Vietnam offers major opportunities to the automotive industry
With an annual growth in GDP of 6 to 7% — the world’s second fastest per capita since 1990 according to The Economist — Vietnam’s domestic consumer market has a proven track record of consistently improving and huge future potential.
Peoples’ ability and willingness to buy cars normally starts when GDP per capita exceeds USD3,000, according to Nissan—Vietnam will hit that target by 2020 (see IMF report of April 2016).
That the automotive market is established and growing fast is not in doubt:
• There are 19 car brands available in the country
• Over 300 1st- and 2nd-tier suppliers
• More than 199,162 cars were built in 2015, and
• Nearly 245,000 cars were sold in that year.
And the local market continues to expand rapidly:
• Car sales have dramatically increased over recent years: today, those sales are forecast to expand exponentially
• To put that in perspective, by 2020 the forecast is that 220,000 cars will be sold in Vietnam annually—by 2030 it will soar to 1.5 million annually.