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, 2020-2030F

Market Overview

Vietnam two wheeler market was valued at USD 9.21 Billion in 2024 and is expected to reach USD 14.78 Billion by 2030 with a CAGR of 8.2% during the forecast period. The nation’s dependence on two-wheelers stems from its densely populated cities, limited public transport, and cultural affinity for motorcycles as both economic and lifestyle tools. Urbanization, projected to reach 40% by 2030, further fuels this trend. With over 74 million motorcycles on the road by the end of 2023, Vietnam remains one of the world’s highest two-wheeler penetrated countries. Two-wheelers offer affordability, maneuverability, and suitability for short commutes, making them ideal for cities like Ho Chi Minh and Hanoi. A burgeoning middle class and rising disposable incomes are pushing consumers towards mid-range and premium vehicles, encouraging international brands to expand their presence. Electrification is another powerful trend, driven by government incentives, falling battery costs, and green consumer preferences. Domestic manufacturers like VinFast, Dat Bike, and PEGA are challenging legacy ICE players by launching efficient, connected electric models.

Additionally, the rise of the gig economy has created a thriving secondary market for commercial usage. Although electric two-wheelers are growing rapidly, challenges around charging infrastructure, policy unpredictability, and safety persist. Smart, connected features are becoming mainstream, appealing especially to younger demographics. Subscription models, sharing platforms, and fintech-driven vehicle ownership are shaping a more flexible and tech-savvy ecosystem. Localization initiatives and Vietnam’s push to become a regional EV hub further support sustainable market expansion. OEMs are investing in R&D, factory expansions, and dealership networks to capture diverse user segments. The market outlook is strong, with both traditional and electric segments set to grow in tandem over the next decade, positioning Vietnam as a vibrant two-wheeler innovation and consumption hub in Southeast Asia.

Key Market Drivers

Urbanization and Traffic Congestion

Vietnam's rapid urbanization has put immense pressure on city infrastructure. As per the General Statistics Office (GSO), nearly 37.3% of working-aged Vietnamese lived in urban areas in 2023, up from 34.4% in 2015. Cities like Hanoi and Ho Chi Minh City witness dense traffic, leading to an increasing demand for agile, space-efficient vehicles. Two-wheelers provide a cost-effective and practical alternative to cars, particularly for daily commuting and short-distance travel. The continued rise of ride-hailing and delivery services using motorcycles has also added to the demand. Two-wheelers provide a compact and fuel-efficient solution for navigating narrow streets and traffic snarls. With limited parking infrastructure, motorcycles remain the preferred commuting choice. Moreover, the rise in gig-based delivery services—such as Grab, Gojek, and Baemin—has boosted demand for two-wheelers as commercial tools. Daily riders benefit from reduced commute times and operating costs, reinforcing the two-wheeler’s central role in Vietnam’s mobility landscape.

Rising Disposable Incomes and Middle-Class Expansion

Vietnam’s GDP per capita reached approximately USD 4,300 in 2024, up from USD 2,740 in 2015, according to the World Bank. The expansion of the middle class has created a consumer base that is more inclined toward personal vehicle ownership. This economic upliftment supports the sale of higher-end scooters and motorcycles, particularly in urban and semi-urban regions. Moreover, increased consumer financing options and digital credit assessment tools have made two-wheeler purchasing more accessible to a broader population. Motorcycles and scooters are no longer just utilitarian—they are aspirational purchases. As consumers shift preferences toward more stylish, feature-rich, and technologically advanced models, brands like Yamaha, Honda, and Piaggio are launching upgraded portfolios. Flexible payment schemes and digital banking platforms are further reducing the entry barrier for first-time buyers.

Electrification and Eco-Conscious Mobility

Amid global climate concerns and rising air pollution in urban zones, Vietnam is increasingly embracing electric two-wheelers. The government’s National Energy Development Strategy aims to increase the share of electric vehicles in urban mobility by 2030. Domestic manufacturers like VinFast and Pega, along with foreign entrants such as Yadea and Honda, are expanding their electric vehicle portfolios. Battery prices fell nearly 14% in 2023, and local governments are investing in EV charging networks, making electric scooters more affordable and viable. These developments are not only reducing dependence on imported fuels but also positioning Vietnam as a potential EV manufacturing hub in Southeast Asia.

