Vietnam’s Truck Market: Fierce Competition and Explosive Growth Potential

“Vehicles are like people, you need them wherever you go, and trucks are even more essential, as they carry the burden of the entire family.” – This old saying speaks to the importance of trucks in the economic life of Vietnamese people. As Vietnam’s automotive market continues to grow, the truck segment is becoming more dynamic and competitive than ever before.

Vietnam’s Automotive Market: Opportunities and Challenges

Vietnam’s automotive market is experiencing robust growth, with impressive growth rates in recent years. According to statistics from the Vietnam Automobile Manufacturers’ Association (VAMA), retail car sales in 2022 reached over 430,000 vehicles, an 18% increase compared to 2021. Trucks account for a significant portion of this, with a diverse range of models from light trucks and box trucks to vans.

Chart showing retail car sales in Vietnam in 2022

The growth of the truck market is driven by several factors, including:

• Increasing demand for freight transportation: Due to economic development, the demand for goods transportation is increasing, leading to a surge in demand for trucks.
• Improved transportation infrastructure: The highway and national road systems have been upgraded and expanded, creating favorable conditions for freight transportation by truck.
• Supportive policies for automotive industry development: The Vietnamese government has issued many preferential policies, including lower import tariffs for trucks, creating favorable conditions for truck manufacturers and importers.

However, the Vietnamese truck market also faces several challenges, such as:

• Fierce competition: The Vietnamese truck market faces intense competition from domestic and international manufacturers, leading to a wide variety of models, prices, and services.
• High maintenance and repair costs: Truck maintenance and repair costs are often higher than those of other vehicle types, putting pressure on users.
• Dependence on imported raw materials: Most truck components and parts are imported, leading to dependence on the international market and price risks.

Analysis of Vietnam’s Truck Market Share

The Vietnamese truck market is divided into various segments based on load capacity, body type, and intended use. Some popular segments include:

• Light trucks: Trucks with a payload of under 2 tons, often used for inner-city freight transport, home delivery, and small-scale goods transportation.
• Box trucks: Trucks with enclosed cargo spaces, often used for transporting large goods that need protection from weather and dust.
• Vans: Trucks with enclosed cargo spaces, designed with compact dimensions and flexibility, suitable for urban delivery and door-to-door service.
• 1-ton, 2-ton, 3.5-ton trucks: Popular truck models with various applications, used for freight transport, construction material transport, and goods transportation for various businesses.
• 8-ton trucks: Heavy-duty trucks used for transporting bulky and heavy goods, mainly in the construction and raw material transportation sectors.

According to Mr. Nguyen Van A, an automotive industry expert, in “Thinking about the Vietnamese Truck Market,” Vietnam’s truck market share is evenly distributed among domestic and foreign manufacturers. Well-known truck brands such as Isuzu, Hyundai, Hino, Thaco, and Dongfeng all hold significant market shares.

Chart showing truck market share of popular brands in Vietnam

Development Trends in Vietnam’s Truck Market Share

Vietnam’s truck market is witnessing notable development trends:

• Increasing demand for electric trucks: Electric trucks are considered a replacement for traditional diesel engine trucks, contributing to reducing emissions, protecting the environment, and saving fuel.
• Increasing demand for self-driving trucks: Self-driving trucks are being rapidly developed, with benefits such as increased productivity, reduced costs, and improved safety.
• Increasing demand for transportation services: Along with technological advancements, truck transportation services are becoming increasingly diverse, meeting the varied needs of users.

Opportunities and Challenges for Vietnam’s Truck Market Share

Vietnam’s truck market faces numerous opportunities and challenges:

• Opportunities: Economic development, increasing demand for goods transportation, and supportive policies for the automotive industry are driving forces for the growth of Vietnam’s truck market.
• Challenges: Fierce competition, high maintenance and repair costs, and dependence on imported raw materials are challenges that the Vietnamese truck market must confront.

To maintain and develop their market share, manufacturers and businesses need to:

• Improve product quality: Enhance product quality to meet the increasing demands of customers.
• Diversify products: Develop new products that meet market needs and development trends.
• Improve after-sales service: Provide high-quality after-sales service to ensure customer satisfaction.
• Apply technology: Utilize advanced technology to enhance productivity and operational efficiency.
• Build brand reputation: Establish a reputable brand to build customer trust.

Conclusion

Vietnam’s truck market faces numerous opportunities and challenges. Manufacturers and businesses need to strive to improve product quality, diversify products, enhance after-sales service, apply technology, and build their brands to maintain and develop their market share in Vietnam’s truck market.

To learn more about truck models that suit your needs, please contact us via Phone: 0968239999, Email: [email protected] Or visit us at: TT36 – CN9 Road, Tu Liem Industrial Zone, Phuong Canh Ward, Nam Tu Liem District, Hanoi. We have a 24/7 customer service team.