Sales Statistics Reveal Market Challenges

The Vietnam vehicle market experienced a 9% decline in February 2026, with total sales dropping to 15,665 units from 17,181 units in the previous year. This downturn, reported by the Vietnam Automotive Manufacturers Association (VAMA), was attributed to the Lunar New Year holidays, which resulted in fewer working days compared to February 2025.

Despite the setback in February, the overall market showed resilience in the first two months of the year, with an impressive 38% growth to 45,439 units from 32,857 units year-on-year. January 2026 alone saw a remarkable surge with 29,774 units sold, indicating a robust start to the year fueled by strong economic factors.

Market Dynamics and Exclusions

It’s important to note that VAMA’s sales data does not encompass key players in the market, including VinFast, Hyundai, and Mercedes-Benz. The reported figures only reflect the performance of member companies, which may not provide a complete picture of the vehicle landscape in Vietnam.

In February, VAMA sales included 19,278 units, with passenger cars accounting for 12,376 units. However, these numbers reflect a steep month-on-month decline of 48%, highlighting the seasonal impact of the holidays. Domestic assembly faced significant challenges, with a 49% drop, while imported vehicles also saw a substantial decrease.

Economic Context Underpinning Sales Trends

The vehicle market’s fluctuations come against a backdrop of notable economic growth. Vietnam’s GDP expanded by 8% in 2025, driven by robust domestic consumption and exports. The fourth quarter of 2025 saw a remarkable acceleration to 8.5% year-on-year, marking the fastest growth rate in 15 years, which contributed to the overall positive trajectory of vehicle sales.

Despite the February dip, the economic landscape remains promising. The growth in vehicle sales during January and the overall two-month performance indicates a strong market recovery, buoyed by consumer confidence and increasing mobility demands.

Future Outlook and Industry Implications

The decline in February underscores the seasonal risks that manufacturers face due to holiday timing. However, the year-to-date growth signals that the industry is poised for a recovery, supported by a favorable economic climate and new model introductions. VAMA’s outlook for 2026 remains positive, anticipating continued demand for mobility solutions as the economy stabilizes.

Challenges remain, particularly with the entry of competitive Chinese brands and the data gaps caused by non-member exclusions. Despite these hurdles, the outlook for the Vietnamese automotive market suggests resilience and potential for significant recovery throughout the year, especially with the expected increase in new model launches.