Vietnam Ride-Hailing Market Size (2024 - 2029)

The ride-hailing market size in Vietnam is experiencing significant growth, driven by the increasing urban population, limited public transportation options, and rising traffic congestion. This growth is further supported by consumers' preference for convenient private transportation and the influx of tourists. The market is characterized by the emergence of a young, tech-savvy population and heightened competition among digital service providers. Industry players are actively launching new services and making investments to expand their offerings in rides, delivery, and digital financial services, responding to the growing demand fueled by smartphone usage.

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Market Size of Vietnam Ride-Hailing Industry

Vietnam Ride-Hailing Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 0.88 Billion
Market Size (2029) USD 2.16 Billion
CAGR (2024 - 2029) 19.50 %
Market Concentration High

Major Players

Vietnam Ride-Hailing Market Major Players

*Disclaimer: Major Players sorted in no particular order

Vietnam Ride Hailing Market Analysis

The Vietnam Ride-Hailing Market size is estimated at USD 0.88 billion in 2024, and is expected to reach USD 2.16 billion by 2029, growing at a CAGR of 19.5% during the forecast period (2024-2029).

With Vietnam’s rapidly growing urban population, the lack of public transportation options, and increasing traffic congestion, the demand for private modes of transportation has gone up in recent years. Consumers’ increasing preference toward availing private transportation for traveling purposes owing to the rising need for convenience in personal mobility and the growing number of tourists in Vietnam serve as major determinants for the market growth of the ride-hailing industry in Vietnam. 

Additionally, the rise in travel and tourism and the emergence of a young and tech-savvy population have further fueled the adoption of ride-hailing services. Platforms like Xanh SM, Grab, and Gojek are emerging as dominant players in the digital side of Vietnam’s ride-hailing market. 

Moreover, the sector analysis shows that the ride-hailing and delivery markets are becoming increasingly competitive as increasing smartphone usage fuels demand for digital services. Seeing the demand, industry players are focusing on new service launches and investments to expand their rides, delivery, and digital financial services, as well as new ventures into new markets and segments of the consumer and transportation sectors. For instance: 

In December 2023, Xanh SM officially announced the launch of Xanh Express delivery service on its Xanh SM application, which is offered through electric motorbikes. The service was deployed simultaneously in five provinces and cities operating the Xanh SM Bike Service.

Vietnam Ride Hailing Industry Segmentation

A ride-hailing service refers to ridesharing services that, via website and mobile applications, match passengers with vehicle drivers for hire that cannot be legally hailed from the street. 

The Vietnamese ride-hailing industry analysis report is segmented by vehicle type, propulsion type, and province. By vehicle type, the market is segmented into passenger cars and motorcycles. By propulsion type, the market is segmented into internal combustion engines (ICE) and electric engines. By province, the market is segmented into Hanoi, Ho Chi Minh, Binh Duong, Dong Nai, Ba Ria-Vung Tau, Hai Phong, Quang Ninh, Bac Ninh, Thanh Hoa, Nghe An, and others. The report offers industry size and forecasts in terms of value (USD) for all the given segments. 

By Vehicle Type
Passenger Cars
Motorcycles
By Propulsion Type
Internal Combustion Engine (ICE)
Electric
By Province
Hanoi
Ho Chi Minh
Binh Duong
Dong Nai
Ba Ria-Vung Tau
Hai Phong
Quang Ninh
Bac Ninh
Thanh Hoa
Nghe An
Other Provinces
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Vietnam Ride-Hailing Market Size Summary

The ride-hailing market in Vietnam is experiencing significant growth, driven by the country's rapidly expanding urban population, limited public transportation options, and increasing traffic congestion. This has led to a heightened demand for private transportation solutions, with consumers increasingly favoring the convenience of ride-hailing services. The market is further bolstered by a surge in travel and tourism, alongside a young, tech-savvy demographic that is quick to adopt digital services. Key players such as Xanh SM, Grab, and Gojek are leading the charge in this digital transformation, offering a range of services that cater to the evolving needs of Vietnamese consumers. The competitive landscape is intensifying as these companies expand their offerings and invest in new technologies to capture a larger share of the market.

The market's expansion is also supported by the growing penetration of smartphones and mobile applications, which facilitate easy access to ride-hailing services. This trend is complemented by the increasing adoption of electric vehicles, which aligns with the government's initiatives to reduce traffic congestion and greenhouse gas emissions. Ho Chi Minh City, with its large population and significant traffic challenges, serves as a key market for ride-hailing services, benefiting from improved internet connectivity and government support for green mobility. The market is moderately consolidated, with major players engaging in strategic partnerships, mergers, and expansions to strengthen their market positions. As the industry continues to evolve, the focus on sustainability and technological innovation is expected to drive further growth in the coming years.

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Vietnam Ride-Hailing Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 Increased Travel and Tourism to Provide Long-term Momentum in Market

      2. 1.1.2 Increased Internet and Smartphone Penetration to Drive Market Demand

    2. 1.2 Market Challenges

      1. 1.2.1 Volatility in Fuel Price to Hamper Market Growth over Short-Term

    3. 1.3 Industry Attractiveness - 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. 2. MARKET SEGMENTATION (Market Size by Value in USD billion, Volume in Number of Trips)

    1. 2.1 By Vehicle Type

      1. 2.1.1 Passenger Cars

      2. 2.1.2 Motorcycles

    2. 2.2 By Propulsion Type

      1. 2.2.1 Internal Combustion Engine (ICE)

      2. 2.2.2 Electric

    3. 2.3 By Province

      1. 2.3.1 Hanoi

      2. 2.3.2 Ho Chi Minh

      3. 2.3.3 Binh Duong

      4. 2.3.4 Dong Nai

      5. 2.3.5 Ba Ria-Vung Tau

      6. 2.3.6 Hai Phong

      7. 2.3.7 Quang Ninh

      8. 2.3.8 Bac Ninh

      9. 2.3.9 Thanh Hoa

      10. 2.3.10 Nghe An

      11. 2.3.11 Other Provinces

Vietnam Ride-Hailing Market Size FAQs

The Vietnam Ride-Hailing Market size is expected to reach USD 0.88 billion in 2024 and grow at a CAGR of 19.5% to reach USD 2.16 billion by 2029.

In 2024, the Vietnam Ride-Hailing Market size is expected to reach USD 0.88 billion.

Vietnam Ride Hailing Market Report Snapshots

Ride-hailing Market in Vietnam Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)