Honda Vietnam Sees 26% Car Sales Growth, Dominates Motorcycle Market

Honda Vietnam recorded robust growth in May, with automobile sales increasing by 26% year-on-year to 1,870 units. In contrast, motorcycle sales declined by 3.9% year-on-year to 169,976 units, though the company remains a dominant force in this segment. The company is progressing with its plan for all newly manufactured and distributed internal combustion engine motorcycles to meet Euro 4 emission standards from fiscal year 2027 (April 1, 2026, to March 31, 2027), aligning with the government's emissions control roadmap. Furthermore, Honda Vietnam has called for reduced registration fees for hybrid vehicles, capped at 50% of the level applied to internal combustion engine vehicles of the same category. The company also seeks stronger support for supporting industries and higher localization rates in electric motorcycle production. Environmental regulations are becoming a significant focus for Vietnam's automotive industry. Growing international demand for stricter food safety, quality, and traceability standards is also impacting agricultural exports. By 2030, the goal is for all concentrated agricultural, forestry, and fisheries production areas to have access to essential services, including product traceability, quarantine, testing, quality certification, processing, and market development. Vietnam's automotive market is expected to maintain its growth momentum through the remainder of 2026, driven by competitive auto loan interest rates, stable vehicle supply, and an increasingly diverse product range. SUVs, MPVs, and hybrid vehicles are anticipated to be the main drivers of overall market sales. According to KFME President Song Chi Young, Vietnam's young population, dynamic market, and significant growth potential are an ideal fit for the strengths that Korean micro-businesses bring in K-brands, technology, and service expertise. To convert these opportunities into growth, improving the investment climate, upgrading logistics and energy infrastructure, accelerating digital transformation, and developing a highly skilled workforce are crucial for Vietnam. Additionally, Gia Lai province is positioning ESG as a pillar for building competitive advantages and achieving sustainable development, recognizing it as an essential requirement for accessing global capital. Developed under a strategic cooperation agreement between the Vietnamese and Japanese governments, a nearly 1,000-hectare industrial park is expected to become the city's first eco-industrial park under the country's new regulatory framework. The magazine reported that the VF 2, retailing at 188 million VND (USD 7,200) with the battery included, is one of the most affordable electric cars in the Vietnamese market. Vietnam Airlines stated that weather-related schedule changes are unavoidable and are made to ensure the safety of passengers and crew. A facility built on nearly 20 hectares at Huu Thanh Industrial Park is the company's largest and most advanced plant in Vietnam, and the biggest production site in Suntory PepsiCo's Asian manufacturing network. The factory has a designed annual production capacity of over 1.24 billion liters and is equipped with highly automated production, filling, and warehousing systems. With its enlarged development space, Ho Chi Minh City now combines strengths in urban development, industry, and services with high-tech agriculture, the marine economy, logistics, and diverse ecological areas. These conditions provide an ideal testing ground for UAV applications in urban management, land administration, environmental monitoring, disaster prevention and response, agriculture, logistics, and public services. Projects with a combined investment of around 12 trillion VND (approximately USD 460 million) include the expansion and upgrading of Provincial Roads DT769 and DT773, along with the construction of DT770B, all expected to play a strategic role in the region's transport network. The city's tourism sector continues to benefit from expanding air connectivity. In the first six months of this year, Da Nang welcomed nearly 9.77 million overnight visitors, up 22% year-on-year. International tourist arrivals exceeded 5.16 million, an increase of 28%. The Vietnam Association of Motorcycle Manufacturers (VAMM) announced on July 10 that its five member companies sold 638,431 motorcycles in the second quarter, up 4.4% from the same period last year. Despite headwinds from Middle East tensions that have pushed up freight and logistics costs, exports of wood and wood products were estimated at USD 1.53 billion in June, lifting first-half export turnover to USD 8.54 billion, up 4.4% from a year earlier, according to the Ministry of Agriculture and Environment (MAE). Despite the encouraging performance, Vietnam's exports remain heavily dependent on a limited number of major markets and product groups, while the domestic value added of many export products remains relatively low due to their reliance on imported raw materials and components. Speaking at the city's regular socio-economic press briefing on July 9, Deputy Head of the Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA) Tran Viet Ha said that foreign direct investment (FDI) accounted for nearly USD 1.6 billion of the total, including 65 newly licensed projects worth more than USD 867 million and 83 existing projects that added over USD 707 million in registered capital. With the current trading band of +/- 5%, the ceiling rate applicable for commercial banks during the day is 26,475 VND/USD, and the floor rate is 23,953 VND/USD. The initiative marks a shift from traditional investment promotion toward a digital ecosystem that standardizes information and provides transparent connections with investors worldwide. Textile and seafood exporters are struggling to retain enough workers to meet recovering export demand, underscoring a shift in constraints from demand to workforce capacity.