Vietnam”s auto market hits turning point as electric vehicles reshape sector

On July 10, VinFast announced that it had delivered 17,955 electric vehicles (EVs) to customers in Vietnam in June, bringing its total sales in the first six months of 2026 to 115,916 units, up 72 per cent compared to the same period in 2025. It also marked the first time a carmaker in Vietnam has surpassed the milestone of 100,000 vehicles sold within the first half of a calendar year.

The announcement came as Vietnam Automobile Manufacturers’ Association (VAMA) released its June sales report, highlighting notable shifts in the domestic automotive market.

According to VAMA, its member companies sold 31,104 vehicles in June, up 4 per cent from the previous month but down 2.7 per cent on-year. In the first six months of the year, total sales reached 149,761 units, representing a 15 per cent increase compared to the same period of 2025, reflecting the continued recovery of Vietnam’s automotive market.

Against this backdrop, VinFast’s growth significantly outpaced the broader market. The company’s first-half sales alone were equivalent to approximately 77 per cent of the combined sales volume of all VAMA members during the same period, underscoring the rapidly expanding scale of Vietnam’s domestic EV manufacturer in the local market.

The momentum is also becoming increasingly evident in the passenger car segment, traditionally the most competitive area of the market. VAMA members recorded passenger vehicle sales of 100,321 units in the first six months, driven primarily by multipurpose vehicles and sport utility vehicles.

Meanwhile, VinFast’s growth has been supported by a broad product portfolio spanning multiple market segments. The VF3 led the lineup with 3,550 deliveries in June and cumulative sales of 23,781 units in the first half. The VF5 followed with 3,364 units delivered in June and 20,167 units sold during the first six months. The VF 6 and VF 7 also posted cumulative sales of 14,045 units and 6,849 units, respectively, further expanding the presence of EVs across mainstream market segments.

Against this backdrop, competition in Vietnam’s automotive market is expected to intensify further in the second half of the year. VinFast is preparing to launch the VF2 at the beginning of the third quarter with a starting price of approximately $7,200, while accepting early reservations from July 15-17 and continuing to offer direct price incentives. These moves are expected to increase competitive pressure on conventional internal combustion engine vehicles.

Nevertheless, the market’s transition towards electrification continues to face concerns among consumers, particularly regarding charging infrastructure, battery technology, inspection standards, as well as testing procedures and vehicle safety assurance.

Kazuhiro Takezawa, general director of Hioki Electric Vietnam said that since EVs and charging infrastructure began expanding rapidly, regulations and requirements related to battery safety and charging systems have received increasing attention in many countries, not only in Vietnam. This has become an important topic of close discussion between governments and businesses as part of the broader effort towards sustainable transportation and carbon neutrality.

Takezawa asserted that the Vietnamese market is moving fast, with the national charging network has expanded to more than 150,000 ports for cars and motorbikes across all 34 provinces. At the same time, draft national technical regulations, expected to come into effect this year, aim to enforce safety and interoperability in line with international standards.

“Although standards and regulations are still being further developed, inspection and maintenance activities for EVs and EV batteries have already been widely implemented in many advanced markets. Hioki’s EV maintenance and lithium-ion battery testing solutions are also being adopted across several leading EV and battery markets worldwide,” Takezawa said.

“Our solutions, including battery testers, power analysers, and insulation resistance testers, enable manufacturers, service centres, and fleet operators to assess battery health non-destructively, detect degradation early, and verify the power efficiency of charging systems before issues escalate into failures. Ultimately, the value of testing equipment lies in its ability to identify problems before they become incidents.”

According to Takezawa, as EVs become increasingly common and gradually evolve into a primary mode of transportation in major cities such as Hanoi and Ho Chi Minh City, demand for safety inspection, battery condition assessment, and system maintenance will continue to grow significantly.

“A battery failure event, whether during charging, discharge, or storage, carries safety risks but also serious reputational consequences for manufacturers, operators, and the broader EV ecosystem. As the regulatory environment becomes stricter, the need for certified, accurate testing equipment becomes even more critical. We see the tightening of standards in Vietnam not as a compliance burden, but as a positive development, one that raises the bar for the entire market and rewards those who invest in proper measurement and verification,” he said. “This will be a key factor in strengthening market confidence and accelerating the adoption of clean energy vehicles in the years ahead.”

Hioki Electric Vietnam believes Vietnam has strong potential to become one of the region’s key manufacturing hubs for batteries and electrification equipment, particularly as its industrial infrastructure, supply chain ecosystem, and technical capabilities continue to evolve in the coming years.

“Vietnam also holds reserves of manganese, rare earths, and aluminium, key inputs in battery cell production, which could, over time, support a more integrated domestic supply chain rather than one that relies predominantly on imported materials,” said Takezawa. “Vietnam’s trajectory as an electrification hub directly expands the relevance and demand for our battery testing and measurement solutions. Whether it is a cell manufacturer validating production quality, a charging infrastructure operator verifying safety compliance, or a renewable energy project integrating battery storage, each of these growth scenarios creates a clear and measurable need for what we do. We are not observing this trend from the outside, we are actively positioning our technical capabilities in Vietnam to grow alongside it.”

VinFast posts $920 million revenue in Q1 In the first quarter of 2026, VinFast recorded revenues of $920.7 million, an increase of 41.7 per cent from the same period last year.

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