Vietnam Motor Show 2018 makes sales record

16:23 | 13/11/2018 Society

VEN - The Vietnam Motor Show (VMS) 2018 took place in Ho Chi Minh City from October 24-28, attracting 185,000 visitors. During the five-day event, 880 cars were ordered and sold, reflecting growing local demand and signaling opportunities for further investment in the Vietnamese auto market.

vietnam motor show 2018 makes sales record
Vietnam Motor Show 2018 opening ceremony

From standard to luxury

VMS 2018 was a special exhibition marking the first cooperation between the Vietnam Automobile Manufacturers’ Association (VAMA) and the Vehicle Importers Vietnam Association (VIVA). It featured nearly 120 models from 15 renowned automakers, including both domestically assembled and imported cars covering all consumer segments, from standard to luxury, serving diverse customer demand.

VMS 2018 offered visitors a chance to discover various car models, the latest automotive technologies and environment-friendly engines, as well as to discuss new outlooks towards rapid and sustainable growth of the Vietnamese auto market.

Auto firms introduced a variety of environment-friendly technologies at VMS 2018. Lexus, for example, introduced an improved hybrid technology with special advantages in terms of operational capacity, fuel efficiency and exhaust emissions. Toyota introduced its i-ROAD model, which is expected to be a good choice for urban residents in the future. Toyota also pledged to contribute to the sustainable development of the Vietnamese automotive industry by promoting domestic production to increase the local content of products.

VMS also attracted the participation of more than 100 support industry manufacturers and service providers in fields such as banking to meet diverse visitor demand.

Reflecting the resurgence of the local market after a slow start to the year, 880 cars were ordered and sold during the event - a record result.

vietnam motor show 2018 makes sales record
Government officials visit the show

Investment opportunities

Nguyen Ngoc Thanh, Deputy Director of the Ministry of Industry and Trade’s Industrial Department, said the Vietnamese auto market has attracted domestic businesses, such as Truong Hai Auto Corporation (THACO), Hyundai Thanh Cong Vietnam Auto Joint Stock Company, Vingroup, and major auto firms of foreign countries, such as Toyota, Ford, Honda and Mitsubishi.

The manufacturing and assembly capacity of the domestic auto sector stands at about 600,000 vehicles per year, including most types of cars, trucks and buses. The local content ratio of trucks with a tonnage of seven tonnes has reached 55 percent; buses with 24 or more seats: 45-55 percent. Some products have been exported to Laos, Cambodia, Myanmar and Central America. However, Nguyen Ngoc Thanh said, Vietnamese auto firms are largely unfamiliar with Industry 4.0 technologies in manufacturing and software development.

Nguyen Ngoc Thanh added that in the past, cars were distinguished from each other by their engine, gearbox, transmission, steering wheel and fuel, but today, a car is compared to a computer. “It’s possible to say that most creative elements of a modern car are associated with software. Carmakers are aware that auto manufacturing is no longer their inviolable playing field but has become a playing field of technology companies, as well. Many companies that have never been involved in auto manufacturing, such as Google, Tesla, Uber and Apple, have devised plans to develop automatic guided vehicles”, he said.

vietnam motor show 2018 makes sales record

Currently, automotive researchers, designers and manufacturers are focusing on developing technologies for different stages of auto manufacturing: design, hardware production, smart operating software using artificial intelligence, connection and communication technologies. In the era of Industry 4.0, connection and communication technologies are expected to have a strong impact on the automotive industry. In the future, with support of artificial intelligence, smart cars will be able to communicate with each other and be connected with modern facilities and infrastructure systems via the Internet of Things, offering drivers and passengers greater convenience.

Experts believe the Vietnamese smart auto market will attract potential investors in the near future.

Laurent Genet, representative of the Vehicle Importers Vietnam Association:

With a population of more than 90 million, 67 percent of whom are of working age, Vietnam is a strong potential auto

market. Currently, 23 of every 1,000 Vietnamese own cars. However, the travel demand of Vietnamese people is

growing at a rate of 10 percent annually. Given these data, experts believe the number of personal cars in Vietnam

will increase and gradually replace more than 50 million motorcycles currently in use.

Minh Long & Mai Ca