVs remain top choices among Vietnamese buyers. In April 2025, SUVs led the market with 5,867 units sold, followed by MPVs with 3,798 units. This trend has prompted manufacturers to focus on these segments.
Hybrid vehicles are another area of opportunity. Sales of hybrid models reached 973 units in April 2025, with a total of 3,535 units sold for the year – a staggering 82% increase compared to 2024. As 70% of Vietnamese consumers express interest in purchasing electric or hybrid vehicles, foreign brands are introducing hybrid models to tap into this growing demand.
| Segment | Market Share H1 2025 | Key Models in Demand |
|---|---|---|
| SUVs | 34% | VinFast VF8, Hyundai Tucson |
| MPVs | 21% | Mitsubishi Xpander, Toyota Veloz |
| Hatchbacks | 18% | Kia Morning, Toyota Wigo |
| Sedans | 14% | Toyota Vios, Honda City |
| Others (EVs) | 13% | BYD Dolphin, VinFast VF e34 |
New Market Entrants Impact
The competitive landscape is further reshaped by the arrival of new players, particularly Chinese brands. By 2024, seven new Chinese brands entered Vietnam, bringing their total to 13, surpassing Japan’s nine brands. These manufacturers are making waves with aggressive pricing and a strong commitment to local production.
A key example is Geely Auto Group, which partnered with Vietnam’s Tasco Group in September 2024 to develop an automotive assembly plant in Thai Binh Province. With an investment of US$168 million, the facility is set to begin production in late 2026, targeting an initial output of 75,000 vehicles annually.
"Our expansion into Vietnam represents a strategic cornerstone of Geely’s global vision. We’re introducing a diverse product portfolio while building robust local operations to deliver mobility solutions that truly address the unique needs of Vietnamese customers. Through local manufacturing investment and supply chain collaboration, we aim to contribute to Vietnam’s automotive sector, fostering mutual growth and prosperity." – Evin Ye, Vice President of Geely Automobile International Corporation (GAIC)
Chinese brands are also reshaping supply chains. Imported cars from Indonesia, Thailand, and China now account for nearly 95% of Vietnam’s total auto imports. With competitive pricing and modern features tailored to Vietnamese preferences, Chinese brands are well-positioned to attract buyers.
This influx of new players adds pressure on both domestic and established foreign brands. The growing demand for international models with better features, stylish designs, and competitive pricing, combined with rising interest in affordable, eco-friendly options like small SUVs, MPVs, and entry-level EVs, offers significant opportunities for these new entrants to carve out market share.
Main Competition Factors
Pricing and Cost Considerations
Pricing strategies have become a key battleground in the Vietnamese EV market. For local buyers, price often dictates decisions. VinFast has adopted an "inclusive pricing" approach, bundling premium features into the base price. This sets it apart from foreign competitors, who typically charge extra for advanced options.
Take the VF3 mini SUV, for example. It comes with a price tag of ₫227.65 million (around $13,700), significantly undercutting BYD’s Dolphin, which is priced at ₫369 million (about $22,000). That’s a ₫141.35 million difference, making the VF3 an attractive option for budget-aware buyers.
In the premium segment, however, VinFast faces tougher competition. Internationally, the VF8 is priced at $47,500, placing it above entry-level models from rivals like Tesla and BYD. In the U.S., the VF8 starts at $39,900 for the Eco trim and $44,900 for the Plus trim, with leasing options starting at $269 per month.
A November 2023 survey by S&P Global Mobility found that 48% of global consumers see EVs as too expensive, highlighting the importance of competitive pricing. With this in mind, VinFast aims to double its deliveries to at least 180,000 units this year.
"VinFast is refocusing on markets where it has a better chance of success. Southeast Asia should have been the priority from the start, given its proximity and rising EV adoption."
– Soumen Mandal, senior analyst at Counterpoint Research
But price isn’t the only factor – technology also plays a major role in setting competitors apart.
Technology and Features
The race among EV manufacturers is about more than just affordability; it’s also about innovation. VinFast has equipped its vehicles with features like Level 2 highway assist, over-the-air software updates, and 15.6-inch infotainment screens.
In April 2024, VinFast announced it would use NVIDIA DRIVE Orin for its autonomous EVs, while also taking steps to reduce reliance on Nvidia to maintain more control over its technology.
Charging infrastructure is another area where VinFast has made strides. In Vietnam, the company has installed charging stations every 3.5 kilometers in urban areas and every 65 kilometers on highways. This far exceeds U.S. government recommendations of 80 kilometers between stations. By addressing one of the main concerns of potential EV buyers, VinFast has strengthened its position in the market.
Consumer interest in alternative powertrain technologies is also growing. Hybrid vehicle sales jumped 82% in 2025, reflecting a shift in preferences. VinFast’s focus on technology has helped drive its success, with global car sales reaching 97,399 units in 2024 – a 192% increase compared to the previous year. By Q1 2024, the company had climbed to the #2 spot in Southeast Asia, second only to BYD.
"Due to their many environmental advantages, electric vehicles are an essential part of the global effort to promote sustainable practices and fight climate change. In order to fully realise the potential of electric vehicles and usher in a new era of sustainable mobility, VinFast is adamant that governments, corporations, and individuals must continue to promote the growth and adoption of these vehicles."
– VinFast’s Climate Pledge
These advancements, combined with government policies, are reshaping the competitive landscape.
Government Rules and Support Programmes
Vietnamese government policies are playing a pivotal role in shaping the EV market. Recent regulations reflect a strong commitment to supporting local manufacturing and boosting EV adoption.
