HCMC — Over 980 booths and more than 400 exhibitors from 16 countries and territories are participating in an auto industry trade show in HCMC, highlighting Vietnam’s growing appeal as an automotive market and investment destination.
Automechanika HCMC 2025 opened on June 19 at the Saigon Exhibition and Convention Center (SECC), featuring a wide range of innovations from the automotive service industry. Running through June 21, the event includes both the international trade show for automotive services and the original equipment and aftermarket parts exhibition.
This year’s exhibition brings together companies from China, Germany, Hong Kong, India, Japan, South Korea, the U.S., Vietnam, and others. The event features over 980 booths and covers various sectors including components, electronics, repair and maintenance, lubricants, fuels, and recreational vehicles.
According to Vu Ba Phu, head of the Vietnam Trade Promotion Agency under the Ministry of Industry and Trade, the country’s automobile market is projected to grow by 12% in 2025 compared to 2024. He attributed this to Vietnam’s dynamic economy, rising per capita income, and increasing demand for personal vehicles.
Government-led investments in major transport infrastructure projects are also accelerating the sector’s development, improving logistics efficiency and lowering transportation costs for automotive businesses.
However, Phu emphasized that to enhance Vietnam’s position in the global automotive map, boosting domestic production capacity and competitiveness is crucial. The development of supporting industries must go hand in hand with the growth of the auto sector.
The Government aims for locally produced components to meet 55% to 60% of domestic demand by 2030, and up to 80% to 85% by 2045. Yet, localization remains a challenge, despite earlier targets of 30% to 40% localization in nine-seat vehicles by 2020, as actual rates have only reached 12% to 20%.
Phu noted the need for greater technological adoption to produce core components such as drivetrains, gearboxes, engines, and car bodies. Increasing the localization rate not only reduces costs and improves competitiveness but also generates thousands of high-quality jobs and supports economic growth.
He also warned that Vietnam’s auto industry faces growing regional competition, particularly from China and Thailand, stressing the need for policy support aligned with global technological trends.
