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. Read More

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. Read More

Vietnam Car Rental Market Size

Market Size of Vietnam Car Rental Industry

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 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

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Vietnam Car Rental Market Size Summary

The car rental market in Vietnam is experiencing significant growth, driven by shifts in consumer behavior and economic factors. The COVID-19 pandemic has led to a preference for personal mobility, with car rentals emerging as a secure and cost-effective alternative to ride-hailing services. This trend is supported by rapid urbanization and the expansion of the middle class, which is increasing demand for car rental services for local use, airport transportation, and out-of-town travel. The market is further bolstered by the rise of the organized sector and increased internet penetration, making car rentals more accessible. Government policies promoting foreign travel and regulating car imports are also contributing to the market's expansion, offering opportunities for industry participants to tap into untapped potential.

The Vietnamese car rental market is characterized by a diverse range of rental options, including daily, overnight, and vacation rentals, with self-driving services gaining popularity. The market is fragmented, with major players like Avis Budget, Hertz, and Vinasun actively expanding their presence in key cities such as Ho Chi Minh City and Hanoi. The growth is also fueled by the increasing number of inbound tourists and expatriates, as well as the expansion of the tourism industry. The introduction of environmentally friendly technologies, such as electric vehicles, and the development of smartphone apps are expected to enhance competition and convenience. The market's expansion is supported by rising business travel demand, improved airport infrastructure, and increased passenger traffic, making Vietnam a promising destination for car rental services.

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Vietnam Car Rental Market Size - Table of Contents

1. MARKET DYNAMICS
1. 1.1 Market Drivers
  1. 1.1.1 Increasing Penetration of Electric Vehicles for Rental Fuels
2. 1.2 Market Restraints
  1. 1.2.1 Alternative Mode of Transport Options Hinder the Market's Growth
3. 1.3 Porter's Five Forces Analysis
  1. 1.3.1 Threat of New Entrants
  2. 1.3.2 Bargaining Power of Buyers/Consumers
  3. 1.3.3 Bargaining Power of Suppliers
  4. 1.3.4 Threat of Substitute Products
  5. 1.3.5 Intensity of Competitive Rivalry
2. MARKET SEGMENTATION (Market Size in USD million)
1. 2.1 By Booking Type
  1. 2.1.1 Online
  2. 2.1.2 Offline
2. 2.2 By Rental Duration
  1. 2.2.1 Short-term
  2. 2.2.2 Long-term
3. 2.3 By Application Type
  1. 2.3.1 Tourism
  2. 2.3.2 Commuting