The Vietnamese automobile market remains highly competitive in the first half of 2026 as demand has not clearly recovered, supply remains abundant, and price competition persists across most segments.
Market demand has not yet shown a clear recovery, while supply is abundant and price competition continues to be intense across most vehicle segments.
Mr. Do Tien Dung, chairman of Haxaco (HAX), said Q1 2026 was the toughest period for the company, as it focused on clearing inventory carried over from previous years. Prioritizing stock clearance led to low profit in the first quarter and did not fully reflect the group’s business capacity.
In Q2, the situation began to improve thanks to support from Mercedes-Benz Vietnam, with new products offering higher margins and sales activities gradually stabilizing.
Haxaco estimates parent company profit in the first six months of the year to be over 60 billion VND.
The company is investing nearly 100 billion VND to upgrade two Mercedes-Benz showrooms in Lang Ha (Hanoi) and Kinh Duong Vuong (Ho Chi Minh City) to Mercedes-Benz’s MAR20X standard. The two showrooms are expected to go into operation in July, becoming the most premium dealerships in the global Mercedes network in Vietnam. By the end of 2026, Haxaco aims to complete upgrading the last Mercedes-Benz dealership in the system.
Haxaco explains that focusing solely on short-term profit would erode its long-term competitive advantage. The company views investments during a market lull as a sign of commitment to long-term development with Mercedes-Benz and confidence in the industry’s recovery prospects.
In addition to facilities, Haxaco has prepared technical infrastructure to welcome Mercedes’ new product wave. The plan for the second half of 2026 includes introducing a series of newly imported models in Vietnam, including fully electric, hybrid and plug-in hybrid vehicles.
For the VinFast brand, the six-month profit of VFG – the VinFast distribution subsidiary – is expected to exceed 33 billion VND. Haxaco currently owns 11 VinFast dealerships nationwide. Most service workshops have reached break-even, with 7 of 11 showrooms reporting service revenue above 2 billion VND per month. The company aims to have the entire VinFast service network profitable by 2027.
Haxaco has plans related to listing its subsidiary on HOSE and expanding VinFast and MG networks as part of its longer-term strategy.
Looking ahead, the chairman expects the second half of the year to be more favorable thanks to signs of demand recovery and a raft of stimulus programs from automakers. However, the group remains cautious about intensified competition as supply remains high and price competition shows no signs of cooling.
Haxaco is venturing into real estate with the Vo Van Kiet land, covering 6,280 square meters. The chairman said the company is considering multiple options, including developing the An Lạc Villa project with shophouses and villas. “We are planning to implement the project; if feasible, it will contribute positively to Haxaco Group’s profits.”
