Vietnam Taxi Market Size & Share Analysis - Growth Trends And Forecast (2026 - 2031)

The Vietnam taxi market size is valued at USD 1.70 billion in 2026 and is projected to reach USD 4.85 billion by 2031, advancing at a 23.28% CAGR through the forecast period. Fleet electrification mandates, rapid adoption of super-apps, and the post-pandemic tourism rebound underpin this expansion, while mounting urban congestion intensifies demand for pooled rides and last-mile connectivity. Super-app ecosystems that bundle payments, food delivery, and ride-hailing lift monthly trip frequency by roughly 30%, giving integrated platforms a structural advantage over legacy meter-cab operators. Battery-electric vehicles (BEVs) are gaining traction as Decision 876/QĐ-TTg waives registration fees and cuts the special consumption tax to 1%–3%, lowering the total cost of ownership within three years of purchase. Simultaneously, VinFast’s nationwide charging rollout and the State Bank’s interoperable QR-code standards are eroding historical barriers, such as range anxiety and cash handling, creating new revenue pools for operators that can scale electric fleets quickly.

More than 80% of Vietnamese consumers used at least one e-wallet account in 2024, with active accounts exceeding 50 million, driven by the integration of MoMo, ZaloPay, VNPay, and ShopeePay inside ride-hailing apps. QR-based checkouts eliminate cash friction, allowing dynamic pricing algorithms to trigger real-time fare adjustments and boosting monthly trip frequency among wallet-linked users by roughly 30%. Interoperable QR standards mandated by the State Bank further reduce switching costs, shifting competition toward service reliability and loyalty rewards. As a result, platforms with broad payment coverage lock in repeat usage and raise lifetime customer value.

Ho Chi Minh City’s traffic delays cost the local economy USD 6 billion each year^{[1]"Traffic congestion costs Ho Chi Minh City $6 billion each year," Vietnam News, news. tuoitre.vn}. At the same time, Hanoi’s gridlock drains up to USD 1.2 billion, aligning municipal policy behind pooled rides that curb vehicle-kilometer intensity. January 2025 congestion indices spiked 70% in HCMC and 61% in Hanoi. Although both cities have metro blueprints exceeding USD 60 billion combined, the whole network build-out will run beyond 2035. Pooled ride-hailing, therefore, serves as an immediate mitigation lever, providing fare discounts of 20%–30% and capping detour time penalties below the 15-minute tolerance threshold that sustains user adoption.

Decision 876/QĐ-TTg^{[2]"Decision 876/QD-TTg 2022 approves Action Program on Green Energy Transition, Reduction of Carbon and Methane Emissions in the Transport Sector," Luat Vietnam, luatvietnam.vn} requires that at least 50 % of urban vehicles overall should be powered by electricity or other green energy, cutting registration fees to zero and lowering the special consumption tax to as little as 1%. VinFast has committed to installing 150,000 charging ports, while Electricity Vietnam prepares grid upgrades and time-of-use tariffs to balance peak demand. Early adopters save on fuel and maintenance, and gain preferential access to charging slots, recouping the 40% higher upfront cost of BEVs within three years at current utilization rates.

Grab and Be Group integrate payments, food delivery, e-commerce, and insurance under unified loyalty programs that reward cross-service spending. GrabRewards and BePoints increase monthly active users by about 25% compared to single-service rivals, while Be Group’s USD 30 million VPBank credit line finances driver vehicle purchases at 5% interest, effectively integrating drivers into its network. The June 2025 debut of Be’s BE5X Centre added vehicle sales, financing, insurance, and maintenance, deepening ecosystem stickiness.

The regulatory compliance requirements under Decree 10/2020/ND-CP^{[3]"Decree 10/2020/ND-CP auto transport business and conditions for auto transport business," LuatVietnam, thuvienphapluat.vn} continue to constrain the operations of Vietnam's taxi and ride-hailing market. Although the decree does not explicitly cap vehicle additions in major metropolitan areas, it imposes stricter regulations on licensing, vehicle classification, signage, data reporting, and safety equipment for both traditional taxi operators and app-based service providers. These compliance measures increase entry barriers and hinder fleet expansion, particularly in Hanoi and Ho Chi Minh City, where local authorities enforce regulations more stringently and require more rigorous administrative approvals.

Platform commissions climbed to 27.27% by 2020, while nominal fares remained flat, pushing average monthly driver earnings down to roughly USD 280 and triggering 10-hour workdays that accelerated churn. Without fare floors or commission caps, operators face escalating labor shortages that necessitate higher subsidies and negatively impact profitability.