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12th June 2026

Việt Nam auto sales rise 20% in five months as hybrid vehicles lead market

Hybrid vehicles continued to gain momentum. Monthly hybrid sales reached 1,670 units in May, representing a 59 per cent increase from April.

HÀ NỘI — The automotive market continued its strong recovery in the first five months of 2026, with total vehicle sales rising 20 per cent year-on-year.

Hybrid vehicle sales surged 80 per cent, emerging as one of the strongest growth drivers in the country’s accelerating vehicle electrification trend.

Earlier this week, the Việt Nam Automobile Manufacturers Association (VAMA), whose members account for roughly 62 per cent of the country’s automotive market, reported total sales of 29,935 vehicles in May. While the figure was down 6 per cent from April, it remained 6 per cent higher than the same month last year.

Passenger vehicles accounted for 19,182 units sold during the month, down 10 per cent from April. Commercial vehicle sales increased 5 per cent to 10,288 units, while sales of specialised vehicles fell sharply by 45 per cent to 465 units.

Sales of domestically assembled vehicles reached 13,080 units in May, down 6 per cent from the previous month. Imports of completely built-up (CBU) vehicles also declined by 6 per cent to 16,855 units.

Hybrid vehicles continued to gain momentum. Monthly hybrid sales reached 1,670 units in May, representing a 59 per cent increase from April. Cumulative hybrid sales for the January–May period totaled 8,518 units, up 80 per cent compared with the same period in 2025.

Toyota remained the market leader in May with sales of 5,653 vehicles. Ford ranked second with 3,493 units, followed by Mitsubishi with 3,111 vehicles, Kia with 2,512 units and Mazda with 2,304 units.

The Mitsubishi Xpander was the best-selling vehicle in May with 1,236 units sold, narrowly ahead of the Toyota Yaris Cross at 1,214 units. The Mazda CX-5 ranked third with 1,159 units, followed by the Toyota Veloz Cross with 797 units and the Mitsubishi Xforce with 693 units.

According to VAMA data, cumulative sales during the first five months of 2026 reached 156,729 vehicles, an increase of 20 per cent year-on-year. Passenger vehicles remained the dominant segment with 103,802 units sold, up 13 per cent, while commercial vehicle sales rose 32 per cent to 50,270 units.

Battery electric vehicles (BEVs) reported by VAMA members totaled 64 units during the period, highlighting the gradual expansion of electrified vehicle offerings in the Vietnamese market.

VAMA said sales of domestically assembled vehicles increased 11 per cent during the first five months of the year compared with the same period in 2025. Meanwhile, imported vehicle sales jumped 27 per cent, reflecting intensifying competition from foreign-made models in Việt Nam.

The figures suggest that Việt Nam’s automotive sector has maintained a positive growth trajectory in 2026 despite a short-term sales slowdown in May.

Demand for personal mobility, commercial transportation and fuel-efficient vehicles, particularly hybrids, is expected to remain a key growth catalyst in the months ahead.

However, industry analysts caution that the VAMA data does not provide a complete picture of the market. Several automotive brands operating in Việt Nam do not publicly disclose sales figures, including Audi, BYD, Jaguar Land Rover, Geely, GAC, Lynk & Co, Omoda & Jaecoo, Mercedes-Benz, Nissan, Subaru, Volkswagen and Volvo.

In addition, major industry players such as Hyundai Thanh Cong and VinFast have yet to release their latest sales results, making it difficult to fully assess overall market performance so far this year.

Strong domestic production

Việt Nam’s automotive industry also achieved a significant milestone on the supply side, with domestic vehicle production and assembly reaching a record level in May and substantially outpacing imports.

According to the General Statistics Office, approximately 76,837 new vehicles were supplied to the Vietnamese market during May, the highest monthly figure recorded since the beginning of the year. The total represented a 13.2 per cent increase from April.

