Vietnam Two Wheeler Market, By Vehicle Type (Scooter/Moped, Motorcycle), By Engine Capacity (Up to 125cc, 126cc- 250cc, 251-500cc, Above 500cc), By Propulsion (ICE, Electric), By Region, Competition, Forecast & Opportunities, 2021-2031F

Key Insights	Details
Forecast Period	2027-2031
Market Size (2025)	USD 1.12 Billion
CAGR (2026-2031)	12.33%
Fastest Growing Segment	Electric
Largest Market	Southern Vietnam
Market Size (2031)	USD 2.25 Billion

Market Overview

The Vietnam Two Wheeler Market will grow from USD 1.12 Billion in 2025 to USD 2.25 Billion by 2031 at a 12.33% CAGR. The Vietnam two-wheeler market encompasses motorcycles, scooters, and mopeds, serving as the primary mode of personal transportation across the nation. This market's growth is fundamentally supported by several key drivers, including Vietnam's high population density and ongoing urbanization, which create a persistent demand for agile and cost-effective mobility solutions amidst traffic congestion. Additionally, a rising middle class with increasing disposable incomes contributes to sustained purchasing power. According to the Vietnam Association of Motorcycle Manufacturers (VAMM), total sales in 2025 reached 2,615,057 units, indicating a slight decline from the previous year.

However, a significant challenge impeding market expansion is the evolving regulatory landscape. Government initiatives aimed at reducing the number of traditional internal combustion engine two-wheelers in major urban centers, such as the proposed restrictions in Hanoi by July 2026, present a considerable hurdle for manufacturers and consumers alike. This policy shift necessitates substantial adaptation within the industry.

Key Market Drivers

Income Growth Drives Demand for Upgraded and Eco-Friendly Two-Wheelers
Rising disposable incomes and an expanding middle class significantly influence the Vietnam two-wheeler market by bolstering consumer purchasing power and encouraging upgrades to more advanced or premium models. This economic progression enables a broader segment of the population to invest in newer, more feature-rich, or environmentally friendly two-wheelers. According to Government News, quoting preliminary findings of the Household Living Standards Survey 2025 from the National Statistics Office, average per capita income in Vietnam for 2025 was estimated at VND5.9 million ($225) per month, marking a 9.3 percent increase from 2024. This upward trend in earnings directly translates into sustained demand for personal mobility solutions, including electric two-wheelers, as consumers prioritize convenience and modern transportation options in increasingly urbanized areas.

Policy Support for Electric Two-Wheelers Accelerates Market Growth
Government policies promoting electric two-wheelers represent another critical driver, actively shaping the market's future towards sustainable mobility. These initiatives, driven by environmental concerns and a desire to alleviate traffic congestion, are creating a supportive regulatory framework for electric vehicle adoption. For instance, in 2025, VinFast reported preliminary domestic deliveries of 406,453 electric scooters, demonstrating significant growth and reflecting the acceleration of Vietnam's transition from traditional fuel-powered two-wheelers. Such policies, including potential restrictions on internal combustion engine two-wheelers in major urban centers, foster a shift in consumer preference and necessitate adaptation across the industry. Overall, Honda Vietnam sold nearly 2.3 million motorcycles in fiscal year 2026, highlighting the continued large scale of the market amid these evolving trends.

Download Free Sample Report

Key Market Challenges

Regulatory Push to Phase Out ICE Two-Wheelers Heightens Market Uncertainty
The evolving regulatory landscape represents a significant impediment to the growth of the Vietnam two-wheeler market. Government initiatives, particularly those aimed at phasing out traditional internal combustion engine (ICE) two-wheelers in major urban centers such as the proposed restrictions in Hanoi by July 2026, directly challenge established market dynamics. This policy shift introduces substantial uncertainty for both manufacturers and consumers.

Manufacturers' Retooling Burden and Shifting Consumer Demand Under Regulation
Manufacturers must contend with the necessity of retooling production lines and investing in alternative vehicle technologies, which entails considerable capital expenditure and operational adjustments. This burden can impact profitability and the pace of new product introductions within the traditional ICE segment. Concurrently, consumers face the prospect of limitations on the usage of their vehicles, influencing purchasing decisions and potentially leading to a deceleration in sales of conventional models. According to the Vietnam Association of Motorcycle Manufacturers (VAMM), total sales in 2024 were 2,653,607 units. This substantial volume indicates the market's reliance on traditional models, which now face increasing pressure due to the impending regulatory changes.

Key Market Trends

Infrastructure expansion for battery-swapping and charging drives market expansion
Expanding battery swapping and charging infrastructure is a pivotal trend in the Vietnam two-wheeler market, directly addressing range anxiety and convenience concerns for electric vehicle users. This development is fostering greater confidence in electric two-wheelers by establishing a robust support ecosystem that parallels traditional refueling. The proliferation of accessible charging and swapping points significantly reduces downtime for riders, making electric alternatives more practical for daily commutes and commercial operations. According to the Department of Construction, May 27, 2026, in 'Ho Chi Minh City makes breakthrough in green transport expansion', Ho Chi Minh City has announced 4,000 locations for battery-swapping stations over the past year, with approximately 1,200 already equipped to serve electric motorbike users. This rapid deployment underscores the commitment to building out the necessary infrastructure for widespread electric two-wheeler adoption, driving market expansion.

