Vietnam’s Bus Industry
Vietnam’s bus industry is poised for significant growth in the coming years. With its large population, diverse landscape, and a well-developed tourism sector, Vietnam presents a promising market for commercial buses, both in metropolitan areas and remote regions with limited infrastructure.
In 2022, Vietnam welcomed 3.6 million tourists, representing only 18% of the pre-COVID-19 pandemic numbers. However, as the economy rebounds and tourism gradually recovers, experts expect a rapid increase in visitor arrivals in 2023, further driving the demand for road passenger transportation.
The Vietnamese government has been investing in infrastructure development, improving highway conditions, and promoting green energy transition and emission reduction. Notably, in December 2021, Hanoi introduced its first electric bus, signaling a shift toward sustainable transportation. Vietnam’s VinBus, a manufacturer of electric buses, aims to replace 225 gasoline and diesel-powered buses with electric alternatives by 2025, accounting for 21.3% of the total.
Under the Government Action Plan for Green Energy Transition, Vietnam plans to have 100% of new public transit buses powered by electricity or green energy by 2025. Additionally, at least half of all vehicles and all new cabs will run on electricity or green energy by 2030, with a goal of reaching 100% by 2050.
The recovery of Vietnam’s tourism industry, the continuous growth of passenger transportation, and the shift from fuel-powered to electric buses are expected to drive significant growth in the Vietnam’s bus industry. Research Report [Vietnam Bus Industry Research Report 2023-2032] from CRI suggests that Vietnam’s bus sales could reach 25,900 units by 2032, with a compound annual growth rate (CAGR) of 13.2% between 2023 and 2032.
For foreign-funded bus brands interested in entering the Vietnamese market, there are opportunities through whole-vehicle export (CKD) initially. If successful, they may consider establishing their own factories in Vietnam or forming joint ventures with local partners to capitalize on the growing market.
As the bus industry in Vietnam prepares for this transformative period, it offers substantial opportunities for businesses to thrive in a dynamic and evolving market.
Related: Philippine Electric Vehicle Industry Poised for Growth 2023-2032