The strongest performance came from domestic manufacturing and assembly operations. Vehicle output reached 53,700 units during the month, up 4.7 per cent from April and 40 per cent higher than in May 2025.

Domestic production significantly exceeded imported vehicle volumes, which totaled approximately 23,137 completely built-up units. The gap of more than 30,000 vehicles in a single month underscores a notable shift in supply dynamics toward local assembly plants.

During the first five months of 2026, domestic manufacturers produced an estimated 232,100 vehicles, representing year-on-year growth of 26.7 per cent.

The increase in local production has enabled manufacturers to reduce logistics costs and improve supply-chain efficiency. From a broader economic perspective, the trend is viewed as a positive development, supporting job creation, reducing import dependence and contributing to improvements in Việt Nam’s trade balance.

Source: VNS

Photo: VinFast

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Ho Chi Minh City launches eight key projects worth US$9.6 bln

2nd July 2026

Ho Chi Minh City on July 1 simultaneously broke ground on eight major infrastructure projects worth more than VND253 trillion (US$9.6 billion) to mark the 50th anniversary of Saigon-Gia Dinh officially being named after President Ho Chi Minh (July 2, 1976–2026).

The projects are the Nha Rong Wharf–Khanh Hoi Cultural Park and Bach Dang Riverside Green Space; the Ho Tram–Long Thanh International Airport Urban Expressway; the Can Gio–Vung Tau Sea-Crossing Route; the Cai Mep Ha General and Container Port (Phase 1); the Binh Tien Bridge and Road project, the Ho Chi Minh City–Moc Bai Expressway (Phase 1), the interchange of the Ben Luc–Long Thanh Expressway and Rung Sac Road; and the interchange of the Ben Luc–Long Thanh Expressway and National Highway 50.

Speaking at the ground-breaking ceremony, Vice Chairman of the municipal People's Committee Hoang Nguyen Dinh described the event as more than the start of major construction works.

It is a pledge in action, demonstrating the city's determination to enter a new stage of development and meet the expectations of the nation, he said.

According to Dinh, the projects will improve regional connectivity, expand urban development space and strengthen the city's competitiveness.

Among them, the Nha Rong Wharf–Khanh Hoi Cultural Park and Bach Dang Riverside Green Space project holds particular historical significance. Covering more than 73 hectares, the site is where President Ho Chi Minh departed in 1911 to seek a path for national salvation.

The area is expected to become a major cultural, historical and tourism destination while improving traffic along the Saigon River.

Dinh urged relevant agencies to accelerate administrative procedures, site clearance and construction material supplies, while calling on investors and contractors to apply modern technologies, ensure construction quality and safety, and prevent losses throughout project implementation.

Dang Minh Truong, chairman of Sun Group, said developing the Nha Rong Wharf–Khanh Hoi project is both an honour and a historic responsibility.

He noted that the company aims to preserve and promote the area's heritage rather than replace it with new landmarks.

Meanwhile, Vingroup Deputy General Director Tran Van Anh, representing the consortium that is developing the Can Gio–Vung Tau Sea-Crossing Route, stressed the company would mobilise its financial, technological and human resources for the project.

She added that the route would significantly shorten travel time between Can Gio and Vung Tau, promoting trade, tourism and the region's marine economy.

According to the municipal People's Committee, the projects are financed through a combination of public investment, public-private partnerships (PPP) and private capital, reflecting the Government's policy of promoting private sector development.

The city expects the projects to unlock new development opportunities following its expanded administrative boundaries, strengthen regional connectivity, boost the marine economy, logistics, tourism and services, and reinforce Ho Chi Minh City's role as Vietnam's leading economic centre.

Dong Nai seeks to pioneer pilot nuclear power plant using small modular reactors

2nd July 2026

Looking toward 2050, the southern city aspires to lead the country in high-tech industries, evolving into a premier center for nuclear research, training, and application in both Vietnam and the broader region.

