Chinese carmakers are increasing shipments to Vietnam as they seek to expand their market presence and establish their brands in the country.

According to data from Vietnam's Customs Department, imports of completely built-up (CBU) vehicles in April 2026 declined by 34.35% from the previous month. China was the largest source, ahead of Thailand and Indonesia.

However, ASEAN remained Vietnam's largest overall source of imported vehicles during the first four months of the year. Indonesia was the largest exporter to Vietnam, with imports rising 13.61% year-on-year, while imports from Thailand declined by 25.56%.

Imports from China increased significantly during the period. During the first four months of 2026, Vietnam's vehicle imports from China rose by 68.61% compared with the same period in 2025. Despite this increase, industry data indicates that around 13 Chinese automotive brands are currently operating in Vietnam.

This indicates that sales have absorbed only around half of imported volumes. Combined with inventory carried over from last year, this has resulted in manufacturers offering ongoing discounts to reduce inventory levels.

Tran Thanh Nguyen, owner of a car showroom in Ho Chi Minh City, said manufacturers need to continue introducing new models to attract buyers. As a result, older vehicles remain difficult to sell, even when discounted by hundreds of millions of Dong.

Industry sources note that China has hundreds of automotive brands and production capacity measured in tens of millions of vehicles annually. Excess supply and large inventories are prompting manufacturers to expand exports into overseas markets, including Vietnam.

A dealership owner in Ho Chi Minh City predicts that imports may temporarily slow in June and July 2026 before increasing towards the end of the year, when volumes could potentially double compared with those recorded during the early months of the year.

According to Hoang Huu Doan, Sales Director of a showroom in Ho Chi Minh City, brands such as BYD, Omoda, Jaecoo, and Geely are investing in marketing and expanding their dealer networks across Vietnam. He said the large volume of imported vehicles may also form part of a broader brand-development strategy.

"The large-scale influx of vehicles may be intended to establish a strong market presence. Whether those vehicles are ultimately sold is another matter," he said.

Meanwhile, Vo Minh Luc, Chief Executive of Auto BYD Vietnam, said that Vietnam's automotive market continues to record growth, particularly in the electric vehicle segment, as global markets move towards lower-emission transportation. In response, the company has expanded its product portfolio to include petrol, hybrid, and battery-electric vehicles.

Tran Nam Thang, Deputy General Director of SAIC Motor Vietnam, said that Chinese vehicles have improved in quality and are becoming more competitive with Japanese and Korean rivals, although consumer scepticism remains a challenge.

According to him, manufacturers will need to expand nationwide service and warranty networks and eventually establish local assembly plants in Vietnam to address consumer concerns.