NEW YORK, May 31, 2024 /PRNewswire/ — The truck market size in Vietnam is estimated to grow by USD 1.50 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 8.05% during the forecast period.
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Forecast period |
2024-2028 |
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Base Year |
2023 |
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Historic Data |
2018 – 2022 |
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Segment Covered |
Vehicle Category (Less than 10 T and More than 10 T), Type (Domestic and Imported), Product Type (Manual and Automatic), and Geography (APAC) |
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Region Covered |
Vietnam |
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Key companies profiled |
AB Volvo, Beijing Automotive Group Co. Ltd., Daimler Truck AG, Ford Motor Co., General Motors Co., Honda Motor Co. Ltd., Hyundai Motor Co., Isuzu Motors Ltd., Kamaz Export, Kia Motors Corp., Mazda Motor Corp., Mitsubishi Corp., Nissan Motor Co. Ltd., Scania AB, Stellantis NV, Tan Chong Motor Holdings Berhad, Tata Motors Ltd., Toyota Motor Corp., and Vtruck |
Key Market Trends Fueling Growth
The increasing environmental concerns have led major countries to establish emission regulations for vehicles, particularly commercial ones. These regulations aim to decrease greenhouse gas and pollutant emissions. In response, manufacturers are exploring eco-friendly alternatives, such as electric, hybrid-electric, fuel cell, and propane-fueled trucks.
These options offer various benefits, including reduced fuel consumption and lower emissions. The availability of these alternative fuel trucks is anticipated to boost the growth of the truck market in Vietnam during the forecast period.
The truck market in Vietnam is experiencing significant growth, driven by the country’s economic development and increasing demand for transportation. EVs, or electric vehicles, are becoming a trend in the industry, with companies like (EV) introducing new models. Heavy duty trucks, consignment trucks, and container trucks are popular choices for businesses in various sectors, including construction, logistics, and manufacturing. OEMs, or original equipment manufacturers, such as Volvo and Mercedes-Benz, are among the key players in the market.
The sector is also witnessing the adoption of technologies like fuel efficiency and safety features. The government’s efforts to improve infrastructure and ease regulations are further boosting the market. Overall, the truck market in Vietnam is poised for continued growth in the coming years.
Market Challenges
- Medium- and heavy-duty truck manufacturing in Vietnam involves high costs due to precise component production and expensive raw materials like stainless steel and cast iron. Prices of these materials and adoption of new technologies further increase expenses. OEMs face reduced profit margins, and continuous maintenance adds to the total cost of ownership. These factors may lead to price increases, potentially decreasing new truck sales during the forecast period.
- In Vietnam’s truck market, several challenges exist. Delivery trucks face difficulties in reaching certain areas due to poor infrastructure and narrow roads. Trucking companies encounter difficulties in finding skilled drivers and maintaining their vehicles due to the high demand for transportation services. The cost of fuel and maintenance is also a significant challenge for many operators.
- Additionally, the market is competitive, with many players vying for market share. Logistics and supply chain management are complex issues that need to be addressed to ensure efficient and timely delivery of goods. The use of technology, such as GPS tracking and automation, can help overcome some of these challenges.
- However, the high initial investment required for such technology can be a barrier for smaller operators. Overall, the trucking industry in Vietnam presents both opportunities and challenges that need to be addressed to ensure sustainable growth.
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Segment Overview
- Vehicle Category
- 1.1 Less than 10 T
- 1.2 More than 10 T
- 2.1 Domestic
- 2.2 Imported
- 3.1 Manual
- 3.2 Automatic
1.1 Less than 10 T- In Vietnam, the less than 10-ton segment of the truck market is experiencing growth due to the increasing use of light-duty trucks for logistics operations. These trucks, including compact trucks, pickup trucks, and vans, are essential for transporting time-critical and high-value goods in urban areas. Dealers serve as the primary distribution channel for these vehicles. Economic uncertainty and competition are driving fleet owners to opt for lighter, more cost-effective trucks. The rise in home delivery services and traffic congestion further boosts demand for light-duty trucks in Vietnam.
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Research Analysis
The Truck Market in Vietnam is experiencing significant growth, driven by the increasing demand for transportation in various sectors such as warehouses, retail outlets, and e-commerce. The market encompasses a wide range of vehicles, including pickup trucks and powerful vehicles, which are essential for moving goods from one place to another. Fuel efficiency and safety are key considerations for consumers in this market, leading to the increasing popularity of electrification and trailer tracking in the logistics industry.
Vehicle emissions and safety are also major concerns, with a focus on improving suspension systems to ensure a smoother ride on Vietnam’s roads. The market for cargo transportation is also influenced by the need for efficient supply chain systems and the increasing demand for fuel-efficient trucks in the rapidly developing economy.
Market Research Overview
In Vietnam’s thriving truck market, various types of trucks cater to diverse industries and transportation needs. These include flatbed trucks, container trucks, and tipper trucks, among others. The market is driven by the country’s robust economic growth, increasing infrastructure development, and expanding trade activities. The demand for trucks is particularly high in sectors like construction, manufacturing, agriculture, and logistics.
Additionally, the government’s focus on improving the transportation sector through modernization and digitization initiatives further boosts the market. The market is expected to continue its growth trajectory, offering significant opportunities for stakeholders.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Vehicle Category
- Less Than 10 T
- More Than 10 T
- Type
- Domestic
- Imported
- Product Type
- Manual
- Automatic
- Geography
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
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SOURCE Technavio
