The economy's stable growth rate and the strong development of the tourism industry are attracting foreign car rental brands to Vietnam.
Through cooperation with New City Rent a Car, Hertz will provide a wide range of services in Vietnam that fit the demand and budgets of customers.
Hertz has car rental brands targeting three groups of customers. Hertz is a luxury car rental brand targeting the high-end market. The Dollar brand is for families which want to rent cars for their tourism plans at reasonable costs. Thrifty tries to satisfy the demand of customers who want the service at affordable costs.
Hertz services will be available in Hanoi later this year, according to chair of New City Rent A Car’s Nim Vuon Phu. With the service development, customers will be able to pick up and return cars at many different points.
Eoin MacNeill, vice president of Hertz Asia Pacific, said he is impressed with the great development potential of Vietnam with stable high GDP growth rates. The tourism industry has been developing with 15 million foreign investors coming to Vietnam in 2018, and the figure is expected to rise to 20 million the next year.
Hertz joins the Vietnamese market to satisfy demand for renting cars from foreign travelers and enterprises, especially large ones and multi-nationals in Vietnam.
|The economy's stable growth rate and the strong development of the tourism industry are attracting foreign car rental brands to Vietnam.|
Citing figures about the rapid growth in number of tourists in large cities, Phu affirmed that Vietnam has great potential for car rental services.
In 2018, HCM City led the country with 36.5 million travelers, including 7.5 million international tourists. Hanoi attracted 28 million travelers.
Other foreign car rental brands came to Vietnam before Hertz. Enterprise, with 60-year operation in the US, is one of them.
Like other foreign companies, Enterprise is present in Vietnam through the franchise mode. The franchisee is MP Executive of MP Logistics.
The market segment includes customers from enterprises, high-ranking foreign personnel who have demand for long-term cars, and tour organizers.
Technology platforms have also joined the market. In 2017, chungxe.vn turned up, helping connect customers who have demand for self-driving vehicles (cars, motorbikes) with car rental units or individuals with idle vehicles, via website or app.
The low car ownership rate has also helped. A report shows that 23 out of every 1,000 people in Vietnam have cars, while the figures are 80 in Thailand and 900 in the US.
The HCM City People’s Committee has instructed the Department of Transport to co-ordinate with districts to identify more streets to be used for parking cars.
With booming online sales, e-commerce exchanges have set their sights on the automotive industry.