INDIVIDUAL

ASSINMENT
MARKET ANALYSIS & MARKET
RESEARCH: Mitsubishi Motors Vietnam

Name: Đinh Trang Linh

Student ID: HS153055
Class: IB1603-LOG
Lecturer: Trịnh Thị Chung

1
TABLE OF CONTENTS

I. INTRODUCTION .................................................................................................................................3
II. THE CURRENT CONDITION OF THE VIETNAMESE AUTOMOBILE INDUSTRY ..................3
III. THE CURRENT COMPETITIVE POSITION OF MITSUBISHI VIETNAM IN THE
AUTOMOBILE INDUSTRY ...................................................................................................................5
1. Overview of Mitsubishi Motor Vietnam ...................................................................................5
2. SWOT analysis ............................................................................................................................7
IV. COMPETITOR ANALYSIS OF MITSUBISHI VIETNAM .......................................................... 10
V. CONCLUSION ................................................................................................................................. 11
VI. REFERENCE.................................................................................................................................. 12

2
I. INTRODUCTION

The year 2023 is forecasted by many experts to be a challenging year for the world economy.
But for the auto industry in Vietnam, the growth potential is still high, and it is a "promising
land" for foreign direct investment (FDI) [1]. Established in 1994 as a distributor of Mitsubishi
Motors, Mitsubishi Motor Vietnam Co., Ltd. is one of the first joint venture automobile
manufacturing companies in Vietnam [2]. Now, the business has a reputable name in vehicle
assembly, import, and distribution in Vietnam. In a collaboration with Mitsubishi Motors
Vietnam, this research investigates the present state of the Vietnamese automobile industry and
Mitsubishi Motors Vietnam's position in relation to rivals throughout the sector.

II. THE CURRENT CONDITION OF THE VIETNAMESE AUTOMOBILE INDUSTRY

Buying a car is an investment worth considering for Vietnamese people. However, with the
growing economy, more and more Vietnamese are able to own the desired cars. Just one-tenth
as many automobiles are owned per 1,000 persons in Vietnam as in Malaysia and Thailand. The
Vietnamese car market, however, is expanding at the second-highest rate in the region [1].

The auto sales in 2020 and 2021 suffered a serious decline due to the COVID-19 pandemic, but
as the pandemic situation improved, the auto market has shown positive signs of recovery in the
last year.

The Vietnam Automobile Manufacturers Association (VAMA) estimates that in 2022, the
Vietnamese auto market will have sold 358,063 automobiles, up 29% from 2021. In comparison
to 2021, passenger cars increased by 40%, commercial vehicles increased by less than 0.1%,
and special-purpose vehicles increased by 2% [4]. The sales announced by VAMA above do
not include the 81,582 Hyundai cars sold [5], the more than 18,000 vehicles sold in the first 8
months of VinFast [6]. It is not difficult to see that the total number of cars consumed in 2022
in Vietnam has reached more than 500,000 vehicles, not to mention the sales contributions of
many individual car manufacturers that keep business results secret such as Audi, Jaguar-Land
Rover , Mercedes-Benz, Subaru, Volkswagen, Volvo…

In fact, according to experts, the consumption power of the Vietnamese auto market in 2022
may be even greater than 508,545 vehicles if it is not affected by the breakdown of the
component supply chain and the severe chip shortage that occurred in the first half of the year
[7]. Reaching the milestone of 500,000 cars sold is not only a new record in sales, but it also
shows that Vietnam is gradually becoming one of the major automobile markets in the region

3
(ranked 4th after Thailand), Indonesia and Malaysia) [8].

Of the 404,635 vehicles sold by VAMA members in 2022, sales of locally assembled cars
reached 226,487 vehicles, up 30% over the same period in 2021. Meanwhile, imported cars were
178,148 units, up 37 %. Data from VAMA shows that the volume of imported CBU cars
accounts for a significant proportion of the total volume sold in the market. From 2019 to now,
imported cars account for 33-39% of total vehicle sales [4].

4
Since October 1, 2022, the regulations on calculating the localization rate of cars have been
abolished [9]. This has made it possible for the domestic auto sector to gradually catch up with
global trends by expanding facilities and assembly lines. Particularly, more and more companies
are funding domestic auto manufacturing.

According to the forecast of the Ministry of Industry and Trade, Vietnam's automobile market
will reach a scale of 700,000–80,000 vehicles per year by 2025 and over 1 million vehicles per
year by 2030 [10]. Notably, VinFast intends to produce a large quantity of electric vehicles for
both the domestic market and global export, while TC Motor recently opened a new production
facility and a second auto assembly in Ninh Binh, bringing the total capacity to 180,000 vehicles
to meet both domestic and international demand. Not to add, a number of brand-new
automakers, like Skoda and Cherry, have joint venture plans with domestic partners to construct
automobiles in the years to come, emonstrating the trend of shifting auto production from
ASEAN nations to Vietnam. has no doubt [8].

