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Vietnam Automotive Artificial Intelligence Market

The Vietnam Automotive AI Market, valued at USD 25 million, grows due to smart vehicles demand, government initiatives, and safety enhancements in connected cars.

Region:Asia

Author(s):Geetanshi

Product Code:KRAD4069

Pages:86

Published On:December 2025

About the Report

Base Year 2024

Vietnam Automotive Artificial Intelligence Market Overview

  • The Vietnam Automotive Artificial Intelligence Market is valued at approximately USD 25 million, based on a five-year historical analysis. This growth is primarily driven by government-led digital transformation programs, increasing use of AI in advanced driver assistance, smart parking, and driver-monitoring solutions, and rising integration of AI into connected and electric vehicles produced or deployed in Vietnam. The growing emphasis on road safety, smart city mobility projects, and partnerships between domestic firms such as VinAI and global technology players is further accelerating adoption of automotive AI across the value chain.
  • Key regions such as Northern Vietnam (including Hanoi) and Southern Vietnam (including Ho Chi Minh City) dominate the market due to their concentration of automotive assembly plants, electronics manufacturing, and software development centers. These urban hubs host major players like VinFast, FPT Software, Bosch Global Software Technologies, and numerous startups, creating fertile ground for collaboration on ADAS, autonomous functions, and in-vehicle infotainment AI. The presence of technology parks, universities with AI programs, and growing foreign direct investment in R&D strengthens their role as the primary clusters for automotive AI innovation.
  • The Vietnamese government has introduced national AI and digital transformation strategies that encourage the use of intelligent systems in transportation. Instead, policy efforts focus on improving traffic safety, promoting smart city infrastructure (including AI-based traffic management and surveillance), and incentivizing industry 4.0 technologies in manufacturing, which indirectly increase demand for automotive AI solutions. These initiatives, combined with improving 4G/5G and data-center infrastructure, support broader deployment of connected and AI-enabled vehicle systems.
Vietnam Automotive Artificial Intelligence Market Size

Vietnam Automotive Artificial Intelligence Market Segmentation

By Component:The components of the automotive AI market can be categorized into hardware, software, and services. Hardware includes sensors, ECUs, GPUs, and cameras, which are essential for data collection and processing. Software encompasses AI algorithms, middleware, and platforms that enable machine learning and data analysis. Services involve integration, consulting, and maintenance, which are crucial for implementing AI solutions effectively.

Vietnam Automotive Artificial Intelligence Market segmentation by Component.

By Technology:The technology segment of the automotive AI market includes machine learning and deep learning, computer vision, natural language processing, and other AI technologies. Machine learning and deep learning are pivotal for developing intelligent systems that can learn from data. Computer vision is essential for enabling vehicles to interpret their surroundings, while natural language processing enhances human-machine interaction. Other AI technologies also contribute to various applications within the automotive sector.

Vietnam Automotive Artificial Intelligence Market segmentation by Technology.

Vietnam Automotive Artificial Intelligence Market Competitive Landscape

The Vietnam Automotive Artificial Intelligence Market is characterized by a dynamic mix of regional and international players. Leading participants such as VinAI Technology (Vingroup), VinFast Auto, FPT Software, Viettel High Technology Industries Corporation (Viettel High Tech), Bosch Global Software Technologies (Vietnam), Robert Bosch Vietnam Co., Ltd., Toyota Motor Vietnam Co., Ltd., Honda Vietnam Co., Ltd., Ford Vietnam Limited, Hyundai Thanh Cong Vietnam Automobile Joint Stock Company (HTV), Truong Hai Auto Corporation (THACO), Siemens Industry Software (Vietnam) Co., Ltd., Panasonic Vietnam Co., Ltd., MITSUBISHI MOTORS Vietnam Co., Ltd., Nissan Vietnam Co., Ltd. contribute to innovation, geographic expansion, and service delivery in this space.

