Vietnam Car Rental Market Size (2024 - 2029)

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.