Park Jae-hyuk is a seasoned journalist who has provided comprehensive coverage of South Korea's corporate dynamics, economic policies, industry challenges and the global positioning of Korean companies. Based on the articles he has written since joining The Korea Times in 2016, his investigative approach has helped readers understand corporate governance, economic trends and business strategies shaping South Korea’s economy.
Hyundai Motor, Kia seek to maintain lead in Vietnam
Participants cut a ribbon during the opening ceremony of Hyundai Than Cong Manufacturing Vietnam's second factory in Ninh Binh, Vietnam, in this November 2022 file photo. Courtesy of Hyundai Motor Group
By Park Jae-hyuk
By Park Jae-hyuk
Hyundai Motor and its sister company, Kia, unveiled plans on Wednesday to solidify their lead in the rapidly growing Vietnamese market through the release of new models and sales of popular vehicles.
The announcement was made ahead of Hyundai Motor Group Executive Chair Chung Euisun's upcoming visit to the country, which is ranked fourth in Southeast Asia in terms of automobile production and sales. Chung will accompany President Yoon Suk Yeol on his three-day state visit to Vietnam later this week, as a member of the business delegation.
After establishing a joint venture named Hyundai Thanh Cong Manufacturing Vietnam (HTMV) with Vietnam's Thanh Cong in 2017, Hyundai Motor has produced the Grand i10, Avante, Tucson and Santa Fe in the Vietnamese province of Ninh Binh.
In 2019, HTMV became Vietnam's leading carmaker in terms of sales volume, selling 79,568 vehicles annually, beating Toyota Motor, which sold 79,328 vehicles. As HTMV sold 81,368 vehicles in 2020 and 70,518 vehicles in 2021, it maintained its lead for the third straight year.
Based on the success, Hyundai Motor established another joint venture regarding sales in 2021 and built its second HTMV factory in 2022.
Kia started its operation in Vietnam in 2004 in collaboration with Truong Hai Auto. The carmaker sold 28,986 vehicles in 2018 and 30,103 vehicles in 2019.
In contrast to Toyota Motor, Mazda Motor Corporation, Mitsubishi Motors and Ford Motor, all of which faced declining sales in Vietnam in 2020, as a result of the COVID-19 pandemic, Kia saw a 30.2 percent year-on-year increase in its sales to 39,180 vehicles at the time. In 2022, the Korean firm sold over 60,000 vehicles in Vietnam.
As of May this year, Hyundai Motor took the top spot in sales volume in Vietnam, selling 22,903 vehicles in Vietnam, outperforming Toyota Motor, which sold 21,547 vehicles. Kia has sold 13,951 vehicles in Vietnam during the first five months of this year.
In order to maintain its lead, Hyundai Motor plans to boost sales of the Accent, Creta and Santa Fe, while developing new SUVs and minivans. In addition, it will start the local production of the IONIQ 5 in July to expand its presence in the Vietnamese electric vehicle market. During the second half of this year, the two HTMV factories will begin to produce the IONIQ 5, Venue and Palisade.
Kia also plans to boost the sales of the Sonet, Carnival, Sportage and K3 in Vietnam.
“Hyundai Motor and Kia will continue their efforts to raise their brand awareness and boost sales in the Vietnamese automobile market, which is expected to grow continuously,” a Hyundai Motor Group official said.