VinAI Technology

2018

Hanoi, Vietnam

VinFast Auto

2017

Hanoi, Vietnam

FPT Software

1999

Hanoi, Vietnam

Viettel High Tech

2007

Hanoi, Vietnam

Bosch Global Software Technologies

2018

Ho Chi Minh City, Vietnam

Company

Establishment Year

Headquarters

Group Size (Global Tier 1, Regional OEM, or Local Technology Provider)

Automotive AI Revenue (Vietnam), Latest Financial Year

Automotive AI Revenue CAGR (Vietnam), Historical Period

Share of Vietnam in Global Automotive AI Revenue

Number of Active Automotive AI Programs / Projects in Vietnam

Installed Base of AI-enabled Vehicles / Systems in Vietnam

Vietnam Automotive Artificial Intelligence Market Industry Analysis

Growth Drivers

  • Increasing Demand for Smart Vehicles:The Vietnamese automotive market is witnessing a surge in demand for smart vehicles, with sales projected to reach 600,000 units in future, up from 400,000 in 2023. This growth is driven by consumer preferences for advanced features such as AI-assisted driving and enhanced connectivity. The World Bank reports that Vietnam's GDP growth is expected to be around 6.5% in future, further boosting disposable income and consumer spending on innovative automotive technologies.
  • Government Initiatives Promoting AI in Automotive:The Vietnamese government has allocated approximately $250 million for AI research and development in the automotive sector by future. This funding aims to foster innovation and support local manufacturers in integrating AI technologies. Additionally, the government is implementing policies to encourage foreign investment, which is expected to increase by 15% in the automotive sector, facilitating the adoption of AI solutions in vehicle production and design.
  • Rising Consumer Expectations for Safety and Convenience:As Vietnam's middle class expands, consumer expectations for vehicle safety and convenience are rising. In future, it is estimated that 75% of new car buyers will prioritize advanced safety features, such as AI-based collision avoidance systems. The Vietnam National Traffic Safety Committee reported a 10% decrease in road accidents in 2023 due to improved vehicle safety standards, further driving demand for AI-enhanced automotive solutions.

Market Challenges

  • High Initial Investment Costs:The integration of AI technologies in the automotive sector requires significant upfront investments, estimated at around $350 million for local manufacturers in future. This financial barrier can deter smaller companies from adopting AI solutions, limiting overall market growth. Furthermore, the high costs associated with R&D and technology acquisition can strain budgets, especially for emerging automotive firms in Vietnam.
  • Limited Infrastructure for AI Integration:Vietnam's current infrastructure for AI integration in the automotive sector is underdeveloped, with only 35% of manufacturers equipped for advanced AI applications in future. The lack of robust data networks and AI-friendly environments hampers the effective deployment of smart technologies. Additionally, inadequate training facilities for AI skills further complicate the integration process, slowing down market advancements.

Vietnam Automotive Artificial Intelligence Market Future Outlook

The future of the Vietnam automotive AI market appears promising, driven by technological advancements and increasing consumer demand for smart vehicles. By future, the market is expected to see significant growth in AI applications, particularly in autonomous driving and vehicle connectivity. As the government continues to support AI initiatives, local manufacturers are likely to enhance their capabilities, leading to innovative solutions that cater to evolving consumer preferences. This dynamic environment will foster collaboration between automotive and tech sectors, paving the way for sustainable growth.

Market Opportunities

  • Growth of Electric Vehicles (EVs) Market:The EV market in Vietnam is projected to grow to 150,000 units in future, driven by government incentives and increasing environmental awareness. This growth presents opportunities for AI integration in EVs, enhancing energy management and driving efficiency, which can significantly impact the automotive landscape.
  • Partnerships with Tech Companies for Innovation:Collaborations between automotive manufacturers and tech firms are expected to increase, with at least 25 partnerships anticipated in future. These alliances will focus on developing AI-driven mobility solutions, fostering innovation, and enhancing the competitive edge of local manufacturers in the rapidly evolving automotive market.

Scope of the Report

SegmentSub-Segments
By Component

Hardware (sensors, ECUs, GPUs, cameras)

Software (AI algorithms, middleware, platforms)

Services (integration, consulting, maintenance)

By Technology

Machine Learning and Deep Learning

Computer Vision

Natural Language Processing

Other AI Technologies

By Process

Data Mining and Data Analytics

Image and Pattern Recognition

Signal and Sensor Recognition

By Application

Advanced Driver Assistance Systems (ADAS)

Autonomous and Semi-autonomous Driving

Predictive Maintenance and Vehicle Health Monitoring

In-vehicle Infotainment and Human–Machine Interface

Fleet and Traffic Management

Manufacturing and Quality Inspection

By Vehicle Type

Passenger Vehicles

Light Commercial Vehicles

Heavy Commercial Vehicles

Electric Vehicles

By Level of Autonomy

Level 1–2 (Driver Assistance)

