In the first half of 2018, Toyota Vietnam exported over US$34 million worth of auto parts, up 13% year-on-year. Last year, the company earned US$64 million from export, a rise of 5% from 2016. That is also the largest export value since this Japanese joint venture put its center for export of automotive parts in Vietnam into operation in 2004.

Currently, Toyota Vietnam’s major export items are antenna, exhaust valve, accelerator and floor plug. With Thailand, Indonesia, the Philippines, Malaysia, India, Argentina, South Africa, and Venezuela as its main markets, this automaker has recorded a total turnover of more than US$500 million, greatly contributing to the total growth in export of this commodity group.

The export value of auto parts is now nearly US$1 billion higher than their import value, said Nguyen Thi Xuan Thuy from the Institute for Industry Policy and Strategy under the Ministry of Industry and Trade. Some auto parts shipped out from Vietnam have relatively high technology, such as ignition wire set, gearbox spare parts, and airbag, etc. In other words, there are manufacturers of high-quality automotive components in Vietnam, who have joined the global supply chain, and do not just make the simple products.

Exports of vehicles and spare parts brought in nearly US$7 billion in 2017, up 15.4% year-on-year, as per statistics from the General Department of Customs. In the first six months of 2018, US$4.03 billion worth of this commodity group was shipped overseas, an increase of 19.4% over the same period last year. In recent years, this group of products has generated a larger export turnover than some other groups which were once Vietnam’s key exports, occupying the eighth slot among the commodity groups with the highest export values at present.

Vehicles and spare parts from Vietnam are even bought by those nations with an advanced auto industry such as Japan, that paid US$1.17 billion in H1 (up 15.1% year-on-year), and the U.S., that spent US$625 million (up 27.4%). Some other markets like Thailand, Germany, China, and South Korea have also boosted import from Vietnam.

Although completely built-up vehicles are included in the statistics, observers believe the main contributor to the export of this commodity group is auto parts. It is because locally-assembled cars cost 20% more than finished units made in regional countries like Thailand and Indonesia. Their export is often infeasible.

As for motorcycles and their spare parts, they are being exported by Honda Vietnam and Piaggio Vietnam. However, even Honda as the largest exporter of such items brought in only US$330 million last year.