III. THE CURRENT COMPETITIVE POSITION OF MITSUBISHI VIETNAM IN THE

AUTOMOBILE INDUSTRY
1. Overview of Mitsubishi Motor Vietnam

Mitsubishi Motors Vietnam was founded in 1994 as a joint venture by TRACIMEXCO, Proton,
Mitsubishi Corporation, and Mitsubishi Motors Corporation. Mitsubishi Motors Vietnam has
been active in the Vietnamese market from the early years of the doi moi period. Vina Star
Motors was the name of the business at the time. The business introduced a number of well-

5
known models between 1994 and 2018 including the Jolie, Grandis, Triton, Pajero Sport,
Mirage, and Attrage [11].

The firm sold over 45,000 automobiles in Vietnam overall as of 2014. Despite owning Japanese-
quality vehicles with good performance and durability, due to fierce competition from other
automakers, the car design is still considered simple and outdated. produce a positive impact on
users. Also, the distribution network (NPP) is still rather small and marketing efforts are not
particularly prominent [11].

In 2015, the company officially changed its name to Mitsubishi Motors Vietnam (MMV) and
made a series of strategic changes from products to business activities in Vietnam. In January
2018, the first Outlander assembled in Vietnam was shipped. In the next 4 years, the company
continuously upgraded and launched new car lines, diversifying the product range to meet the
needs of customers. The positive changes have helped the company join the list of car
manufacturers with the highest sales in the Vietnamese market. As of 2022, Mitsubishi Motor
Vietnam has sold 39,861 vehicles of all kinds, up 46% compared to 2021. At the same time, it
accounts for 11.1% of the country's automobile market share (taking the 4th place after Toyota,
Hyundai, and Thaco Kia). [4].

6
 2. SWOT analysis

Strengths
Competitive advantage thanks to low prices. Owns an assembly plant in Di An, Binh Duong. In
Viet Nam. Mitsubishi is assembling popular models such as Outlander and Xpander that bring
competitive advantages in price [2]

Breakthrough in design. Since its launch in 2016, the Dynamic Shield design has brought a
modern, fresh, and powerful feeling. This design has received high praise from experts and
quickly won the love of Vietnamese consumers [13].

Advanced technology. RISE (Reinforced Impact Safety Evolution) technology not only helps
protect the driver, but also protects all passengers in the vehicle regardless of position. The front
and rear end of the car has an enhanced design to help absorb and disperse the force, minimizing
the impact in the event of a collision. Meanwhile, the bodywork is reinforced with many super-
strength steel materials that both increase rigidity and reduce the overall weight of the body,
making the car flexible when driving. The MIVEC engine provides variable valve timing,
adjusting the intake and exhaust valves independently to increase engine power, save fuel and
reduce emissions [13].

Distribution strengths. Mitsubishi Motors Vietnam (MMV) has constantly made efforts to
approach potential customers as well as take good care of existing customers. The company has
continuously opened new agents, invested in professional maintenance and service centers and
is present in more than 30 provinces and cities across the country [13].

Massive Marketing Campaigns. Not only active in the digital field, PR is also one of the
company's strengths. The constantly updated fanpage and website, creatively designed digital
ads, interesting and easy-to-understand videos, and many reviews and test drive programs have
helped MMV have a large coverage.

7
8
Weakness
Not diverse in models. The car segments and models of MMV are still limited, including: B
segment (small budget car) - Attrage, M segment (MVP) - Xpander, segment C (midsize budget
car) - Outlander, segment pickup segment - Triton, SUV segment - XFC Concept, Xpander
Cross, Pajero Sport.
Small market share of small cars. Mitsubishi's revenue mainly comes from SUVs and pickups,
and other sedans and minicars are having a harder time gaining market share.

Opportunity
Demand for green cars, hybrid cars. It can be seen that the Vietnamese market has recently been
very active with green and electric cars. The Vietnam Automobile Manufacturers Association
(VAMA) has forecast that Vietnam will reach 1 million electrified vehicles (EVs) around 2028
and grow rapidly in the period 2030-2040. By 2040, Vietnam will have about 3.5 million electric
cars [14].
Links with car manufacturers or raw material factories. With the new decree on localization
rate, automobile brands and raw material factories will develop strongly in the coming time.
This not only helps high-performance brands in sales, but also reduces product costs. This will
be both an opportunity and a challenge for Mitsubishi in the Vietnamese market.
9
Technological development. Invest in more advanced, automated technologies to reduce costs.
High technology also allows for better data collection from customers and improved trading
performance.

