Sales of Korean cars are increasing in Vietnam. What's the reason? / Yu Young-guk writer @sbs_economy / SBS

Sales of Korean cars are surging in the Vietnamese market. This isn't just a trend; it's a result of Vietnam's economic growth, expanding middle class, and the increasing competitiveness of Korean cars. Korean cars offer price competitiveness and attractive designs compared to Japanese cars, and the local assembly process adds to their appeal. This video analyzes the fascinating changes in the Vietnamese market and the factors behind the success of Korean cars, along with future prospects. It also delves into Vietnam's diplomatic strategies, economic conditions, and the investment strategies of Korean companies.

This video is part two of a series on the Vietnamese market, focusing on aspects not previously covered. It explores the appeal of the Vietnamese market and the reasons behind the increase in sales of Korean cars.

US Secretary of State Blinken's visit to Vietnam is more than just a diplomatic gesture; it's a crucial step in laying the foundation for a stronger relationship between the US and Vietnam. According to a commentary in the CSIS, a conservative US think tank, the Vietnamese president's visit to the US is a follow-up to his visit to China to congratulate Xi Jinping's re-election, and a strategic move to strengthen relations with the US. These diplomatic moves demonstrate Vietnam's neutral and multilateral diplomatic approach, while also showing Vietnam's efforts to manage relations with China through strengthening ties with the US. A summit between the US and Vietnamese presidents is expected as a result of these diplomatic moves, and it is likely to significantly impact the future development of relations between the two countries. These diplomatic moves are a significant indicator of Vietnam's strategic importance.

Since 2021, Korean cars, particularly eco-friendly vehicles and SUVs, have gained popularity in overseas markets. This has helped offset some of the impact of the semiconductor shortage. This trend is also evident in Vietnam, where the market share of Korean cars is increasing. In contrast to the high market share of Japanese cars in ASEAN countries, Korean cars hold a significant 38% market share in Vietnam. This is a crucial indicator of the strengthening competitiveness of Korean cars and the evolving Vietnamese market. Korean cars have gained price competitiveness through local assembly in Vietnam, and their designs and performance have also increased consumer preference.