Vietnam Car Rental Market –Ride Hailing and Taxi Services Outlook (2018-2027)

Vietnam Car Rental Market –Ride Hailing and Taxi Services Outlook (2018-2027)

Executive Summary

Vietnam car rental market has shown a strong growth momentum in the past and expected to grow at a CAGR of 7.34% during 2022-2027. The market recorded revenue of USD ~ billion in 2021. As of now the industry is on development stage nevertheless fragmented market is giving both domestic and international companies tremendous opportunities to enter into the market and capitalize on technical improvements while also taking the lead in numerous mergers and acquisitions. The car rental industry has only recently begun to approach levels seen elsewhere owing to the entry of significant international corporations. In Vietnam, demand for renting cars has been rising quickly in recent years, ranging from cheap to premium vehicles.

Key Driving Factors
Rise in International Tourists: The number of international visitors to Vietnam in the first eight months of 2022 has increased 13.7-fold from a year earlier, according to the Ministry of Tourism
Rise in Fuel Prices: Car rental companies, drivers, and passengers are affected by rising fuel prices and inflation.
Urbanization: In the long run, automobile rentals are anticipated to become one of the most well-known services offered in the urban transportation sector for local use, airport transit, and out-of-town travel due to Vietnam's increasing urbanization and development of the middle class.
Rising GDP Growth: Vietnam's economy has displayed remarkable resilience amid the pandemic around the globe. As a result of the post-pandemic global economic recovery, updated IMF forecasts for 2022 and 2023 indicates Vietnamese GDP growth of 6.6% and 6.8%, respectively.

Vietnam Car Rental Market Segmentation:
By Type of Service Providers (Traditional Taxi and Ride Hailing): Ride hailing service provers hold majority share in the market however traditional taxi providers are also giving tough competition.
Vietnam Car Rental Market Segmentation- by Type of Services (Self-Driven and Chauffeur Driven): Demand for each segment depends upon the target audience as domestic tourist generally prefer self-drive cars while chauffeur driven is common among business group and international travellers.
Vietnam Car Rental Market Segmentation – by Cities: Ho Chi Minh city dominated the Car Rental market in Vietnam in terms of revenue generation. Being the most populous city, it accounted for highest demand of car rental services.

Scope of the Study
Vietnam Car Rental Market–Ride Hailing and Taxi Services Outlook (2018-2027) is the latest edition published by Makreo research. In presence of uncertain economic conditions and dynamically changing competition in the market it is essential to stay updated with the current market developments therefore the report contains all major aspects of the industry. This report provides detailed analysis of the Vietnam car rental market with further discussion on ride hailing industry and traditional taxi market. The report also covers market performance by major cities in Vietnam. This is a detailed evaluation that helps the reader to review past, present and future outlook of the industry. After the COVID-19 outburst, market has experienced many changes from rise in fuel price, hike in fare to shift in consumer demand therefore it is essential to understand the future expected performance of the industry.

Vietnam Car Rental Market Segmentation
Type of Service Providers
Traditional Taxi
Ride Hailing
Type of Services
Self-Driven
Chauffeur Driven
Geographical Distribution
Discussed Major Cities including Ho Chi Minh, Hanoi and Others

Companies covered in the Vietnam Car Rental Market Report:
Company Profile - Traditional Taxi Service Providers
Company Profile – Ride Hailing Service Providers