China sent 1.26 billion USD worth of cars to Vietnam in the first half of 2026. This makes China the biggest car importer to Vietnam. The Department of Customs gave this information.

Many Chinese car brands are now in Vietnam, competing with Japanese and Korean companies.

Chinese cars are cheaper, so other companies must lower their prices. They offer discounts and free things to compete.

Big car companies like Hyundai and Toyota give big discounts to sell their cars. Ford gives longer warranties. Chinese cars are making the market very competitive.

The competition is not just in stores.

Some Chinese car companies are building factories in Vietnam to make cars here.

Chery will start making cars in a new factory in Hung Yen in mid-2026. The factory will make 30,000 to 60,000 cars per year at first.

SAIC Motor, which makes MG cars, will also start making cars in Vietnam soon. They are talking to partners about building a factory.

Tasco and Geely Auto are working together to build a factory in Thai Binh. They will invest 168 million USD in the project.

The factory will make up to 75,000 cars per year. It will make Geely and Lynk & Co cars. They also want to build a research center.

Chinese companies are not just importing cars anymore. They are making cars in Vietnam, which will lower their costs and help them sell more.

For Vietnam, the good things about this will depend on how much of the car-making process happens here.

An expert, Nguyen Minh Dong, said Vietnam needs to be careful about rules of origin. If not, Vietnam might have problems with the US.

Dong said the government should help companies that bring new technology and help Vietnamese suppliers.

He said if companies just build assembly plants, Vietnam will not learn much about new technology.

The car industry is changing to electric and hybrid cars. Vietnam needs to be part of this change.

Bui Quoc Huy said Chinese companies are pushing the industry to change faster with new technology.

Chinese cars are competing with technology and innovation.

More Chinese companies in Vietnam can be good for consumers. They will have more choices and new technology.

But there is a risk that Vietnam will just assemble cars, not make the important parts.

Experts said Vietnam needs policies that help companies make more things in Vietnam and invest in research.

Chinese car companies are bringing competition and new technology to Vietnam. But Vietnam needs to make its own car parts and technology to really benefit.

The future will depend on how much Vietnam can make itself, not just assemble.