Press Release

Vietnam Automotive Microcontrollers Market to Grow with a CAGR of 5.8% through 2030

The Vietnam automotive microcontrollers market is growing rapidly, driven by EV adoption, smart mobility initiatives, rising vehicle electrification, and increasing demand for advanced driver-assistance and connectivity technologies.

 

According to TechSci Research report, “Vietnam Automotive Microcontrollers Market – By Region, Competition, Forecast & Opportunities, 2030F”, Vietnam Automotive Microcontrollers Market was valued at USD 422.43 Million in 2024 and is expected to reach USD 592.47 Million by 2030 with a CAGR of 5.8% during the forecast period. The Vietnam automotive microcontrollers market is undergoing a transformative shift, driven by the country’s strategic push toward automotive digitalization and intelligent mobility. As Vietnam positions itself as a manufacturing and innovation hub in Southeast Asia, the demand for embedded control systems in vehicles is rising steadily. A strong macroeconomic backdrop, rising middle-class incomes, and increasing vehicle ownership—especially in urban areas—are stimulating demand for smarter, safer, and more connected vehicles. Microcontrollers are central to this evolution, as they control everything from powertrain efficiency and body electronics to infotainment and advanced driver-assistance systems. Moreover, government support for the development of local EV brands, such as VinFast, is encouraging rapid integration of next-generation technologies, where microcontrollers enable battery management, regenerative braking, and telematics systems. The adoption of ASEAN-wide safety regulations and the growing participation of Vietnamese OEMs in global supply chains are further pushing automakers to embed more control electronics in every vehicle tier, enhancing vehicle functionality and compliance with global standards.

Despite these growth drivers, the market faces several structural and operational challenges. Chief among them is Vietnam’s limited domestic semiconductor manufacturing capability, which makes the supply of automotive microcontrollers heavily reliant on imports. This creates vulnerability to global chip shortages and price volatility. Additionally, a fragmented aftermarket ecosystem and limited availability of trained embedded system engineers pose barriers to local microcontroller integration and customization. For many domestic automakers, high dependency on foreign Tier-1 suppliers also constrains innovation and cost control. Moreover, cybersecurity and functional safety standards—while evolving—are still not uniformly enforced across the market, which may hamper consumer trust in advanced connected systems. Thus, while Vietnam’s automotive microcontrollers market is poised for robust growth, it must navigate supply chain fragility, technical skill gaps, and regulatory enforcement issues to fully unlock its long-term potential.

 

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The Vietnam automotive microcontrollers market is segmented into vehicle type, electric vehicle type, technology, connectivity, bit size and region.

Based on vehicle type, Commercial Vehicles (CVs) are emerging as the fastest-growing segment, particularly due to the electrification of public transport, last-mile delivery vehicles, and logistics fleets. Fleets now demand remote diagnostics, predictive maintenance, and telematics-based tracking, all of which require microcontroller-driven systems. As governments and fleet operators shift toward smart logistics and emission reductions, commercial electric vehicles are integrating battery management systems and fleet intelligence platforms that are microcontroller-intensive. The higher focus on digitization and safety features in CVs, along with growing volumes of light-duty electric trucks and buses, will continue to spur the demand for embedded control systems, albeit from a lower base compared to passenger cars.

Based on region, Southern Vietnam, particularly the Ho Chi Minh City metropolitan area and neighboring provinces like Dong Nai and Binh Duong, is the fastest-growing region in the automotive microcontrollers market. Traditionally known for its logistics and commercial activity, Southern Vietnam is now witnessing rapid digitization and electrification of its public and private transportation systems. The region is seeing a sharp rise in demand for commercial EVs, two-wheelers, and logistics vehicles—segments that require integrated control systems powered by microcontrollers. Moreover, Southern Vietnam is a focal point for the startup ecosystem in IoT, telematics, and EV infrastructure, which directly complements the automotive electronics landscape. The government's smart city plans in Ho Chi Minh City also prioritize V2I (vehicle-to-infrastructure) connectivity and real-time traffic systems, boosting microcontroller demand in public transport and urban mobility vehicles. With more EV charging stations, smart parking initiatives, and last-mile connectivity solutions emerging in the south, the deployment of embedded systems and MCU-controlled architectures is accelerating faster here than in any other region in Vietnam.

 

Major companies operating in Vietnam Automotive Microcontrollers market are:

  • Toshiba Corporation
  • Maxim Integrated
  • Cypress Semiconductor Corporation
  • Analog Devices Inc.
  • Infineon Technologies AG
  • ON Semiconductor
  • Maxim Integrated
  • STMicroelectronics
  • Rohm Semiconductor
  • Renesas Electronics Corporation

 

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In recent years, with increasing digitization of vehicles, there is a growing emphasis on embedding cybersecurity and functional safety features into microcontrollers used in the Vietnamese market. ISO 26262 certification is becoming a non-negotiable for MCUs deployed in safety-critical applications such as braking or steering. At the same time, as connected vehicles become more prevalent, the threat of ECU hacking or data theft increases. This is prompting OEMs to demand secure MCUs with hardware root-of-trust (HRoT), secure boot, and encrypted flash memory. Suppliers like Infineon and Microchip have begun offering microcontrollers equipped with automotive-grade cryptographic modules to Vietnamese customers. Said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

"Vietnam Automotive Microcontrollers Market, By Vehicle Type (Passenger Cars, Commercial Vehicle), By Electric Vehicle Type (BEV, HEV, PHEV, FCEV), By Technology (Park Assist System, ACC, TPMS, Blind Spot Detection System), By Connectivity (V2V Connectivity, V2I Connectivity, V2C Connectivity), By Bit Size (8-Bit, 16-Bit, 32-Bit), By Region, Competition, Forecast & Opportunities, 2020-2030F”, has evaluated the future growth potential of Vietnam automotive microcontrollers market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision makers take sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the Vietnam automotive microcontrollers market.

 

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