Vietnam Car Rental Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 0.68 Billion |
| Market Size (2029) | USD 1.17 Billion |
| CAGR (2024 - 2029) | 13.82 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Vietnam Car Rental Market Analysis
The Vietnam Car Rental Market size is estimated at USD 0.68 billion in 2024, and is expected to reach USD 1.17 billion by 2029, growing at a CAGR of 13.82% during the forecast period (2024-2029).
Over the long term, with the rapid urbanization and rise of the middle class in Vietnam, car rental is expected to become one of the best-known services available in the urban transportation industry for local use, airport transportation, and out-of-town travel. The Vietnamese car rental market has grown quickly as a result of the increased internet penetration and the steady growth of the organized sector.
Technological advancement is also a key driver of the automotive equipment rental market, as car rental companies are increasingly utilizing digital technologies like the Internet of Things (IoT) and big data to enhance customer service, lower operational costs, and better manage their fleet. Companies are launching their value-added services in the market and strengthening their footprint in Vietnam.
Moreover, one of the most significant developments is the increasing popularity of electric and autonomous vehicles. As more car manufacturers invest in the research and development of these technologies, it is expected that the car rental industry will need to adapt to accommodate these new types of vehicles. For instance,
- In January 2024, Xanh SM, which is a new transportation brand launched in early 2023 focusing on sustainable growth, launched a short-term self-driving car rental service, Xanh SM Rentals. The company offers electric car rental packages with appealing price policies, attracting more than 15 million customers after only eight months of launch.
- Similarly, in April 2023, Green and Smart Mobility JSC (GSM) was established and launched in Vietnam as a multi-platform green transportation model. It operates with a fleet of 100% electric vehicles.
The major players such as The Hertz Corporation. VinFast, and others use connected car technologies as they provide data that can be used to understand their customers' needs and preferences better and offer personalized rental solutions.
However, heavy import duty taxes on electric vehicles are hindering the growth of the car rental market in Vietnam. The government is taking initiatives to expand EV manufacturing plants and charging infrastructure, such as the National Automobile Development Strategy (2021-2050) and the Vietnam Automobile Manufacturers Association (VAMA), which aims to stimulate manufacturing and significantly increase the use of e-vehicles with a planned annual production capacity of 3.5 million electric vehicles by 2040.
Vietnam Car Rental Market Trends
Online Segment Holds the Highest Share
- Rising internet users, coupled with the convenience of availing online services for rental services, serve as significant determinants for the growth of this market segment.
- According to the World Bank Data, the number of internet users in Vietnam was more than 80% in 2023, which acts as a major factor for the exponential rise in the share of online booking channels.
- The developments in smartphones and internet technology have brought considerable changes in the travel and transportation industry. It uses an online platform and apps to book the ride, and this helps to connect passengers and cars. For instance,
- According to the General Statistics Office of Vietnam, the average population in Hanoi amounted to approximately 8.43 million people. At least 95% of total households in Hanoi are expected to use at least one smartphone by 2025.
- Similarly, the postal-telecommunications infrastructure development plan drives the city’s digital transformation program to 2025 with a vision for 2030. The growing number of smartphone users and rising adoption of internet technology in Hanoi is attributed to the growth of mobility services in the province.
- Furthermore, online renting is increasingly preferred by consumers as they can avoid the hassle of visiting physical locations and comparing prices, car makes, and models. Online mediums also assist in expanding the choice base of consumers before deciding.
- The expanding tourism sector across Vietnam also contributes to the increasing demand for car rental services since international tourists can avail of online mediums to pre-book their desired vehicles.
- With the strategic government investment to develop and improve the region’s tourism sector, a massive demand is expected for renting cars through the online segment in the coming years.
- The government of Vietnam estimates 18 million international visitors and 120 million domestic tourists by 2025. The country is taking steps to make the tourism sector more sustainable, which may also boost its economy.
- Various companies, such as Momondo and Avis, are offering online booking services to locations like Hanoi, Ho Chi Minh City, and Da Nang to book various types of vehicles, from SUVs to hatchbacks. The other features include locking/unlocking cars via an app and watching the dash camera.
Commuting Holds the Highest Share
- Vietnam has witnessed an exponential rise in population growth with rising urbanization. There is a growing demand for convenient transportation options as people migrate to urban cities to seek employment for better living standards.
- People are adopting car rental services for daily commuting and shopping trips, which creates a positive impact on the market. Moreover, the focus on sustainable transportation to meet net zero emission goals is creating a consistent and growing customer base for taxi companies.
- For instance, the Vietnamese Ministry of Transport (MoT) has sought feedback on a proposed policy to boost the electric vehicle (EV) industry by offering a USD 1,000 subsidy to electric car buyers, a move that could accelerate the shift toward green, eco-friendly energy in the country.
