Vietnam Ride-Hailing Market Size (2024 - 2029)

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 growth of the ride-hailing market 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 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 market 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 market size and forecasts in terms of value (USD) for all the given segments.