Vietnam’s automotive industry is lagging around 30 years behind neighboring countries such as Thailand, Indonesia and Malaysia.

The move is aimed to help develop the automotive supporting industries, particularly as Vietnam still has to import massive basic materials for domestic car production.

Foreign investment in six priority industries under the industrialization strategy accounted for 27% of total registered capital in Vietnam from 2013 to March 2019, focusing on electronics, automobiles and energy saving.

The year of 2019 was a difficult period for Vietnam’s auto market, but also marked positive performances of most local car producers.

Fitch Solutions has forecast that Vietnam's automotive market will remain robust in 2020, as an improved credit outlook and declining vehicle prices all support higher vehicle demand.