Vietnam Car Rental Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

Vietnam Car Rental Market Trends and Insights

Tourism Rebound Drives Leisure Rentals

International visitor arrivals rose 68.3% during the first four months of 2024. The leisure surge translates directly into higher weekend and holiday bookings as travelers opt for self-drive journeys across Ha Long Bay, the Central Highlands, and the Mekong Delta. Vietnam’s 2025-2026 national campaign for sustainable tourism dovetails with rental firms’ plans to electrify fleets, aligning customer preference for eco-friendly choices with policy incentives. Extended public holidays and a growing culture of road trips among urban families sustain year-round demand. Rental operators increase fleet availability in peak vacation corridors, using dynamic pricing to capture seasonal spikes. As travel rebounds, occupancy ratios of short-term fleets have already returned to pre-pandemic peaks, lifting per-vehicle profitability.

Rising Disposable Incomes Among the Middle Class

Vietnam’s middle class reached 13% of the population in 2023 and continues to expand, driving a retail sales increase of 8.5% year-on-year through early 2024. Higher disposable income unlocks new demand for premium rental categories—from SUVs to luxury sedans—where clients prioritize vehicle condition, brand cachet, and concierge-level service. Rising affluence also broadens the user base for weekend getaways, turning self-drive trips into mainstream recreation rather than occasional indulgence. To differentiate offerings, rental firms respond with tiered loyalty programs, smartphone-based vehicle unlock, and complimentary add-ons like child seats. Premium demand encourages importers to expedite the arrival of luxury models despite high tariffs, creating a more diverse fleet mix. Ultimately, income gains cushion price elasticity, allowing operators to pass on cost inflation from tariffs or fleet upgrades without eroding volumes.

Shift Toward App-Based and Online Bookings

Online channels controlled 59.62% of the Vietnam car rental market in 2024, a share that is climbing as 77.93 million citizens—79.1% of the population—use the internet, paired with 162 million active mobile connections. Ho Chi Minh City's 100% e-administration milestone encourages consumers to transact digitally, and rental apps integrate e-wallets, chat-based customer support, and location tracking for a seamless experience^{[2]"HCMC Completes 100% Online Business Procedures,", Government Portal, chinhphu.vn} . For providers, real-time data analytics optimize fleet rotation, predictive maintenance, and targeted promotions, lifting utilization by double digits. Younger travelers, conditioned by ride-hailing norms, expect transparent pricing and instant confirmation, pressuring traditional counter-based operators. As digital adoption accelerates, providers invest in cybersecurity and AI-driven demand forecasting to maintain service uptime and customer trust.t.t.

Government Smart-Mobility Sandbox Projects

Vietnam’s National Intelligent Transport System covers projects slated through 2030, encompassing bright traffic lights, integrated tolling, and real-time congestion analytics^{[3]“National ITS Projects Announced,”, CafeF, cafef.vn}. For rental firms, smarter roads translate into shorter trip times, better route planning, and reduced idle fuel costs. Pilot schemes in Ho Chi Minh City showcase cashless metro payments that can easily bundle with car-sharing passes, enabling multimodal journey packages that are attractive to commuters. The ITS program also offers open APIs, allowing fleet managers to plug vehicles into city dashboards for enhanced asset security and utilization. Long-term, the sandbox frees operators to test subscription-based services or micro-rental models without onerous regulation. Successful pilots can then scale nationwide, deepening the digital ecosystem that underpins the Vietnam car rental market.

Urban Congestion and Limited Parking in Major Cities

Ho Chi Minh City commuters lose more hours annually to congestion, eroding rental vehicle productivity and inflating fuel costs. Parking shortages, especially in District 1 and Hanoi’s Old Quarter, lead to high overnight storage fees that operators must absorb or pass on. Policy moves such as Hanoi’s proposed gasoline-vehicle restrictions from 2030 inject uncertainty about fleet composition planning. While the ITS program promises future relief, near-term congestion forces rental companies to adopt telematics-enabled routing and penalty clauses for late returns. Customer satisfaction suffers when pickups are delayed or parking surcharges appear, nudging price-sensitive users toward alternatives.

Sparse EV-Charging Network Outside Tier-1 Cities

Despite V-Green’s milestone of 150,000 chargers, fewer than 10% are located in secondary cities, limiting BEV rentals for intercity trips. Ho Chi Minh City alone needs 3,000 public chargers by 2028, far above current counts. Range anxiety curbs demand among travelers heading to attractions like Sapa or the Central Highlands. Operators installing proprietary chargers face high capital expenditure and uncertain footfall. The International Energy Agency forecasts a requirement for 100,000–350,000 chargers over 15 years, underscoring the gap. Until coverage broadens, fleet electrification will remain anchored to urban itineraries, constraining BEV utilization rates and delaying payback on higher vehicle costs.

Segment Analysis

By Booking Type: Digital Platforms Drive Market Transformation

Online channels underpinned 59.62% of the Vietnam car rental market share in 2024, spotlighting the country’s rapid pivot to e-commerce. Mobile penetration above 160% enables travelers to secure vehicles minutes before pickup, while integrated e-wallets accelerate checkout. The segment’s anticipated 13.28% CAGR reflects convenience and cost efficiency, as digital platforms slash branch overheads and support dynamic pricing algorithms that lift utilization. Offline counters, holding 40.38%, still serve older demographics and corporate bookings requiring bespoke terms. Yet branch-based models face margin compression as foot traffic declines, prompting legacy firms to hybridize with click-and-collect services.

Traditional agencies leverage concierge experiences and personalized itinerary planning to retain loyalty, whereas online newcomers court price-sensitive segments with flash discounts and user-generated reviews. Platform operators invest in encryption and compliance certifications to preserve trust as regulatory frameworks around data privacy and payment security harden. The Vietnam car rental market benefits from this competition as service quality, fleet transparency, and post-trip feedback loops improve.