Level 3 (Conditional Automation)

Level 4–5 (High and Full Automation)

By Deployment

On-board / Edge Deployment

Cloud-based Deployment

Key Target Audience

Investors and Venture Capitalist Firms

Government and Regulatory Bodies (e.g., Ministry of Industry and Trade, Ministry of Transport)

Automotive Manufacturers and Producers

Automotive Component Suppliers

Technology Providers and AI Developers

Industry Associations (e.g., Vietnam Automobile Manufacturers Association)

Financial Institutions and Banks

Logistics and Supply Chain Companies

Players Mentioned in the Report:

VinAI Technology (Vingroup)

VinFast Auto

FPT Software

Viettel High Technology Industries Corporation (Viettel High Tech)

Bosch Global Software Technologies (Vietnam)

Robert Bosch Vietnam Co., Ltd.

Toyota Motor Vietnam Co., Ltd.

Honda Vietnam Co., Ltd.

Ford Vietnam Limited

Hyundai Thanh Cong Vietnam Automobile Joint Stock Company (HTV)

Truong Hai Auto Corporation (THACO)

Siemens Industry Software (Vietnam) Co., Ltd.

Panasonic Vietnam Co., Ltd.

MITSUBISHI MOTORS Vietnam Co., Ltd.

Nissan Vietnam Co., Ltd.

Table of Contents

Market Assessment Phase

1. Executive Summary and Approach


2. Vietnam Automotive Artificial Intelligence Market Overview

2.1 Key Insights and Strategic Recommendations

2.2 Vietnam Automotive Artificial Intelligence Market Overview

2.3 Definition and Scope

2.4 Evolution of Market Ecosystem

2.5 Timeline of Key Regulatory Milestones

2.6 Value Chain & Stakeholder Mapping

2.7 Business Cycle Analysis

2.8 Policy & Incentive Landscape


3. Vietnam Automotive Artificial Intelligence Market Analysis

3.1 Growth Drivers

3.1.1 Increasing demand for smart vehicles
3.1.2 Government initiatives promoting AI in automotive
3.1.3 Rising consumer expectations for safety and convenience
3.1.4 Expansion of automotive manufacturing in Vietnam

3.2 Market Challenges

3.2.1 High initial investment costs
3.2.2 Limited infrastructure for AI integration
3.2.3 Regulatory hurdles and compliance issues
3.2.4 Shortage of skilled workforce in AI technologies

3.3 Market Opportunities

3.3.1 Growth of electric vehicles (EVs) market
3.3.2 Partnerships with tech companies for innovation
3.3.3 Development of AI-driven mobility solutions
3.3.4 Export potential of AI automotive technologies

3.4 Market Trends

3.4.1 Increasing adoption of autonomous driving technologies
3.4.2 Integration of AI in vehicle maintenance and diagnostics
3.4.3 Rise of connected vehicles and IoT applications
3.4.4 Focus on sustainability and eco-friendly technologies

3.5 Government Regulation

3.5.1 Policies supporting AI research and development
3.5.2 Standards for autonomous vehicle testing
3.5.3 Incentives for electric vehicle adoption
3.5.4 Regulations on data privacy and security in AI

4. SWOT Analysis


5. Stakeholder Analysis


6. Porter's Five Forces Analysis


7. Vietnam Automotive Artificial Intelligence Market Market Size, 2019-2024

7.1 By Value

7.2 By Volume

7.3 By Average Selling Price


8. Vietnam Automotive Artificial Intelligence Market Segmentation

8.1 By Component

8.1.1 Hardware (sensors, ECUs, GPUs, cameras)
8.1.2 Software (AI algorithms, middleware, platforms)
8.1.3 Services (integration, consulting, maintenance)

8.2 By Technology

8.2.1 Machine Learning and Deep Learning
8.2.2 Computer Vision
8.2.3 Natural Language Processing
8.2.4 Other AI Technologies

8.3 By Process

8.3.1 Data Mining and Data Analytics
8.3.2 Image and Pattern Recognition
8.3.3 Signal and Sensor Recognition

8.4 By Application

8.4.1 Advanced Driver Assistance Systems (ADAS)
8.4.2 Autonomous and Semi-autonomous Driving
8.4.3 Predictive Maintenance and Vehicle Health Monitoring
8.4.4 In-vehicle Infotainment and Human–Machine Interface
8.4.5 Fleet and Traffic Management
8.4.6 Manufacturing and Quality Inspection

