Vietnam★ Motor Show: Japanese Firms Lay Groundwork for Market Expansion

The 9th Vietnam Motor Show was held in Ho Chi Minh City from October 23 to 27 (hosted by the Vietnam Automobile Manufacturers Association).
Fifteen manufacturers exhibited, two more than last year. Eight were Japanese-affiliated, including luxury brands like Lexus (Toyota) and Infiniti (Nissan), which made their debut appearances. This was reported by NNA, which distributes Asian economic information.

In 2012, Vietnam's domestic automobile sales totaled approximately 93,000 units. This represents only one-fifteenth of Thailand's sales (approximately 1.44 million units), known as "Southeast Asia's Detroit," indicating a small market.
However, manufacturers anticipate that motorization will arrive in Vietnam within the next decade, leading to significant market expansion. They are laying the groundwork for brand penetration through events like motor shows.
Vietnam is also beginning to see tailwinds for the industry. This year, it reduced passenger car registration fees in some cities like Hanoi and designated the automotive industry as one of the key sectors in its industrialization strategy.

At last year's motor show, some Japanese manufacturers were uncertain about continuing local production in the future. However, visiting booths this time revealed a common sentiment: they intend to put down roots in Vietnam and continue production and sales.

Toyota Vietnam, the market leader, showcased its concept car "Fun-Vii" as the highlight, featuring a full-body display and network connectivity, envisioned as a "smartphone on wheels." It also exhibited its already-launched sedan "Camry," the sport utility vehicle (SUV) "Fortuner," and the rear-wheel-drive sports car "FT-86."
The company sold 23,324 units from January to September this year, a 43% increase compared to the same period last year, making it the only manufacturer to exceed 20,000 units.
Regarding future production plans, Toyota Vietnam President Yoshihisa Maruta stated, "Toyota's policy is to produce where demand exists. We view Vietnam as a promising market." He further emphasized, "To foster the industry, the Vietnamese government's support is needed not only for manufacturers but also for suppliers," stressing the desire for Japanese manufacturers to unite and lobby the government. (Photo: Toyota Vietnam President Maruta addressing the venue on October 23, NNA photo)

Honda Vietnam sold 2,752 units from January to September this year, a 3.3-fold increase compared to the same period last year. This represents the highest growth among the 19 member companies of the Vietnam Automobile Manufacturers Association. At this show, Honda Vietnam showcased its concept car, the "Urban SUV Concept," alongside the sedans "Accord," "Civic," and "City," and the SUV "CR-V." Tomohiro Maruno, Director of the Automobile Sales Division, stated, "Our customer base is expanding," adding that preparations for increased production are also underway. (Photo: Honda Vietnam President Masayuki Igarashi and Director Maruno, from left, October 23, NNA photo)

Vinastar (Mitsubishi Motors), which displayed locally assembled SUVs like the Pajero Sport, also reported strong sales, with units sold from January to September up 59% year-on-year to 1,505 units. President Yoshio Kobayashi explained that commercial vehicles like small trucks are selling well due to lower selling prices resulting from the weak yen.

Nissan Vietnam displayed models including the compact sedan "Sunny," assembled in Da Nang. According to a company representative, Nissan plans to produce 4,000 units at its Da Nang plant this fiscal year and is considering expanding the lineup of vehicles assembled there.

Hino Motors Vietnam, whose mainstay is large and medium-sized trucks, displayed new small truck models. The company sold 1,019 units from January to September this year, a 2.3-fold increase year-on-year, benefiting from the weak yen. This marked the strongest growth among truck manufacturers. President Masaaki Mochizuki believes the strong Korean won of competing South Korean manufacturers also contributed.

Vietnam Suzuki, which holds a 70% share in the light truck segment, exhibited imported Japanese models at this show, including the compact hatchback "Swift" and the SUV "Grand Vitara." General Manager Yotaro Uto explained the strategy: "We are certain passenger car demand will expand in Vietnam. We want to raise awareness that Suzuki also offers passenger cars and gauge the initial response."

Other official dealers exhibiting at the show included GM, BMW, Mercedes-Benz, Renault, Audi, Ford, and Land Rover. Local manufacturers like Thaco did not exhibit.

According to Vietnam News on October 31, Mercedes-Benz secured sales contracts for over 100 vehicles during the five-day period. Audi sold 28 units, Land Rover 15 units, and BMW 12 units, totaling approximately 200 vehicles sold. Total attendance reached 153,300 visitors, with about 50,000 people visiting on the final day, the 27th.