By Rental Duration: Short-Term Dominance Amid Flexibility Trends

Short-term rentals controlled 61.64% of the Vietnam car rental market size in 2024, buoyed by tourism rebound and growing corporate travel. Weekend trippers and business visitors embrace day-based contracts that avoid the hassles of ownership, congestion charges, and parking scarcity. Utilization peaks during public holidays such as Tet and Reunification Day, compelling firms to pre-position vehicles at airports and tourist hotspots. The segment’s 13.39% CAGR outlook remains tied to Vietnam’s projected 6-million-visitor milestone in 2026 and robust domestic vacation culture.

Long-term rentals, with 38.36% share, anchor revenue stability for operators. Corporate clients, expats, and diplomatic missions favor monthly contracts bundled with full-service maintenance, enabling predictable budgeting. IFRS 16 accelerates the shift, pushing fleets toward operational leases. Providers deploy telematics to monitor mileage caps and preventative servicing, safeguarding residual value. As foreign direct investment climbs and manufacturing parks proliferate, long-term rental demand spreads from traditional centers into provinces such as Quang Ninh and Dong Nai, diversifying geographic exposure.

By Application Type: Corporate Mobility Emerges as Growth Driver

Tourism and leisure retained a 63.28% share in 2024. Self-drive itineraries appeal to families seeking flexibility to explore coastal routes or cultural heritage circuits. Operators curate destination-specific packages with mileage grants, GPS-enabled tourist guides, and optional bilingual drivers. Yet corporate and expat mobility’s 13.52% CAGR signifies a structural pivot as global companies embed Vietnam deeper into supply chains. Contract durations extend to six or 12 months, and service-level agreements stipulate uptime guarantees, replacement vehicles, and emissions targets.

Daily commuting applications remain niche but stable, catering to urban professionals whose sporadic trips do not justify ownership. Multimodal pairing—rent-for-weekends plus ride-hail weekdays—blurs traditional segment lines and offers cross-sell possibilities. Rental companies use mobility-as-a-service (MaaS) dashboards to bundle cars with metro smartcards or e-bike credits, appealing to environmentally conscious millennials.

By Vehicle Propulsion: Electric Transition Accelerates Despite ICE Dominance

Internal-combustion cars still dominate with 89.38% share, benefiting from existing refueling infrastructure and lower sticker prices. However, rising fuel excise duties and congestion-related emissions taxes erode their cost advantage. Battery electric vehicles, posting a 15.41% CAGR, increasingly feature in premium and corporate fleets where total-cost-of-ownership calculus favors lower maintenance and energy costs. The Vietnam car rental market size for BEVs may still trail ICE volumes in absolute terms, but growth momentum is asymmetric as policy supports accelerate BEV parity.

Hybrids serve as transitional options, attracting clients wary of charging availability. VinFast’s expanding model lineup, bolstered by a second production plant in Ha Tinh, offers locally built options that bypass import duties. Rental agencies negotiate battery-leasing schemes that decouple residual value risk from battery degradation, enhancing fleet economics. Over time, residual ICE share will contract as provincial charging rollout fulfills network gap forecasts.

Note: Segment shares of all individual segments available upon report purchase

By End-User: Corporate Segment Drives Premium Growth

Individuals remain the dominant customer base with 66.82% share, encompassing domestic tourists, expatriates, and urban residents. Rising incomes foster willingness to pay for higher-trim vehicles, on-demand delivery, and value-added insurance. Customers increasingly book through mobile apps, supported by biometric verification and instant damage reporting. Operators emphasize customer experience with 24/7 multilingual hotlines and flexible extension policies.

Corporate users, at 14.19% CAGR, exhibit the most rapid expansion. Post-IFRS fleet outsourcing and ESG mandates propel long-term, larger-ticket contracts. Multinational electronics firms in Ho Chi Minh City’s Saigon Hi-Tech Park stipulate BEV uptake, influencing rental companies’ procurement strategies. Corporate clientele also spur ancillary revenue through driver services, telematics dashboards, and compliance reporting. Companies seek standardized service across multiple provinces, encouraging rental providers to scale footprints and adopt unified pricing structures.

Geography Analysis

Ho Chi Minh City and Hanoi anchor demand, capturing the lion’s share of bookings due to their roles as economic powerhouses and primary gateways. Tourist magnets like Da Nang and Nha Trang complement this core, thanks to direct international flight links and resort development. Robust 5G coverage and widespread e-wallet acceptance in these cities accelerate online booking penetration. Infrastructure upgrades, including Metro Line 1 in Ho Chi Minh City and Hanoi’s elevated rail, integrate seamlessly with app-based rental pickup zones, enhancing multimodal connectivity.

The National Intelligent Transport System’s deployment promises short-term congestion relief through smart signaling and real-time traffic analytics. Operators leverage open traffic data to reposition vehicles dynamically, curbing idle-time costs. Provincial expansion is underway as V-Green chargers appear along the North–South Expressway, unlocking intercity BEV rentals toward Vinh and Quy Nhon. Nghe An’s plan to run 20% of its buses on electricity by 2030 signals deeper electrification commitments beyond tier-1 regions.

Challenges persist: secondary cities suffer from patchy charging coverage and limited international arrivals, making fleet allocation risky. Operators test seasonal pop-up depots in Ha Long Bay during cruise season while partnering with local hotels for parking. Longer term, industrial corridors in Binh Duong and Bac Giang will attract corporate leasing, diversifying geographic revenue away from tourism-centric locales. Overall market penetration outside the big two metros remains low, but rising middle-class density in provinces heralds a new frontier for the Vietnam car rental market.