Vietnam’s auto firms earnings growth expected

Vietnam’s motorcycle and car joint venture sector is forecasted to see consistent earnings growth in the next few years, with projected compound annual growth rates of 1.6 per cent and 4.8 per cent from 2024 to 2028, as per a report by SSI Research.

The car industry experienced a temporary revenue slowdown in the third quarter due to customer anticipation of incentives. However, SSI Research forecasts a significant revenue surge in the fourth quarter as pent-up demand is unleashed, driving growth.

SSI Research’s analytical team predicts a nine per cent rise in domestic car sales and a two per cent increase in domestic motorcycle sales in 2024, based on the robust performance of vehicle sales and profits from affiliated companies in the second quarter of 2024.

This forecast is in comparison to the previous year, as reported by the Vietnam Automobile Manufacturers Association.

Attribution: Xinhua

Subediting: M. S. Salama