- The various car rental companies in Vietnam, such as Grab’s Transportation Service, are making transitions in urban commuting, offering choices of diverse preferences and ensuring comfortable rides with a wide variety of vehicle choices, which allows users to select the option that best suits their needs and budget.
- The growth in technological advances, like the adoption of ride-hailing platforms, is improving the reach of taxi services in Vietnam. The various features offered by platforms include real-time tracking, driver ratings, and a secure, cashless transaction system. The other services, like quicker trips through traffic, have become an integral part of daily commuting in Vietnam.
- A local metered taxi is also considered a safe and reasonable way to travel as it is great for tourists who do not know about the area they are visiting.
- Considering the growth, new startup companies are focusing on increasing their fleet size and capacity to expand their user base and opting for funding options as well.
- Moreover, heavy investments from car rental service providers are expected to cater to the growing demand for electric vehicles by expansion of its fleets. The companies offer electric vehicles in different segments ranging from hatchbacks to high-end SUVs like BMW X5.
- For instance, in January 2024, Be Group announced that it received VND 739.5 billion (USD 40.4 million) in funding from VPBank Securities to complete its network expansion.
Vietnam Car Rental Industry Overview
The Vietnamese car rental market is consolidated and led by globally and regionally established players. The companies adopt strategies such as new product launches, collaborations, and mergers to sustain their market positions.
For instance, in March 2023, VinFast established a new electric car and scooter rental company in Vietnam. VinFast is part of a large Vietnamese conglomerate named VinGroup, which also uses VinFast EVs to promote green mobility.
Some of the major players in the market include Avis Budget Group, The Hertz Corporation, Hertz, Enterprise Holdings, Vinasun Corp., Mai Linh Group, and VN Rent a Car.
Vietnam Car Rental Market Leaders
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Enterprise Holdings
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Avis Budget Group
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Mai Linh Group
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Vinasun Corp
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The Hertz Corporation
*Disclaimer: Major Players sorted in no particular order
Vietnam Car Rental Market News
- September 2023: The Government of Vietnam had set a strategic vision for electric vehicle deployment and transportation sector decarbonization by approving the Action Program for green energy transition and carbon dioxide and methane emissions mitigation in transportation.
- May 2023: Ahamove, the on-demand transportation application in Vietnam, launched a self-driving electric car rental service for tourists to Da Nang, with the addition of electric cars in its fleet like VinFast VF e2 and VinFast VF34.
Vietnam Car Rental Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Increasing Penetration of Electric Vehicles for Rental Fuels
4.2 Market Restraints
4.2.1 Alternative Mode of Transport Options Hinder the Market's Growth
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in USD million)
5.1 By Booking Type
5.1.1 Online
5.1.2 Offline
5.2 By Rental Duration
5.2.1 Short-term
5.2.2 Long-term
5.3 By Application Type
5.3.1 Tourism
5.3.2 Commuting
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Vietnam Sun Corporation (Vinasun)
6.2.2 Mai Linh Group
6.2.3 Vina(Vietnam) Rent A Car
6.2.4 Grab Holdings Inc.
6.2.5 PT Gojek
6.2.6 Hertz Corporation
6.2.7 Enterprise Holdings
6.2.8 Avis Budget Group
6.2.9 Green and Smart Mobility JSC (GSM)
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Vietnam Car Rental Industry Segmentation
The Vietnamese car rental market covers the current and upcoming trends with recent technological developments. The report will provide a detailed analysis of various areas of the market by type, duration, and application. By booking type, the market is segmented as offline and online. By rental duration type, the market is segmented as short-term and long-term. By application type, the market is segmented into tourism and commuting.
The report offers market size and forecasts in value (USD) for all the above segments.
| By Booking Type | |
| Online | |
| Offline |
| By Rental Duration | |
| Short-term | |
| Long-term |
| By Application Type | |
| Tourism | |
| Commuting |
Vietnam Car Rental Market Research FAQs
How big is the Vietnam Car Rental Market?
The Vietnam Car Rental Market size is expected to reach USD 0.68 billion in 2024 and grow at a CAGR of 13.82% to reach USD 1.17 billion by 2029.
What is the current Vietnam Car Rental Market size?
In 2024, the Vietnam Car Rental Market size is expected to reach USD 0.68 billion.
Who are the key players in Vietnam Car Rental Market?
Enterprise Holdings, Avis Budget Group, Mai Linh Group, Vinasun Corp and The Hertz Corporation are the major companies operating in the Vietnam Car Rental Market.
What years does this Vietnam Car Rental Market cover, and what was the market size in 2023?
In 2023, the Vietnam Car Rental Market size was estimated at USD 0.59 billion. The report covers the Vietnam Car Rental Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Vietnam Car Rental Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Car Rental in Vietnam Industry Report
Statistics for the 2024 Car Rental in Vietnam market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Car Rental in Vietnam analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
