Vietnam Commercial Vehicle Market size was valued at USD 3.07 billion in 2022 which is expected to reach USD 5.84 billion in 2030 with a CAGR of 8.37% for the forecast period between 2023 and 2030. The Vietnam commercial vehicle market has experienced significant growth and transformation in recent years. Vietnam is one of the fastest-growing economies in Southeast Asia; increasing industrialization and urbanization have been key drivers behind the surging demand for commercial vehicles in the region. The expansion of the e-commerce and logistics sectors, driven by a rising middle class and changing consumer behaviour, has further fuelled the need for efficient and reliable transportation solutions. Moreover, the government’s infrastructure development initiatives and investments in road and transportation networks have created opportunities for commercial vehicle manufacturers and suppliers to meet the growing demand.
Innovation has also played a crucial role in shaping the Vietnam commercial vehicle market. With a growing awareness of environmental concerns, there has been a notable shift towards adopting greener and more sustainable transportation options. Electric commercial vehicles (ECVs) have gained traction, spurred by advancements in battery technology and the government’s support through incentives and policy measures promoting electric mobility. Additionally, the market has witnessed innovations in connectivity and telematics solutions, enhancing fleet management and operational efficiency. Digital platforms and online sales channels have facilitated easier access to commercial vehicles, streamlining the buying process for businesses.
For instance, in 2023, The Toyota Vellfire Executive Lounge offers advanced technology and telematics features. It includes a sophisticated infotainment system with touchscreen controls, smartphone integration, and advanced driver assistance systems. Telematics capabilities enable remote vehicle monitoring and connectivity for a seamless driving experience.
Demand Call from Electric Commercial Vehicles
The Vietnam commercial vehicle market is poised for growth, primarily driven by the rising demand for electric commercial vehicles (ECVs). The shift towards electrification is gaining momentum as businesses recognize the benefits of sustainable transportation solutions. ECVs offer reduced carbon emissions, lower operating costs, and enhanced energy efficiency, making them an attractive option for fleet owners and logistics companies. Government initiatives promoting electric mobility, such as subsidies, tax incentives, and infrastructure development, further propel the market’s expansion.
Additionally, advancements in battery technology and charging infrastructure are overcoming the barriers to widespread adoption of ECVs. As a result, the Vietnam commercial vehicle market is expected to witness a surge in demand for electric alternatives, revolutionizing the transportation landscape with clean and efficient solutions. For instance, in 2023, the Proterra Catalyst 40-Foot Bus is a state-of-the-art electric vehicle specifically designed for public transportation. With zero-emission operation, a 40-foot length, and advanced charging technology, it provides a sustainable and efficient solution for urban transit, reducing environmental impact and improving overall transportation sustainability.
Growing Demand for Used Commercial Vehicles
The Vietnam commercial vehicle market is witnessing a surge in demand for used commercial vehicles. This increasing trend can be attributed to several factors. Firstly, used commercial vehicles provide a cost-effective solution for businesses, especially small and medium enterprises, looking to expand their fleets or replace existing vehicles within limited budgets. Secondly, the availability of used commercial vehicles offers a wider range of options to buyers, allowing them to choose from different makes, models, and configurations based on their specific operational needs. Furthermore, the growth in e-commerce and logistics sectors has stimulated the need for reliable transportation, leading to a higher demand for used commercial vehicles. Lastly, the market for used vehicles promotes sustainability by prolonging the lifespan of vehicles and reducing waste.
Overall, the growing demand for used commercial vehicles presents an opportunity for buyers to acquire affordable and suitable options for their business requirements in Vietnam.
Advancement in Technology
The Vietnam commercial vehicle market has witnessed significant technological advancements in recent years, revolutionizing the industry. One of the prominent advancements is the adoption of electric and hybrid technologies, providing eco-friendly alternatives to traditional fuel-powered vehicles. Moreover, there has been a remarkable integration of smart and connected technologies, such as telematics and GPS tracking systems, enhancing fleet management efficiency, and enabling real-time monitoring of vehicle performance and logistics operations. Advancements in vehicle safety systems, including advanced driver assistance systems (ADAS), have improved road safety and reduced accident rates. Additionally, manufacturers are incorporating lightweight materials and aerodynamic designs to enhance fuel efficiency and reduce emissions.
The rise of autonomous vehicle technology is also on the horizon, holding the potential to transform the logistics landscape further. These technological innovations drive the Vietnam commercial vehicle market towards a more sustainable, efficient, and connected future. For instance, in 2022, The Toyota Hilux STD is a pickup truck that has seen technological advancements over the years. It now incorporates features such as advanced safety systems, touchscreen infotainment, smartphone connectivity, and improved fuel efficiency, enhancing the overall driving experience and functionality of the vehicle.