Threats
Competitive. Mitsubishi Motors faces competitive pressure from many other players in the
industry, including companies that assemble or import from abroad. This competition could hurt
Mitsubishi's business.
New distributor. The number of local distributors is growing and their power poses a great
threat.
Technological developments of competitors. New technological developments by several
industry competitors pose a threat to Mitsubishi Motors. Buyers attracted to this new technology
could lose out to competitors, reducing Mitsubishi Motors' overall market share.

IV. COMPETITOR ANALYSIS OF MITSUBISHI VIETNAM

VinFast

VinFast is a "domestic" car company that has just inaugurated a production plant in Hai Phong.
This is also the first automobile manufacturer in Vietnam. The company has a price advantage
thanks to its domestic assembly plants. Currently, the company has launched the car product
line LUX SA2.0, LUX A2.0 and VinFast Fadil (no car line competes directly) [15].

Thaco

Truong Hai Automobile Joint Stock Company (Thaco) is currently the company with the largest
market share in Vietnam. The company specializes in manufacturing, assembling, importing,
exporting, distributing, maintaining and repairing automobiles in Vietnam. Currently, Thaco is
cooperating with many major automobile brands in the world, bringing these products to
Vietnam for assembly. Thaco distributes Mazda (Japan), KIA (Korea), Peugeot (France) and
most recently BMW (Germany) [15].

Mazda CX-5, Kia Sorento, Kia Sportage directly compete with XFC Concept, Xpander
Cross, Pajero Sport. (SUV segment)
Mazda BT-50 competes directly with Mitsubishi Triton (pickup segment)
Mazda 2 sedan competes directly with Mitsubishi Attrage (B segment)
Kia Grand Carnival, Kia Rondo compete directly with Mitsubishi Attrage (MPV segment)

Hyundai Thanh Cong

The joint venture factory between Hyundai Thanh Cong (Vietnam) and Hyundai Motor (Korea)
is located in Ninh Binh. Here, we are manufacturing and assembling famous Hyundai-branded
cars such as: Hyundai SantaFe, Elantra, Grand i10, Tucson... In the near future, Hyundai Thanh
Cong plans to expand its production and assembly plants. assemble cars in Vietnam [15].

10
Toyota

Toyota is a popular Japanese car company in Vietnam. Toyota Vietnam automobile factory is
located in Phuc Yen town, Vinh Phuc province. This is a joint venture between Toyota Japan
Company, Vietnam Engine and Agriculture Corporation (VEAM) and KUO Company (Asia)
[15].

Currently, Toyota factory assembles CKD models such as Toyota Innova, Toyota Corolla Altis,
Vios and Fortuner. The remaining models such as Camry, Hilux, Yaris, Avanza, Wigo, Rush...
are all imported CBU.

Ford

Ford Vietnam Company is a joint venture between Ford Motor Corporation in the US and Song
Cong Diesel Company. The company has an assembly plant located in Hai Duong with a
capacity of 14,000 vehicles a year. Ford's most popular CKD model in Vietnam is EcoSport
[15].

Honda's motobike

Honda Vietnam Company was established in 1996 with two main product lines: motorcycles
and automobiles. However, it was not until 2005 that the company was licensed to manufacture
and assemble automobiles in Vietnam. Honda automobile assembly plants are currently located
in Vinh Phuc and Ha Nam. The models currently distributed by Honda include City, HRV, Civic,
CR-V, Accord, Civic Type R [15].

V. CONCLUSION

More than 40 businesses in Vietnam's automobile industry manufacture and assemble

automobiles. According to the proposal, the total assembly capacity is more than 755,000
automobiles per year. Currently, many automobile enterprises are not interested in domestic
production, instead they are preferring to import complete units [17]. Yet, given the existing
localization rate regulation, increasing domestic production will be a long-term competitive
strategy for MMV to consider. If MMV can identify a reliable supplier, it can help the company
reduce import tax costs.

In addition, MMV may study more about hybrid or green automobiles, which are now a hot
topic in Vietnam. According to Decree 10/2022/ND-CP, the registration cost for electric
vehicles is legally waived (0%) for three years beginning March 1 [9]. This will be a significant
motivator for MMV to investigate and distribute electric automobiles in the Vietnamese market.

