“Automechanika Ho Chi Minh City: Bridging Vietnam’s Auto Market with the Global Stage”

Vietnam’s rapid economic advancement and strategic bolstering of its automotive supporting industries are making it an increasingly attractive prospect for companies considering international expansion. Automechanika Ho Chi Minh City illuminates this evolution, spotlighting the nation’s potential as a lucrative market and a burgeoning production center. Scheduled to take place at the Saigon Exhibition and Convention Center (SECC) from June 20 to 22, 2024, the event serves as an optimal entry point into Vietnam and relevant international markets. Featuring specialized zones and a diverse event program, Automechanika Ho Chi Minh City offers invaluable insights into the country’s burgeoning automotive sector.

Ms Fiona Chiew, General Manager of Messe Frankfurt (HK) Ltd, elaborates: “Bringing Automechanika into Vietnam was a strategic decision based on the potential we were seeing and continue to realise in the automotive market. Now entering its sixth edition, the show draws upon the Automechanika brand’s fifty-year legacy and network of 13 associated trade fairs and 130 partner organisations worldwide. Through leveraging the brand’s international standing and reach, we have created a common platform for firms to capture Vietnam’s unique market opportunities. Used by 41 countries and regions in the previous edition, we expect the scale of the 2024 show to increase.”

The upcoming edition expects to welcome over 500 exhibitors across 15,740 sqm of indoor and outdoor space.

Why is Vietnam an appealing market?
Vietnam has garnered attention among global manufacturers for its cost-competitive manufacturing capabilities and as a rapidly expanding consumer market in its own right. Projections indicate that by 2025, between 800,000 and 900,000 vehicles will be added to the country’s car ownership each year, increasing to approximately 1.5 to 1.8 million vehicles by 2030[1].

Acknowledging this rising demand, the Vietnamese Government has initiated a series of policies intended to strengthen its supporting industries, a term used to denote suppliers of key materials, parts, and components used within subsequent stages of the production process. By improving the efficiency and competitiveness of the larger manufacturing ecosystem, these industries not only reduce lead times and logistic costs, but also enhance the sector’s resilience in the face of supply chain disruptions.

The measures, which include increased loan availability and financial support, a heightened focus on worker training, and stricter quality inspection standards, aim to improve the quality and output of domestically produced parts and facilitate their integration into global value chains[2]. While primarily targeted at fortifying the domestic industry, these policies offer a more favourable environment for foreign enterprises to source, collaborate and invest in, thereby raising the country’s profile as a production hub.

Regionally tailored market insights
The event will feature a variety of specialised zones designed to reflect the country’s distinct market conditions. Notably, the Automotive Manufacturing, Transformation & Automation Zone will investigate significant trends in manufacturing, including AIoT, 3D printing, novel materials and more. As a part of this, it will evaluate the preparedness of Vietnamese suppliers for digital integration and industrial automation, providing valuable context for companies seeking to engage with the region.

Discussing this widescale transformation, Mr Do Dang Nguyen, Country Sales Manager, Factory Automation of Bosch Rexroth, commented: “The Vietnamese auto industry is expanding, backed by new factory developments and international investments. However, to sustain this growth, local factories must begin to progressively automate and digitise their systems. With its highly professional programme of seminars and speakers, Automechanika Ho Chi Minh City provides business owners with the information needed to guide their strategy in light of these shifts.”

Likewise, in keeping with the region’s expanding rate of car ownership, the Auto Repair, Maintenance & Care / Accessories & Customising Zone will enable participants to explore a range of electrical and mechanical repair and maintenance technologies, including specialised equipment and tools for new energy vehicles, car detailing and customisation. Meanwhile, the Automotive Mobility Solutions Zone will present the latest technologies and solutions in smart mobility, electric vehicles, logistics, the automotive OE and the aftermarket.

Commenting on his experience at the previous edition, Mr Chhayhear Yi, General Manager of Diamond Three Trading Co Ltd, recounted: “I visited Automechanika Ho Chi Minh City to identify auto parts suppliers for an export venture to Cambodia, and have had the opportunity to meet with companies from countries and regions including Vietnam, Japan, Korea, and China. As the largest and most professional exhibition of its kind that I have visited, it is a great opportunity for players from across the industry and the ASEAN region to gather, source, and network.”

For further market insights, the fair will host a varied fringe programme to assist businesses in navigating these emerging trends. Highlights include the Electrification & Digitalisation Business Networking Conference and the Automotive Logistics, Warehousing and Supply Chain Conference. These sessions will bring together local and international groups to explore broad-scale trends in new energy vehicle technology, digitalisation, and other transformations in the passenger, commercial, and fleet vehicle markets. To build a deeper awareness of the domestic automotive industry, autoFEST@HCMC will bring a medley of entertaining, interactive and networking activities for industry players and car lovers.