Impact of COVID-19
The COVID-19 pandemic had a significant impact on the Vietnam commercial vehicle market. During the initial stages of the outbreak, the market experienced a sharp decline in demand as economic activities slowed down, supply chains were disrupted, and businesses faced uncertainties. Lockdowns and movement restrictions further dampened sales and production activities. The transportation and logistics sectors were particularly affected as trade volumes decreased. However, as the situation improved and restrictions eased, there was a gradual recovery in the commercial vehicle market. The pandemic also accelerated the adoption of digital technologies in the industry, such as online vehicle sales and contactless services. Additionally, there was an increased focus on last-mile delivery services, which boosted demand for smaller commercial vehicles. Overall, the Vietnam commercial vehicle market demonstrated resilience and adaptability in response to the COVID-19 challenges.
Impact of Russia-Ukraine War
Due to its geographical distance from the conflict, the Russia-Ukraine war had a limited impact on the Vietnam commercial vehicle market. However, there might have been some indirect effects, particularly in terms of global economic uncertainties and fluctuations in commodity prices. The conflict could have influenced international trade dynamics and led to fuel price fluctuations, affecting commercial vehicle operating costs. Additionally, disruptions in global supply chains might have impacted the availability and cost of vehicle components and raw materials. Nevertheless, the overall impact on the Vietnam commercial vehicle market is likely more modest than regions closer to the conflict zone.
Report Scope
Vietnam Commercial Vehicle Market Assessment, Opportunities and Forecast, 2016–2030F”, is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative & quantitative assessment of the current state of the commercial vehicle market in Vietnam, industry dynamics and challenges. The report includes market size, segmental shares, growth trends, COVID-19 and Russia-Ukraine war impact, opportunities and forecast between 2023 and 2030. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
Report Attribute
Details
Base Year of the Analysis
2022
Historical Period
2016–2021
Forecast Period
2023–2030
Projected Growth Rate
CAGR of 8.37% between 2023 and 2030
Revenue Forecast in 2030
USD 5.84 billion
Units
Revenue in USD billion
Segments Covered
By Vehicle, By Type, Fuel Type, End-user
Regions Covered
Northern, Central, Southern
Key Companies Profiled
AB Volvo, Mercedes-Benz Vietnam Pte. Ltd., Ford Motor Co., Nissan Motor Co. Ltd., Honda Vietnam Company, Hyundai Motor Company, Toyota Motor Vietnam Co., Ltd., UD Trucks Vietnam, Isuzu Vietnam Co., Ltd, Mitsubishi Motors Vietnam
Customization Scope
15% free report customization with purchase
Pricing and Purchase Options
Avail the customized purchase options to fulfil your precise research needs
Delivery Format
PDF and Excel through email (subject to the license purchased)
In this report, Vietnam Commercial Vehicle Market has been segmented into the following categories:
1. By Vehicle Type
1.1. Light Commercial Vehicle
1.2. Medium Commercial Vehicle
1.3. Heavy Commercial Vehicle
2. By Type
2.1. Trucks
2.1.1.Semi-Trucks
2.1.2.Box-Trucks
2.1.3.Pickup-Trucks
2.1.4.Fire Trucks
2.1.5.Others
2.2. Vans
2.2.1.Step Vans
2.2.2.Cargo Vans
2.2.3.Passenger Vans
2.3. Cars
2.3.1.Rental Cars
2.3.2.Taxi
2.3.3.Delivery Vehicles
2.4. Special
2.4.1.Passenger Trolleys
2.4.2.RV-Style Mobile Services
2.5. Others
3. By Fuel Type
3.1. Petrol
3.2. Diesel
3.3. Electrically- Chargeable (ECV)
3.4. Hybrid Electric (HEV)
3.5. Others
4. By Application
4.1. Logistics
4.2. Construction
4.3. Mining
4.4. Agriculture
4.5. Others
5. By Region
5.1. Northern
5.2. Central
5.3. Southern
Key Players Landscape and Outlook
The Vietnam commercial vehicle market boasts a competitive landscape with key players vying for market share. Renowned international manufacturers like Toyota, Ford, and Isuzu have a strong presence, leveraging their brand reputation and advanced technologies to cater to diverse customer demands. Domestic companies, such as VinFast and Thaco, have also made significant strides, offering localized solutions and competitive pricing. The market outlook remains promising as economic growth, urbanization, and the e-commerce boom drive demand for commercial vehicles. With an increasing focus on sustainability and technological advancements, the players that can adapt and innovate are poised to capitalize on the market’s growth potential.
For instance, in 2022, Vietnam, Thailand, South Africa, and Australia have been identified as one of the four key markets for Ford Motor Company. This recognition positions Vietnam as a pivotal market for the growth and advancement of Ford Vietnam in the forthcoming years.
