How Is COVID-19 Impacting Vietnam Micromobility Market?

The major drivers for the Vietnamese micromobility market are the worsening issues of traffic congestion and urban parking and favorable economics of these commuting services. Boosted by these factors, the providers of such services in the country can hope to make a combined $10,227.2 million in 2030, compared to $89.9 million in 2020. This increase in the market revenue will likely be at a CAGR of 66.0% between 2021 and 2030 (forecast period). Micromobility exclusively involves two-wheelers, mostly those driven by electricity.

Vietnam Micromobility Market - P&S Intelligence 

The vehicle type segment of the Vietnamese micromobility market is categorized into e-scooters, e-mopeds, e-bikes, e-pods, scooters, and bikes. Among these, the e-mopeds category is predicted to generate the highest revenue for the industry players all through the forecast period. This would be on account of the large tech-savvy and young population of the country, which finds this means of commute extremely fun. Further, the growing tourist inflow to Vietnam, driven by its French heritage, UNESCO-listed Ha Long Bay, and delicious seafood, is propelling the usage of e-mopeds.

A key driver for the Vietnamese micromobility market is the growing problem of traffic congestion, especially in the major cities, including Hanoi and Ho Chi Minh City. The cities’ roads already have more vehicles than they can handle, and with people continuing to pour in from rural pockets, the problem is worsening. Micromobility could help alleviate this issue to a great extent as it involves only two-wheelers, which require less space on the roads and for parking.

The COVID-19 pandemic has further boosted the demand for such transport services. While the service demand was relatively low during the lockdown, it is now picking up. The fear of infection and need to maintain social distancing have made many people shun conventional means of public transit, such as buses, especially for short distances. In micromobility, commuters drive the automobile themselves, therefore face a relatively lower risk of infection. Thus, since the lifting of the lockdown, the market has been witnessing robust growth in the country.

However, the biggest reason for the advance of the Vietnamese micromobility market is the economical nature of these services. Compared to traditional shared mobility, such as carsharing and ride hailing, micromobility is cheaper. To rent an associated two-wheeler, people need to pay merely $0.86 on average for an hour of commute, after an initial fee. Moreover, such services help people travel the first and last miles, which is essentially the distance between the home, office or college and the metro station or bus stop.

Therefore, as these services are eco-friendly, cheap, and convenient for commuters, their popularity will grow in Vietnam in the coming years.