8.5 By Vehicle Type

8.5.1 Passenger Vehicles
8.5.2 Light Commercial Vehicles
8.5.3 Heavy Commercial Vehicles
8.5.4 Electric Vehicles

8.6 By Level of Autonomy

8.6.1 Level 1–2 (Driver Assistance)
8.6.2 Level 3 (Conditional Automation)
8.6.3 Level 4–5 (High and Full Automation)

8.7 By Deployment

8.7.1 On-board / Edge Deployment
8.7.2 Cloud-based Deployment

9. Vietnam Automotive Artificial Intelligence Market Competitive Analysis

9.1 Market Share of Key Players

9.2 Cross Comparison of Key Players

9.2.1 Company Name
9.2.2 Group Size (Global Tier 1, Regional OEM, or Local Technology Provider)
9.2.3 Automotive AI Revenue (Vietnam), Latest Financial Year
9.2.4 Automotive AI Revenue CAGR (Vietnam), Historical Period
9.2.5 Share of Vietnam in Global Automotive AI Revenue
9.2.6 Number of Active Automotive AI Programs / Projects in Vietnam
9.2.7 Installed Base of AI-enabled Vehicles / Systems in Vietnam
9.2.8 R&D Intensity (% of Revenue Spent on R&D)
9.2.9 Portfolio Breadth (Number of Automotive AI Use Cases Addressed)
9.2.10 Strategic Partnerships with OEMs and Mobility Operators in Vietnam
9.2.11 Average Deal Size for Automotive AI Contracts in Vietnam
9.2.12 Time-to-Deployment for Automotive AI Solutions
9.2.13 Compliance with Local and International Automotive Safety / AI Standards

9.3 SWOT Analysis of Top Players

9.4 Pricing Analysis

9.5 Detailed Profile of Major Companies

9.5.1 VinAI Technology (Vingroup)
9.5.2 VinFast Auto
9.5.3 FPT Software
9.5.4 Viettel High Technology Industries Corporation (Viettel High Tech)
9.5.5 Bosch Global Software Technologies (Vietnam)
9.5.6 Robert Bosch Vietnam Co., Ltd.
9.5.7 Toyota Motor Vietnam Co., Ltd.
9.5.8 Honda Vietnam Co., Ltd.
9.5.9 Ford Vietnam Limited
9.5.10 Hyundai Thanh Cong Vietnam Automobile Joint Stock Company (HTV)
9.5.11 Truong Hai Auto Corporation (THACO)
9.5.12 Siemens Industry Software (Vietnam) Co., Ltd.
9.5.13 Panasonic Vietnam Co., Ltd.
9.5.14 MITSUBISHI MOTORS Vietnam Co., Ltd.
9.5.15 Nissan Vietnam Co., Ltd.

10. Vietnam Automotive Artificial Intelligence Market End-User Analysis

10.1 Procurement Behavior of Key Ministries

10.1.1 Ministry of Transport
10.1.2 Ministry of Industry and Trade
10.1.3 Ministry of Science and Technology
10.1.4 Ministry of Finance
10.1.5 Others

10.2 Corporate Spend on Infrastructure & Energy

10.2.1 Automotive Infrastructure Development
10.2.2 Investment in AI Technologies
10.2.3 Budget Allocation for R&D
10.2.4 Partnerships with Tech Firms
10.2.5 Others

10.3 Pain Point Analysis by End-User Category

10.3.1 Automotive Manufacturers
10.3.2 Fleet Operators
10.3.3 Government Agencies
10.3.4 Consumers
10.3.5 Others

10.4 User Readiness for Adoption

10.4.1 Awareness of AI Benefits
10.4.2 Training and Skill Development
10.4.3 Infrastructure Readiness
10.4.4 Financial Capability
10.4.5 Others

10.5 Post-Deployment ROI and Use Case Expansion

10.5.1 Measurement of ROI
10.5.2 Scalability of AI Solutions
10.5.3 User Feedback and Iteration
10.5.4 Expansion into New Use Cases
10.5.5 Others