Vietnam’s economic scene is in motion, and at the core of this advancement is the flourishing commercial vehicle market. With robust industrial development and a surge in trade activities, the demand for commercial vehicles is experiencing significant growth. This blog post delves into the size and dynamics of Vietnam’s commercial vehicle market, exploring the key factors contributing to its expansion.
The Engine Behind Economic Growth: Commercial vehicles play a pivotal role in shaping Vietnam’s economic landscape. From transporting goods to supporting various industries, these vehicles form the backbone of logistics and business operations nationwide.
Factors Fueling Market Growth:
*1. Swift Industrialization: The rapid industrialization in Vietnam is fueling the demand for efficient transportation of raw materials and finished goods. Commercial vehicles, spanning from trucks to vans, are in high demand to facilitate seamless logistics.
*2. Infrastructure Advancements: Ongoing infrastructure projects, such as road and highway expansions, are creating a conducive environment for the growth of the commercial vehicle market. Improved connectivity enhances the efficiency of transportation networks.
*3. E-Commerce Surge: The flourishing e-commerce sector is amplifying the demand for commercial vehicles for last-mile deliveries. As online shopping becomes increasingly prevalent, the need for a reliable and expansive delivery network is growing.
*4. Support for the Agricultural Sector: Commercial vehicles are indispensable for the agricultural sector, aiding in the transportation of produce from farms to markets. The agricultural boom in Vietnam further propels the demand for specialized vehicles.
Market Size and Forecast: The commercial vehicle market in Vietnam is witnessing substantial growth, with a projected expansion attributed to several key factors:
*1. Trade Expansion: Vietnam’s active participation in international trade and the growing export-oriented industries contribute to an increased demand for commercial vehicles, particularly for the transportation of goods to ports and distribution centers.
*2. Government Initiatives: Supportive government policies and initiatives, including incentives for fleet modernization and logistics efficiency, are bolstering the commercial vehicle market.
*3. Urbanization and Construction Projects: As urbanization progresses and construction projects proliferate, the demand for commercial vehicles for the transportation of construction materials and equipment is set to rise.
*4. Technological Advancements: The integration of advanced technologies, such as telematics and fuel-efficient systems, is enhancing the appeal of modern commercial vehicles, driving replacement and upgrade cycles.
Challenges and Opportunities:
*1. Environmental Considerations: Rising environmental concerns pose challenges for the commercial vehicle market. However, this also opens opportunities for companies to develop and adopt eco-friendly and electric commercial vehicles.
*2. Infrastructure Challenges: Addressing infrastructure challenges, including road conditions and transportation network gaps, presents opportunities for companies to offer innovative solutions and improve overall efficiency.
Vietnam’s commercial vehicle market is steering the nation’s economic progress, connecting industries and supporting trade activities. As the demand for efficient transportation solutions co
ntinues to rise, the market’s growth is poised to contribute significantly to the country’s overall economic development. The future promises a dynamic landscape for commercial vehicles in Vietnam, with innovation and strategic initiatives driving the industry forward. Here’s to the road ahead — a journey of growth and prosperity fueled by the wheels of commercial vehicles.
Key Players Operating in Vietnam Commercial Vehicle Market
· AB Volvo
· Mercedes-Benz Vietnam Pte. Ltd.
· Ford Motor Co.
· Nissan Motor Co. Ltd.
· Honda Vietnam Company
· Hyundai Motor Company
· Toyota Motor Vietnam Co., Ltd.
· UD Trucks Vietnam
· Isuzu Vietnam Co., Ltd
· Mitsubishi Motors Vietnam
Contact
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The global commercial vehicles market size is expected to reach USD 2.27 trillion by 2025, according to a study conducted by Grand View Research, Inc.
The market is projected to expand at a CAGR of 7.1% during the forecast period.
Increased urbanization, coupled with rising spending on infrastructure development in emerging economies such as China, India, and Turkey, are expected to drive the market over the forecast period.
Several suppliers are shifting their focus on improving R capabilities while enhancing operational efficiency, which is also projected to play a pivotal role in boosting market growth.In addition, increasing penetration of electric commercial vehicles is also anticipated to contribute toward market expansion over the coming years.
Adoption of electric vehicles (EVs) is primarily driven by need to meet emission reduction standards and regulations enforced by government bodies worldwide.
Commercial vehicle telematics is another trend that is gaining traction and is anticipated to have a positive impact on the market over the forecast period.To meet changing market needs, original equipment manufacturers (OEMs) across the globe are focusing on integrating innovative technologies, such as keyless entry/ignition, engine diagnostics, mobile connectivity, and an array of novel applications that assist in vehicle control.
