VEAM (VEA), the largest automotive company on the Vietnamese stock exchange, faces increasing competitive pressure from VinFast, especially as traditional vehicle sales fell by 6% in the first 11 months of 2025. VinFast continues to lead the electric vehicle market with high sales, decreasing revenues for traditional brands like Honda, Thaco, and Hyundai. Honda’s sales dropped by 3%, Thaco and Mitsubishi fell by 6%, while Ford and Toyota showed healthy growth.
Hanoi and Ho Chi Minh City are preparing to implement green traffic policies by establishing low-emission zones, putting pressure on internal combustion engine vehicles. The demand for hybrid and mini electric vehicles is rising, with the VinFast VF 3 becoming one of the top three best-selling models. Vietcap’s forecast indicates that the market share of traditional cars will continue to shrink due to green transition policies and pressure from electric vehicles.
While Honda increased motorcycle sales by 5%, the new regulations may pose further challenges to the automotive and motorcycle markets.
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