Vietnam has a well-developed tourism industry that attracts millions of tourists every year to visit the country. Bus travel is a popular and affordable way to see Vietnam, and with buses connecting most of the major towns and cities, it is very convenient for tourists and the demand for road passenger transportation is growing. With the economic development of the region, increased investment in infrastructure development, and the gradual improvement of highway conditions, Vietnam's bus industry has great potential for future development.
In 2022, Vietnam received only 3.6 million tourists, about 18% of the 19 million tourists before the Covid-19 pandemic. As the economy recovers and tourism gradually recovers, The analyst expects Vietnam's visitor arrivals to grow rapidly in 2023.
From 2018 to 2022, Vietnam's bus sales volume shows a general trend of first decline and then increase, with a CAGR of -22.19% from 2018 to 2022, and a 70.05% year-on-year decrease in sales in 2020, which is the largest five-year decline in the past.In 2022, Vietnam's bus sales volume for the whole year was 3,830 units, an increase of 87.75% year-on-year.
In December 2021, Vietnam's first electric bus was officially put into service in the city of Hanoi, which will invest about VND21 trillion ($887.27 million at the current exchange rate) over the next few years in replacing all gasoline- and diesel-powered buses with electric alternatives, according to an analysis. Vietnam's vinbus, a manufacturer of electric buses, said the number of buses replaced by electric buses in Hanoi will reach 225 by 2025, accounting for 21.3 percent of the total.
Under the Government Action Plan for Green Energy Transition and Reduction of Carbon and Methane Emissions, the Vietnamese government aims to have 100 percent of new public transit buses powered by electricity or green energy from 2025; at least half of all vehicles and all new cabs will be powered by electricity or green energy from 2030; and 100 percent of all buses and cabs will be powered by electricity or green energy by 2050.
With the recovery of Vietnam's tourism industry, the continued growth of the passenger transportation sector, and the gradual replacement of fuel buses by electric buses, The analyst expects Vietnam's bus sales to reach 25,900 units by 2032, growing at a compound annual growth rate (CAGR) of 13.2% over the 2023-2032 period.
The analyst suggests that for foreign-funded bus brands, they can initially enter the Vietnamese market through whole-vehicle export, or CKD, and if they get better results in the Vietnamese market, they can consider setting up their own factories in Vietnam, or looking for local partners to set up joint-venture factories in Vietnam.
Topics covered:
- Overview of the bus industry in Vietnam
- Economic and policy environment of the bus industry in Vietnam
- What is the impact of COVID-19 on the bus industry in Vietnam?
- Vietnam Bus Industry Market Size, 2023-2032
- Analysis of Major Vietnamese Bus Industry Manufacturers
- Key Drivers and Market Opportunities in Vietnam Bus Industry
- What are the key drivers, challenges and opportunities for the bus industry in Vietnam during the forecast period 2023-2032?
- Which are the key players in the Vietnam Bus Industry market and what are their competitive advantages?
- What is the expected revenue of Vietnam Bus Industry market during the forecast period of 2023-2032?
- What strategies have been adopted by the key players in the market to increase their market share in the industry?
- Which segment of the Vietnam Bus Industry market is expected to dominate the market by 2032?
- What are the major unfavorable factors facing the bus industry in Vietnam?
Table of Contents
Companies Mentioned
- Hoang Long Bus
- Sinh Cafe Bus
- Phuong Trang FUTA Bus
- Mai Linh Bus
- VinBus
Methodology
Background research defines the range of products and industries, which proposes the key points of the research. Proper classification will help clients understand the industry and products in the report.
Secondhand material research is a necessary way to push the project into fast progress. The analyst always chooses the data source carefully. Most secondhand data they quote is sourced from an authority in a specific industry or public data source from governments, industrial associations, etc. For some new or niche fields, they also "double-check" data sources and logics before they show them to clients.
Primary research is the key to solve questions, which largely influence the research outputs. The analyst may use methods like mathematics, logical reasoning, scenario thinking, to confirm key data and make the data credible.
The data model is an important analysis method. Calculating through data models with different factors weights can guarantee the outputs objective.
The analyst optimizes the following methods and steps in executing research projects and also forms many special information gathering and processing methods.
1. Analyze the life cycle of the industry to understand the development phase and space.
2. Grasp the key indexes evaluating the market to position clients in the market and formulate development plans
3. Economic, political, social and cultural factors
4. Competitors like a mirror that reflects the overall market and also market differences.
5. Inside and outside the industry, upstream and downstream of the industry chain, show inner competitions
6. Proper estimation of the future is good guidance for strategic planning.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 60 |
| Published | August 2023 |
| Forecast Period | 2023 - 2032 |
| Estimated Market Value in 2023 | 8.5 Thousand Units |
| Forecasted Market Value by 2032 | 25.9 Thousand Units |
| Compound Annual Growth Rate | 13.2% |
| Regions Covered | Vietnam |
| No. of Companies Mentioned | 5 |