11. Vietnam Automotive Artificial Intelligence Market Future Size, 2025-2030

11.1 By Value

11.2 By Volume

11.3 By Average Selling Price


Go-To-Market Strategy Phase

1. Whitespace Analysis + Business Model Canvas

1.1 Market Gaps Identification

1.2 Business Model Development


2. Marketing and Positioning Recommendations

2.1 Branding Strategies

2.2 Product USPs


3. Distribution Plan

3.1 Urban Retail Strategies

3.2 Rural NGO Tie-ups


4. Channel & Pricing Gaps

4.1 Underserved Routes

4.2 Pricing Bands


5. Unmet Demand & Latent Needs

5.1 Category Gaps

5.2 Consumer Segments


6. Customer Relationship

6.1 Loyalty Programs

6.2 After-sales Service


7. Value Proposition

7.1 Sustainability

7.2 Integrated Supply Chains


8. Key Activities

8.1 Regulatory Compliance

8.2 Branding

8.3 Distribution Setup


9. Entry Strategy Evaluation

9.1 Domestic Market Entry Strategy

9.1.1 Product Mix
9.1.2 Pricing Band
9.1.3 Packaging

9.2 Export Entry Strategy

9.2.1 Target Countries
9.2.2 Compliance Roadmap

10. Entry Mode Assessment

10.1 JV

10.2 Greenfield

10.3 M&A

10.4 Distributor Model


11. Capital and Timeline Estimation

11.1 Capital Requirements

11.2 Timelines


12. Control vs Risk Trade-Off

12.1 Ownership vs Partnerships


13. Profitability Outlook

13.1 Breakeven Analysis

13.2 Long-term Sustainability


14. Potential Partner List

14.1 Distributors

14.2 JVs

14.3 Acquisition Targets


15. Execution Roadmap

15.1 Phased Plan for Market Entry

15.1.1 Market Setup
15.1.2 Market Entry
15.1.3 Growth Acceleration
15.1.4 Scale & Stabilize

15.2 Key Activities and Milestones

15.2.1 Activity Planning
15.2.2 Milestone Tracking

Research Methodology

ApproachModellingSample

Phase 1: Approach1

Desk Research

  • Analysis of government reports on the automotive sector in Vietnam
  • Review of industry publications and market analysis reports specific to AI applications in automotive
  • Examination of academic journals and white papers on AI technology trends in the automotive industry

Primary Research

  • Interviews with automotive manufacturers and AI technology providers in Vietnam
  • Surveys targeting automotive industry experts and analysts
  • Focus group discussions with end-users of AI technologies in vehicles

Validation & Triangulation

  • Cross-validation of findings through multiple data sources including trade associations and government statistics
  • Triangulation of insights from primary interviews with secondary data trends
  • Sanity checks conducted through expert panels comprising industry veterans and academic researchers

Phase 2: Market Size Estimation1

Top-down Assessment

  • Estimation of the overall automotive market size in Vietnam and its growth trajectory
  • Segmentation of the market by AI applications such as autonomous driving, predictive maintenance, and in-car personal assistants
  • Incorporation of government initiatives promoting AI in the automotive sector

Bottom-up Modeling

  • Collection of data from leading automotive manufacturers on AI adoption rates and investment levels
  • Estimation of market size based on unit sales of vehicles equipped with AI technologies
  • Analysis of average revenue per vehicle from AI-related features and services

Forecasting & Scenario Analysis

  • Development of forecasting models based on historical growth rates and emerging trends in AI technology
  • Scenario analysis considering factors such as regulatory changes, consumer acceptance, and technological advancements
  • Creation of baseline, optimistic, and pessimistic forecasts for the AI automotive market through 2030

Phase 3: CATI Sample Composition1

Scope Item/SegmentSample SizeTarget Respondent Profiles
Automotive Manufacturers120Product Managers, R&D Directors
AI Technology Providers90Business Development Managers, Technical Leads
Automotive Industry Analysts60Market Analysts, Research Directors
End-Users of AI in Vehicles80Vehicle Owners, Fleet Managers
Government and Regulatory Bodies50Policy Makers, Regulatory Affairs Managers

Frequently Asked Questions

What is the current value of the Vietnam Automotive Artificial Intelligence Market?

The Vietnam Automotive Artificial Intelligence Market is valued at approximately USD 25 million, driven by government initiatives, increasing AI adoption in vehicles, and the integration of smart technologies in automotive manufacturing.

What factors are driving the growth of the automotive AI market in Vietnam?

Which regions in Vietnam dominate the automotive AI market?

What are the main components of the automotive AI market?

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