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

The Vietnam Taxi Market was valued at USD 1.54 billion in 2025 and expected to grow from USD 1.94 billion in 2026 to reach USD 4.62 billion by 2031, at a CAGR of 18.99% during the forecast period (2026-2031).

Vietnam is long and narrow, extending over 1,650 km north to south while varying in width between 50 km and 500 km. Most of the country's population resides along the coasts; Vietnam has a 3,260 km coastline on the South China Sea and the Gulf of Tonkin, as well as over 3,000 islands and extensive internal waterways. Accordingly, an exceptionally high share of freight is transported by water.

Taxis have become a primary mode of transportation in Vietnam. Following the 2016 implementation of Decision No. 24/QD-BGTVT by the Ministry of Transport, which aimed to reduce costs for Vietnamese taxis and mobile app booking services, demand for taxis in the country has surged. As more users turn to taxi services, the sector's revenue is poised for significant growth in the coming years. In addition, the rising popularity of taxis and aggressive marketing strategies focused on pricing and innovation have also intensified competition. For instance,

• Vingroup’s Xanh SM has rolled out its S2S (Secure to Safe) safety monitoring system across its electric taxi fleet. This move underscores a commitment to bolstering passenger safety, especially for vulnerable groups like children, women, and the elderly, and aligns with global safety benchmarks. The initiative also highlights Vingroup’s dedication to integrating advanced technology into its services to enhance user experience and safety.

Additionally, traditional taxi companies now find themselves competing with a wave of new global players entering the market. The integration of advanced technology, such as GPS tracking and cashless payment systems, has further enhanced the appeal of taxi services, making them more convenient and accessible for consumers. This technological advancement is expected to play a crucial role in shaping the competitive landscape of the sector in the forecast period.

According to the State Bank of Vietnam, over the past five years, the number and value of cashless payment transactions have surged by an average of 58.86% and 24.36% annually. Transactions via the internet saw a yearly uptick of 60.6% in number and 31.92% in value. Meanwhile, mobile phone transactions experienced a robust climb, with a 73.32% increase in volume and a 52.55% rise in value. QR code payments lead the pack, boasting a remarkable surge of 106.24% in volume and an even more impressive 128.15% in value. By December 2025, individual payment accounts crossed the 232 million mark, marking a 13.68% increase from the previous year. Bank cards in circulation also witnessed a boost, exceeding 164 million by December 2025, a year-on-year rise of 5.32%. From 2021 to 2025, domestic card transactions witnessed an average annual increase of 13.9%, with transaction values growing at a rate of 12.08% each year.

In Vietnam, traditional taxi services are a staple, offering a seamless way to navigate cities and tourist hotspots. Some of the major players dominate the landscape, ensuring reliable, metered transportation. This is attributed to their professional drivers and well-maintained vehicles, which contribute to their reputation for safety and reliability. Whether hailed on the street, found at designated stands, or booked via hotel services, these taxis have earned the trust of both locals and tourists alike. Additionally, their widespread availability makes them a convenient option for travelers seeking hassle-free transportation.

Increasing international tourist arrivals have consistently supported the growth of Vietnam's passenger car taxi market, as tourists often opt for online ride-hailing services due to their competitive pricing. As reported by the General Statistics Office of Vietnam, the country received 21.2 million foreign tourists in 2025, marking a 20.4% increase compared to 2024. The combination of convenience and the changing dynamics of urban mobility continues to drive demand for online passenger car taxi services in Vietnam. This growth is primarily attributed to the government's strategic initiative outlined in Resolution 11/NQ-CP, which aims to enhance the travel experience for tourists from Poland, the Czech Republic, and Switzerland. 

The initiative introduces short-term visa exemptions, simplifying travel procedures and encouraging tourists to explore. As a result, this measure is expected to drive a substantial increase in visitors from these nations, contributing to the local culture and economy throughout the year. This policy reflects the government's commitment to promoting international tourism and creating a welcoming environment for travelers seeking new destinations.

Travelers are opting for organized taxi services for sightseeing, aiming for a hassle-free way to visit must-see destinations. This rise in tourist numbers and transportation demand highlights the crucial role of reliable transportation in enhancing the travel experience in these key Vietnamese cities.

Vietnam's growing prominence as a destination for conferences, exhibitions, and business meetings has significantly increased the demand for reliable taxi services. The rise in business travel and international events has driven local taxi operators to enhance their services to meet this demand.

To address the growing needs, taxi companies are expanding their fleets to accommodate the increasing number of passengers. These expansions include investments in modern vehicles equipped with advanced technology to provide comfort, safety, and convenience for international travelers. 