Dong Nai City in southern Vietnam has set a strategic goal to become the pioneering locality selected by the Central Government to pilot a nuclear power plant using Small Modular Reactor (SMR) technology by 2035.

In implementation of the Prime Minister’s Decision No. 438/QD-TTg regarding the strategy for the development and application of atomic energy for peaceful purposes through 2035, with a vision to 2050, the City People's Committee has issued a comprehensive plan to execute this strategy locally.

By 2030, the city aims to complete and safely operate the Nuclear Science and Technology Research Center in Hang Gon, ensuring synchronized infrastructure such as transportation, electricity, and water to support the project.

Following this, by 2035, Dong Nai intends to have all environmental radiation monitoring stations under its management fully operational. These stations will be integrated into the National Digital Platform and the city’s Intelligent Operations Center (IOC), utilizing Artificial Intelligence (AI) for data analysis and early pollution warnings, as the locality strives to be designated as the nation's pilot site for SMR technology.

Looking toward 2050, Dong Nai aspires to lead the country in high-tech industries, evolving into a premier center for nuclear research, training, and application in both Vietnam and the broader region.

The locality intends to establish itself as an integrated clean energy hub for the Southeast region through a "Hybrid Energy System" model. This system will combine SMRs with renewable energy sources—such as floating solar, biomass, and waste-to-energy—to provide a stable baseload power supply with net-zero emissions, directly serving concentrated digital technology zones and data centers.

To realize these ambitions, Dong Nai will invest in upgrading its automated environmental radiation monitoring network, linking it directly to central authorities and the provincial IOC. The city will also enhance its nuclear incident response plans to address large-scale scenarios, conducting annual drills in coordination with specialized central forces.

Furthermore, the plan includes establishing medical centers capable of specialized treatment for acute radiation syndrome and planning strict management cycles for medical and industrial radioactive waste.

To ensure a skilled workforce, the city will launch academic programs in radiation engineering, nuclear medicine, and environmental law, while upgrading laboratories and enacting policies to attract and retain top-tier talent.

Manufacturing sector ends first half of 2026 with firm growth as PMI holds above no-change mark

2nd July 2026

S&P Global said growth was underpinned by further gains in new orders, which supported a 14th consecutive month of rising output.

HÀ NỘI — The manufacturing sector ended the first half of 2026 on a firm footing, with sustained growth in output and new orders, even as supply-chain pressures and employment weakness persisted, according to S&P Global.

The S&P Global Vietnam Manufacturing Purchasing Managers' Index (PMI) posted 51.8 in June, down from 52.8 in May but still above the 50-point threshold, signalling a continued improvement in the health of the sector, S&P Global said in a news release on July 1.

S&P Global said growth was underpinned by further gains in new orders, which supported a 14th consecutive month of rising output. Production growth in June also accelerated to its fastest pace since February, reflecting stronger underlying demand.

“Growth was maintained in the Vietnamese manufacturing sector during June amid further improvements in new orders and an easing of inflationary pressures,” the report said, adding that purchasing activity also increased during the month.

Firms ramped up input purchases to meet rising production needs, but supply-chain delays continued to weigh on inventories, with input stocks falling sharply during the month.

Input costs continued to rise sharply in June due to material supply shortages and higher transportation costs, but the rate of inflation was much softer than that seen in May and the lowest since the start of the year.

Despite stronger activity, manufacturers reduced staffing levels again in June, highlighting continued caution over labour demand even as workloads increased.

Business confidence improved to a four-month high, supported by expectations of further gains in new orders, product development and capacity expansion. However, sentiment remained below pre-conflict levels seen before recent geopolitical tensions in the Middle East.

Andrew Harker, economics director at S&P Global Market Intelligence, said that employment trends remained a weak spot despite improving output and demand conditions.

Still, the sector entered the second half of 2026 on a positive footing, and should remain in expansion as global conditions is predicted to stabilise in the months ahead.

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