Decree 21/2025/ND-CP, effective 10 February 2025, introduced a 0% import tax on components used in domestic assembly, benefiting manufacturers like VinFast, Thaco, and Geleximco. Similarly, Decree 51/2025/ND-CP, effective 1 March 2025, extended the registration fee exemption for EVs until 2027, making EV ownership more appealing.
| Policy | Effective Date | Impact on Competition |
|---|---|---|
| Decree 21/2025/ND-CP | 10 February 2025 | 0% import tax on auto components for domestic assembly |
| Decree 51/2025/ND-CP | 1 March 2025 | Full EV registration fee exemption until 2027 |
| Decree 73/2025/ND-CP | 31 March 2025 | 10–15% tax reduction on U.S. imports |
The government has also set ambitious targets for the automotive sector. By 2025, Vietnam aims to produce 466,400 vehicles annually, meeting 70% of local demand and exporting 37,000 units. Looking further ahead, the goal is for 30% of all four-wheeled vehicles to be electric by 2030. The numbers back this up: monthly first-time EV registrations skyrocketed from an average of 404 units in 2022 to 6,648 units in 2024. In the first half of 2025, the EV segment grew by 187.6%, making up about 34% of the total automotive market.
Vietnam’s network of free trade agreements (FTAs) has also eased trade barriers, giving manufacturers better access to both technology and export opportunities.
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VinFast vươn lên dẫn đầu thị trường nội địa, đánh bật Toyota | VOA Tiếng Việt
Conclusion: Vietnam’s Auto Market Leader
VinFast has firmly established itself as the leader in Vietnam’s automotive market, holding a commanding 32.9% market share in the first half of 2025. The company delivered an impressive 56,187 electric vehicles (EVs) during this period, with the VF 3 model leading the charge at 19,416 units sold. This growth aligns with Vietnam’s EV market expanding by an astonishing 187.6% in H1 2025, now making up 34% of the country’s automotive sector.
The automaker’s dominance can be attributed to its competitive pricing, alignment with government policies, and a well-rounded EV lineup. Foreign brands, despite their reputation for quality, have struggled to compete against VinFast’s local manufacturing advantages and aggressive pricing strategies.
Consumer Buying Guide
VinFast’s success offers valuable insights for consumers weighing their options in Vietnam’s evolving automotive market.
VinFast is a strong choice if you value:
- Competitive pricing with comprehensive features
- Flexible financing options, such as leasing plans starting at just US$269 per month
- Reliable local service support and benefits from government-backed incentives
Foreign brands might suit you better if you prioritize:
- Established reliability from trusted Japanese or Korean manufacturers
- Premium build quality, particularly in luxury vehicle segments
- A proven global track record and access to extensive international service networks
Industry Impact and Future Outlook
VinFast’s rise, from holding just 9.2% of the market in 2023 to its current 32.9% share in H1 2025, has reshaped Vietnam’s automotive landscape. This success underscores the effectiveness of Vietnam’s EV adoption policies and the advantages of local manufacturing, supporting the nation’s goal of having 30% of all four-wheeled vehicles run on electricity by 2030.
As EVs now account for 34% of total vehicle sales, dealerships are adjusting their strategies to cater to this growing demand. Looking ahead, VinFast aims to deliver at least 180,000 units in 2025. However, competition is set to intensify with the entry of seven new Chinese brands in 2024. Even so, VinFast’s remarkable growth rate of 175.1% and its early lead in the EV market position it strongly for continued success.
This rapid transformation represents one of the most significant shifts in Vietnam’s automotive history, not only highlighting VinFast’s achievements but also signaling Vietnam’s emergence as a key player in the global auto industry.
FAQs
How has VinFast become a leader in Vietnam’s automotive market?
VinFast has quickly claimed a leading spot in Vietnam’s auto market by following a well-thought-out approach. At the heart of its strategy is a focus on electric vehicles (EVs), emphasizing their environmental advantages in line with global trends toward sustainability. To make EVs more practical for Vietnamese drivers, the company has built an extensive nationwide charging network, simplifying the transition to electric mobility.
Another key factor is VinFast’s commitment to local production. Over 60% of its vehicle components are sourced locally, which not only cuts production costs but also deepens its ties to the domestic market. Combined with strong government backing and pricing designed to suit local budgets, VinFast has successfully established itself as a reliable and approachable choice for drivers in Vietnam.
How are foreign car brands responding to Vietnam’s growing demand for electric vehicles (EVs)?
Foreign carmakers like BYD, Chery, MG, Hyundai, and Kia are stepping up to meet Vietnam’s growing interest in electric vehicles (EVs). They’re rolling out EV models designed specifically for the local market while also putting resources into building a network of charging stations across the country to make EV ownership more convenient.
These companies are also aligning their plans with Vietnam’s government initiatives that encourage green energy and eco-friendly transportation. By combining attractive pricing, advanced technology, and practical EV options, they aim to win over environmentally-conscious buyers and cement their place in Vietnam’s expanding EV market.
How do government policies impact the competition between VinFast and foreign car brands in Vietnam?
Government policies in Vietnam play a major role in shaping the dynamics of the auto market. For instance, subsidies and incentives targeting electric vehicles (EVs) have given VinFast a considerable edge, solidifying its position as a leader in the domestic market. These policies include tax breaks, reduced registration fees, and other perks that encourage EV adoption.
On the other hand, trade agreements and investment-friendly regulations have paved the way for international car manufacturers to enter and expand their presence in Vietnam. This has created a more diverse and competitive market, offering Vietnamese consumers more options while pushing for advancements in technology. By supporting local brands like VinFast while also welcoming foreign investment, the government strikes a balance that fuels growth in the automotive sector, benefiting both businesses and consumers alike.