Shift to subscription and shared mobility for electric two-wheelers
The emergence of subscription and shared mobility services also represents a significant trend, shifting consumer perspectives from outright ownership to flexible access for two-wheelers, particularly electric models. These services lower the entry barrier for consumers and businesses to adopt electric two-wheelers, offering cost-effective and convenient alternatives to personal ownership. Such models cater to the dynamic urban environment and evolving consumer preferences for flexible transportation solutions. According to The Business Times, January 27, 2026, in 'Vietnam's e-scooters rise on policy tailwinds, eroding petrol bike sales', Ho Chi Minh City has outlined a draft roadmap to convert 400,000 ride-hailing motorbikes to electric vehicles by 2029, with an interim target of 30 percent by the end of 2025. This strategic push towards electric shared mobility highlights a fundamental shift in transportation models within major urban centers, driven by environmental goals and operational efficiency.

Segmental Insights

Policy incentives and expanding charging infrastructure propel electric two-wheelers.
The Electric segment is emerging as the fastest-growing in the Vietnam Two-Wheeler Market, driven by a confluence of supportive factors. Government initiatives, including favorable tax policies and registration fee exemptions, actively promote the adoption of electric vehicles as part of broader green transportation strategies. This is further complemented by rising consumer environmental awareness concerning urban air quality and increasing fuel costs, making electric models an attractive, cost-efficient alternative. Additionally, advancements in battery technology and the expansion of charging infrastructure, particularly battery-swapping networks by key domestic players, significantly enhance convenience and practicality for daily urban commuting, solidifying the segment's rapid expansion.

Regional Insights

Southern Vietnam Leads the Market: Dense Population, Strong Growth, and Urban Mobility Demand
Key regional insights for the Vietnam Two-Wheeler Market highlight Southern Vietnam, led by Ho Chi Minh City, as the leading region. This dominance is primarily driven by its high population density and robust economic growth, which together foster a booming service economy and extensive commercial activities. The region's substantial urbanization and persistent traffic congestion necessitate agile and efficient transportation, making two-wheelers an indispensable mode for both personal commuting and the thriving gig economy, including numerous ride-hailing and delivery services. Moreover, a growing middle class with increasing disposable incomes consistently fuels demand for new vehicles and associated services.

Recent Developments

• In September 2025, Dat Bike, a Vietnamese electric motorbike manufacturer, successfully secured $22 million in fresh funding, almost doubling its capital. This substantial investment was earmarked for expanding the company's manufacturing capacity, strengthening its market presence within Vietnam, and fostering the development of new electric two-wheeler products. The funding demonstrated growing investor confidence in Vietnam's dynamic electric vehicle sector and Dat Bike's strategic efforts to compete effectively against established industry players. The company also announced plans to commence a pilot program in Thailand by year-end, signaling its international expansion ambitions.
• In April 2025, Honda Vietnam commenced official sales of its first locally produced electric motorcycle, the Honda ICON e:, manufactured at its facility in Vinh Phuc Province. This launch represented a strategic entry for the dominant two-wheeler manufacturer into Vietnam's rapidly expanding electric vehicle segment. The ICON e: was positioned as an affordable option, with a target price below VND 29 million (approximately US$1,134, excluding the battery). Equipped with a 1.5kW lithium-ion battery, the scooter provided a 50km range on a full charge and allowed for flexible charging options, either onboard or independently.
• In October 2024, Piaggio Vietnam participated in the Green Economy Forum and Exhibition (GEFE 2024) in Ho Chi Minh City, showcasing three significant technological innovations relevant to the Vietnam two-wheeler market. The company featured the Vespa Elettrica, highlighting its blend of iconic design with advanced electric technology for emission-free commuting. Additionally, Piaggio presented the Piaggio 1, an e-scooter designed for urban mobility with a focus on quality and safety. This demonstration underscored Piaggio's commitment to delivering green European innovations and sustainable solutions to Vietnamese consumers.
• In April 2024, Pega Vietnam Electric Vehicle Company launched the Pega eSmart AI electric motorcycle in Vietnam. This new product was notably developed by Vietnamese individuals, signaling significant local innovation within the two-wheeler market. The eSmart AI was introduced in two versions, offering impressive ranges of 110km and 160km per charge, with prices set at VND 42 million and VND 50 million, respectively. A key breakthrough research highlight of this model was its intelligent electric motorcycle system featuring a virtual assistant and a touchscreen, providing advanced connectivity and user interaction. This launch aimed to meet the evolving consumer demand for advanced, sustainable urban mobility in Vietnam.

Key Market Players

• Honda
• Yamaha
• Suzuki
• Kawasaki
• TVS Motor
• Bajaj Auto
• Hero MotoCorp
• Royal Enfield
• Piaggio
• KTM

By Vehicle Type	By Engine Capacity	By Propulsion	By Region
Scooter/Moped Motorcycle	Up to 125cc 126cc- 250cc 251-500cc Above 500cc	ICE Electric	Northern Central Southern

Report Scope:

In this report, the Vietnam Two Wheeler Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Vietnam Two Wheeler Market, By Vehicle Type:

• Scooter/Moped
• Motorcycle

• Vietnam Two Wheeler Market, By Engine Capacity:

• Up to 125cc
• 126cc- 250cc
• 251-500cc
• Above 500cc

• Vietnam Two Wheeler Market, By Propulsion:

• ICE
• Electric

• Vietnam Two Wheeler Market, By Region:

• Northern
• Central
• Southern