11
VI. REFERENCE
[1] Lê Vũ, (2023). TRIỂN VỌNG FDI NGÀNH Ô TÔ VIỆT NAM NĂM. VNeconomy.
[Viewed 18 Feb 2023]. Available from: https://vneconomy.vn/automotive/trien-vong-fdi-
nganh-o-to-viet-nam-nam-2023.htm

[2] Mitsubishi, (2023). Trang chủ. Mitsubishi.vn. [Viewed 18 Feb 2023]. Available
from: https://www.mitsubishi-motors.com.vn/

[4] VAMA, (2023). BÁO CÁO BÁN HÀNG. VAMA. [Viewed 18 Feb 2023]. Available
from: http://vama.org.vn/vn/bao-cao-ban-hang.html

[5] Hyundai Thanh Cong, (2023). Tin công ty: TC GROUP THÔNG BÁO KẾT QUẢ BÁN
HÀNG HYUNDAI NĂM 2022. hyundai.thanhcong.vn. [Viewed 18 Feb 2023]. Available
from: https://hyundai.thanhcong.vn/htv/tin-cong-ty/tc-group-thong-bao-ket-qua-ban-hang-
hyundai-nam-2022

[6] Phan Quốc Linh, (2022). VinFast công bố kết quả kinh doanh ô tô tháng 8/2022.
Vinfastauto. [Viewed 18 Feb 2023]. Available from: https://vinfastauto.com/vn_vi/vinfast-
cong-bo-ket-qua-kinh-doanh-o-to-thang-82022

[7] Nhật Khôi, (2023). Thị trường ô tô Việt Nam năm 2022 vượt ngưỡng 500.000 xe.
Congthuong.vn. [Viewed 18 Feb 2023]. Available from: https://congthuong.vn/thi-truong-o-
to-viet-nam-nam-2022-vuot-nguong-500000-xe-239066.html

[8] AAF, (2023). ASEAN AUTOMOTIVE FEDERATION STATISTICS. AFF. [Viewed 18

Feb 2023]. Available from: http://www.asean-autofed.com/statistics.html

[9] Anh Minh, (2023). Từ 1/10: Bãi bỏ các quy định về tính tỷ lệ nội địa hóa ô tô. Bộ công
thương. [Viewed 18 Feb 2023]. Available from: https://moit.gov.vn/tin-tuc/phat-trien-cong-
nghiep/tu-1-10-bai-bo-cac-quy-dinh-ve-tinh-ty-le-noi-dia-hoa-o-to.html

[10] Bộ Công Thương, (2023). Từ 1/10: Vai trò của ngành công nghiệp ô tô đối với nền kinh
tế quốc dân. Bộ công thương. [Viewed 18 Feb 2023]. Available from: https://moit.gov.vn/tin-
tuc/phat-trien-cong-nghiep/vai-tro-cua-nganh-cong-nghiep-o-to-doi-voi-nen-kinh-te-quoc-
.html

[11] Trần Thanh Phúc, (2023). Am hiểu công ty, tự tin phỏng vấn: Mitsubishi Motors Việt
Nam. Brandsvietnam.com. [Viewed 18 Feb 2023]. Available from:
https://www.brandsvietnam.com/congdong/topic/31506-Am-hieu-cong-ty-tu-tin-phong-van-
Mitsubishi-Motors-Viet-Nam

[13] P.V, (2019). Giải mã thành công của Mitsubishi tại Việt Nam. Tienphong.vn. [Viewed 18
Feb 2023]. Available from: https://tienphong.vn/giai-ma-thanh-cong-cua-mitsubishi-tai-viet-
nam-post1142649.tpo

[14] Minh Long, (2022). NĂM 2022 SẼ LÀ BƯỚC NGOẶT CỦA THỊ TRƯỜNG XE
"XANH" TẠI VIỆT NAM? VNeconomy. [Viewed 18 Feb 2023]. Available from:
https://vneconomy.vn/automotive/nam-2022-se-la-buoc-ngoat-cua-thi-truong-xe-xanh-tai-viet-
nam.htm
12
[15] Việt Vũ, (2019). Thương hiệu ô tô nào đang sản xuất, lắp ráp tại Việt Nam? Vtc.vn.
[Viewed 18 Feb 2023]. Available from: https://vtc.vn/thuong-hieu-o-to-nao-dang-san-xuat-
lap-rap-tai-viet-nam-ar482462.html

[16] Hoàng Lâm, (2023). DOANH NGHIỆP NGÀNH Ô TÔ ĐẨY MẠNH SẢN XUẤT TẠI
VIỆT NAM, CƠ HỘI TĂNG TỶ LỆ NỘI ĐỊA HOÁ. Vneconomy. [Viewed 18 Feb 2023].
Available from: https://vneconomy.vn/automotive/doanh-nghiep-nganh-o-to-day-manh-san-
xuat-tai-viet-nam-co-hoi-tang-ti-le-noi-dia-hoa.htm

[17] Thanh Thương, (2023). Sản xuất và tiêu thụ ôtô trong nước đang chững lại. Vietstock.vn.
[Viewed 18 Feb 2023]. Available from: https://vietstock.vn/2023/02/san-xuat-va-tieu-thu-oto-
trong-nuoc-dang-chung-lai-4264-1039895.htm

13