Additionally, operators are focusing on improving service quality by training drivers in customer service and adopting practices that cater to a diverse clientele. These efforts not only fulfill the immediate requirements of tourists but also strengthen the competitive positioning of local businesses, ensuring a positive and memorable experience for visitors to Vietnam.

As a result, during 2025, Vietnam's passenger car taxi industry witnessed notable growth, driven primarily by a surge in tourism. The increased influx of travelers boosted the demand for transportation services, revitalizing the market and expanding the taxi segment.

In Vietnam, urbanization, technological advancements, infrastructure upgrades, rising disposable incomes, and a heightened focus on safety and security are fueling the demand for passenger car taxis. With these trends continuing to evolve, Vietnam's passenger car taxi market is set for further growth. Additionally, the surge in popularity of ride-hailing platforms like Xanh SM and Grab has bolstered this expansion, providing consumers with seamless access to taxi services via mobile apps.

Ho Chi Minh City, Vietnam's largest economic center and most populous city, stands as a pivotal transportation hub. This status fuels a robust demand for both traditional taxis and ride-hailing services. With a dynamic population, a thriving tourism sector, and bustling commercial areas, the city witnesses substantial daily taxi usage, keeping its streets lively around the clock.

Tourists are flocking to the region, and residents are increasingly opting for the convenience of private transport, fueling robust growth in the taxi and ride-hailing industry. Moreover, with the rising penetration of the internet and smartphone usage in Vietnam, accessing ride-hailing platforms has become easier, further propelling the adoption of these services. The number of tourists arrival in the province is anticipated to witness steady growth throughout the forecast period, bolstering the market's sustained growth.

Ho Chi Minh City recorded an estimated 8.5 million international visitors in Q4 2025, marking a 39% increase from the previous year. Domestic travelers exceeded 45 million, up 18.4%. The city’s total tourism revenue reached 260 trillion VND (approximately USD 10.7 billion). Similarly, Hanoi welcomed 33.7 million visitors, including 7.8 million international arrivals, representing a nearly 21% increase from 2024. Tourism revenue in the capital city reached 134.5 trillion VND (approximately USD 5.5 billion), up 21.5% year-over-year.  

As ride-hailing and taxi usage surges, the market is set for significant growth. A key driver of this uptick has been the influx of international tourists to Vietnam over recent years. Notably, Ho Chi Minh City, a favored destination for many tourists, has been at the forefront of this rapid industry expansion.

Ho Chi Minh Province grapples with a swiftly urbanizing population, limited public transport, and escalating traffic congestion. These challenges have spurred a heightened demand for private transportation. The lack of efficient public transit options has made private modes of transport, such as taxis and ride-hailing services, a preferred choice for many.

The government is pushing for electric vehicle adoption to foster a sustainable transportation ecosystem. These efforts not only combat climate change but also nurture the taxi and ride-hailing services in cities such as Ho Chi Minh City. As a result, the sector is poised to see increased investments, spur innovation, and bolster the growth of eco-friendly transportation solutions, reinforcing the market's upward trajectory.

In Vietnam's taxi market, traditional operators and tech-savvy ride-hailing platforms are locked in a battle for supremacy. Over the years, these companies have cultivated a reputation for reliability, primarily catering to customers who favor traditional booking methods and fixed pricing. Yet, they grapple with challenges: surging operational costs, from fuel to maintenance, and a rising consumer tilt towards the convenience of app-based services. In a bid to seize a larger slice of the market, players are broadening their horizons. For instance,

• In November 2025, Vingroup announced the launch of its EV taxi service, Xanh-SM, in Kazakhstan. The company intends to establish a representative office in Almaty to serve the Commonwealth of Independent States (CIS) region. Vingroup’s strategy includes deploying VinFast vehicles for its electric taxi service, setting up charging stations, and localizing its service and production facilities.
• In June 2025, Xanh SM and V-Green, integral to Vingroup's vision for a sustainable green ecosystem, collaborated with Vietnam Securities Investment JSC (CK Vietnam) to promote electric transportation in Nghe An province, Vietnam. This partnership seeks to redefine how residents and visitors interact with electric vehicles by integrating CK Vietnam's services into the user-friendly Green SM app. This integration simplifies vehicle booking, streamlines payment processes, and improves operational efficiency, supporting an eco-friendlier transportation system in the region.
• In April 2025, Xanh SM introduced the "Bike upgrade to Car" initiative, enabling its electric motorbike drivers in Hanoi and Ho Chi Minh City to transition into electric taxi drivers. Those holding a valid car license can access complimentary training, financial incentives, and career advancement assistance. This initiative not only promotes sustainable transportation but also enhances the earning potential for drivers making the switch from bikes to cars.