VN's car industry to diversify supply chain

A new model truck at the Vietnam Motor Show in October 2024. — VNA/VNS Photo

Vietnamese enterprises continue to persify their auto parts and components sources, importing from a wide range of countries, including China, South Korea, Thailand, Japan, Indonesia and India.

While China remains a significant supplier, recent trade data highlights Việt Nam’s efforts to persify supply sources to meet industry demands.

According to statistics from Việt Nam Customs, the country imported US$479 million worth of car parts in December 2024, marking a slight increase of 1 per cent month-on-month. China remained the largest supplier, accounting for $170 million of the total, reflecting a 16.9 per cent increase.

However, other key markets also played crucial roles. South Korea supplied $91.5 million worth of parts despite experiencing a 22.1 per cent decline, while Thailand contributed $68 million, up 14.1 per cent. Japan's exports to Việt Nam reached $52 million, growing by 6.1 per cent, while Indonesia and India supplied $35.7 million and $35.5 million, respectively, showing mixed trends.

For the year 2024, Việt Nam’s total car parts imports reached $4.86 billion, representing an 18.3 per cent increase compared to 2023. This upward trend indicates the country's sustained demand for automotive components from a perse range of suppliers.

In parallel, Việt Nam’s import of completely built-up (CBU) automobiles also showed dynamic shifts. In December 2024, Việt Nam imported 12,881 CBU units valued at $303.6 million, a sharp decline of 27.9 per cent from the previous month’s 17,855 units. Three primary markets – Thailand, Indonesia, and China – continued to dominate CBU imports, collectively accounting for 94 per cent of the total. Specifically, Indonesia led with 5,685 units, followed by Thailand with 3,624 units and China with 2,783 units.

Focusing on passenger vehicles, Việt Nam imported 10,477 cars with nine seats or fewer in December, making up 81.3 per cent of all CBU imports. This category saw a 29.4 per cent drop from November, with imports from Indonesia, Thailand and China declining by 22.7 per cent, 30.5 per cent, and 31.9 per cent, respectively. Meanwhile, Việt Nam imported only nine buses and 1,046 trucks, with the latter showing a 29.2 per cent volume decline but a 5.2 per cent increase in value compared to the previous month.

Despite December’s decline, overall CBU imports for 2024 surged to 173,561 units, marking a significant 45.8 per cent increase year-on-year. Within this, cars with nine seats or fewer rose by 47.7 per cent to 142,773 units, while truck imports increased by 4.4 per cent to 15,008 units.

In addition to passenger and commercial vehicles, Việt Nam also imported specialised vehicles. December 2024 saw 1,349 units enter the country, valued at $68.3 million. While this represented a 9.8 per cent drop in volume, the value of these imports increased by 11.3 per cent compared to November. China remained the dominant supplier, accounting for 87 per cent of all specialised vehicle imports, though its shipment volume decreased by 18.7 per cent.