Vietnam E-Scooter Ride-Hailing & Leasing Market

Vietnam E-Scooter Ride-Hailing & Leasing Market Overview

• The Vietnam E-Scooter Ride-Hailing & Leasing Market is valued at USD 220 million, based on a five-year historical analysis. This growth is primarily driven by the increasing urban population, rising environmental awareness, and government initiatives promoting electric mobility. The demand for e-scooters has surged as consumers seek convenient and eco-friendly transportation options in densely populated urban areas .
• Key cities such as Ho Chi Minh City, Hanoi, and Da Nang dominate the market due to their high population density, traffic congestion, and a growing trend towards sustainable transportation. These urban centers have seen a rapid increase in e-scooter adoption, supported by local government policies and infrastructure development aimed at enhancing electric vehicle usage .
• In 2023, the Vietnamese government implemented regulations requiring all e-scooter operators to register their vehicles and comply with safety standards. This initiative aims to ensure the safety of riders and pedestrians while promoting the growth of the e-scooter market. The regulation mandates that all e-scooters must be equipped with safety features such as lights and reflectors, enhancing overall road safety. The operational framework is defined by Circular No. 58/2020/TT-BCA issued by the Ministry of Public Security, which stipulates registration procedures, safety equipment requirements, and compliance thresholds for electric two-wheelers .

Vietnam E-Scooter Ride-Hailing & Leasing Market Segmentation

By Type:The market is segmented into various types of e-scooters, including Electric Kick Scooters, Electric Mopeds, Electric Bicycles, Shared E-Scooters, Personal E-Scooters, and Others. Among these, Electric Kick Scooters and Shared E-Scooters are gaining significant traction due to their convenience and affordability, particularly in urban areas where short-distance travel is common. The increasing preference for electric kick scooters is driven by their lightweight design, ease of use, and suitability for last-mile connectivity, while shared e-scooters benefit from app-based rental models and flexible usage options .

By End-User:The end-user segmentation includes Individual Consumers, Corporate Clients, Tour Operators, and Government Agencies. Individual Consumers dominate the market as they seek affordable and flexible transportation solutions for daily commuting, while Corporate Clients and Tour Operators are increasingly adopting e-scooters for business purposes and tourism, respectively. The rise in individual consumer adoption is supported by low operating costs, modern design preferences, and environmental consciousness, while corporate and tourism segments leverage e-scooters for fleet management and guided tours .

Vietnam E-Scooter Ride-Hailing & Leasing Market Competitive Landscape

The Vietnam E-Scooter Ride-Hailing & Leasing Market is characterized by a dynamic mix of regional and international players. Leading participants such as Xanh SM (Green SM Bike), Grab Holdings Inc., Be Group JSC, VinFast, Selex Motors, Dat Bike, Yadea Vietnam, Niu Technologies, Ahamove, Mai Linh Group, Vinasun Corporation, Gojek Vietnam, E-Scooter Sharing Vietnam, Mobike (Vietnam Operations), Lime (Vietnam Operations) contribute to innovation, geographic expansion, and service delivery in this space.

Vietnam E-Scooter Ride-Hailing & Leasing Market Industry Analysis

Growth Drivers

• Increasing Urbanization:Vietnam's urban population is projected to reach approximately 44% in future, up from about 37% in the past, according to the World Bank. This rapid urbanization drives demand for efficient transportation solutions, particularly in congested cities like Ho Chi Minh City and Hanoi. The growing number of urban residents, estimated at over 40 million, necessitates innovative mobility options, making e-scooter ride-hailing and leasing services increasingly attractive for daily commutes and short trips.
• Rising Environmental Awareness:With air pollution levels in major Vietnamese cities often exceeding World Health Organization guidelines, public concern for environmental sustainability is escalating. The government aims to reduce greenhouse gas emissions by 8% in future, promoting electric mobility as a key strategy. This shift towards eco-friendly transportation options is fostering a favorable environment for e-scooter adoption, as consumers increasingly prefer sustainable alternatives to traditional gasoline-powered vehicles.
• Government Support for Electric Mobility:The Vietnamese government has allocated approximately $1 billion to support electric vehicle initiatives, including e-scooters, as part of its National Strategy for Green Growth. This funding is aimed at enhancing infrastructure and providing incentives for electric vehicle adoption. The government plans to establish a significant number of charging stations nationwide, significantly boosting the e-scooter market's growth potential and accessibility for consumers.

Market Challenges

• Regulatory Uncertainties:The e-scooter market in Vietnam faces significant regulatory challenges, with unclear licensing requirements and operational guidelines. Only a minority of local governments have established clear regulations for e-scooter operations, leading to confusion among operators and potential legal risks. This uncertainty can hinder investment and slow market growth, as companies may hesitate to enter or expand in the market without clear legal frameworks.
• High Initial Investment Costs:The average cost of an e-scooter ranges from $500 to $1,500, presenting a substantial barrier for new entrants in the ride-hailing and leasing market. Additionally, establishing a fleet and necessary infrastructure can require investments exceeding $2 million. These high initial costs can deter potential operators, limiting competition and slowing the overall growth of the e-scooter market in Vietnam, particularly among small and medium-sized enterprises.

Vietnam E-Scooter Ride-Hailing & Leasing Market Future Outlook

The future of the e-scooter ride-hailing and leasing market in Vietnam appears promising, driven by increasing urbanization and a growing emphasis on sustainable transportation. As the government continues to invest in electric mobility infrastructure, including charging stations and regulatory frameworks, the market is expected to attract more players. Additionally, the integration of smart technologies and shared mobility solutions will likely enhance user experience, making e-scooters a preferred choice for urban commuters seeking efficient and eco-friendly transport options.

Market Opportunities

• Expansion of Ride-Hailing Services:The ride-hailing sector in Vietnam is projected to grow to $3 billion in future, creating significant opportunities for e-scooter integration. Companies can leverage existing platforms to offer e-scooter options, catering to the increasing demand for flexible and convenient transportation solutions in urban areas.
• Development of Battery Swapping Stations:With the anticipated rise in e-scooter usage, establishing battery swapping stations can address charging infrastructure challenges. The market for battery swapping is expected to reach $500 million in future, providing a lucrative opportunity for businesses to enhance service efficiency and customer satisfaction in the e-scooter market.