South Korea's Hyundai Elantra in Vietnam. (Photo courtesy of TC Motor)

While the Vietnamese auto market only ranks fourth in size in the region, its contribution to the sales of Hyundai and Kia, two major Korean brands, has been remarkable.

Since 2018 Vietnam has accounted for more than half of all South Korean car sales in Southeast Asia.

Sales of Hyundai and Kia in Vietnam in the first 10 months of 2020 rose to reached 82,129 units for a 31% market share.

Hyundai topped the market with sales at 57,039 vehicles, followed by Japan’s Toyota with 49,950.

Hyundai vehicles are made by TC Motor at its plant in the northern province of Ninh Binh while Truong Hai Auto (Thaco) makes Kia at its factory in the Chu Lai industrial zone in the central province of Quang Nam.

According to the Korea Automobile Manufacturers Association, South Korean cars had a 5.2% share of the regional market in 2019. The figure for Japanese cars was 74.3% or 2.63 million units last year.