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Key Market Challenges

Inadequate Charging Infrastructure for EVs

Although electric two-wheelers are gaining traction, Vietnam’s charging infrastructure remains underdeveloped. Most users depend on home-charging solutions, which are not feasible for apartment dwellers or urban residents with shared housing. While companies like VinFast and Dat Bike are setting up public charging stations, the pace of development is slow. According to the Ministry of Transport, fewer than 1,000 public EV charging points existed nationwide in 2024. The lack of standardized battery swapping and charging protocols further hinders market penetration.

Regulatory Uncertainties and Licensing Norms

The two-wheeler market, especially the electric segment, is subject to shifting government policies. Inconsistencies in subsidies, import duties, and road usage norms affect manufacturer planning and consumer confidence. While there is growing support for electrification, policy clarity on long-term incentives, battery recycling regulations, and vehicle classification (especially for low-speed e-scooters) remains limited. In 2024, the sudden suspension of tax relief on imported EV parts disrupted supply chains and raised production costs.

Safety and Environmental Concerns

The proliferation of two-wheelers has led to increasing road safety concerns. In 2023, the National Traffic Safety Committee reported that over 70% of traffic accidents involved motorbikes. Additionally, conventional petrol-powered motorcycles contribute significantly to urban air pollution. Inadequate rider training, poor adherence to helmet regulations, and insufficient traffic law enforcement worsen the problem. These issues have prompted some municipalities to consider limiting two-wheeler use in central urban zones during peak hours.

Key Market Trends

Rise of Electric Two-Wheelers and Battery Innovation

Vietnam is witnessing a major shift toward electric mobility, with domestic production of e-scooters seeing growth. Manufacturers are investing in next-gen battery technologies such as solid-state and graphene-enhanced lithium-ion batteries. Companies like VinFast have begun integrating IoT-based battery management systems (BMS) to provide predictive analytics and remote diagnostics. Furthermore, government programs promoting lithium-ion recycling and second-life battery applications are creating a more sustainable ecosystem.

Integration of Smart Technologies and Connected Mobility

The modern Vietnamese consumer, especially younger buyers, demands more than basic transportation. Two-wheelers are increasingly integrated with digital dashboards, GPS, Bluetooth, and smartphone compatibility. Smart security features such as anti-theft GPS trackers, remote ignition lock, and voice-enabled diagnostics are becoming common. In 2024, over 25% of new scooter models offered by top brands like Honda, Yamaha, and VinFast included at least one IoT-based feature, signaling a clear push toward smart mobility.

Growth of Subscription-Based and Shared Mobility Models

Motorbike subscription services are gaining momentum in Vietnam’s urban centers. Startups like iMotorbike and Be have rolled out monthly rental plans that include insurance, maintenance, and delivery. These models are popular among gig workers and students. Moreover, shared mobility options using e-scooters are emerging in tech-savvy cities like Da Nang and Hanoi. The affordability and low entry barrier of these models are expected to contribute significantly to market expansion.

Segmental Insights

Propulsion Insights

In Vietnam, the two-wheeler market was dominated by internal combustion engine (ICE) vehicles. However, electric two-wheelers are emerging as the fastest-growing segment. The shift is primarily driven by supportive policies, lower total cost of ownership, and growing environmental awareness. Urban areas such as Hanoi and Ho Chi Minh City are witnessing significant uptake of e-scooters, particularly among students and delivery riders. Leading ICE brands like Honda and Yamaha are also venturing into hybrid and electric segments to stay relevant.

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Regional Insights

In Vietnam, the Southern region, led by Ho Chi Minh City in the market. The region benefits from high population density, better road infrastructure, and a booming service economy. It is also a stronghold for electric two-wheeler adoption due to higher income levels and environmental awareness. The Northern region, which includes Hanoi, holds the second-largest market share. It serves as a hub for government-backed initiatives and university students, who are key adopters of electric scooters. Hanoi’s relatively young population and robust public awareness campaigns are accelerating EV penetration.

Recent Developments

• In 2024, TAILG, a Chinese electric two-wheeler company, has begun production at its new manufacturing base in Vietnam, with an annual capacity of 350,000 units. This facility will serve as a hub for expanding TAILG's operations throughout Southeast Asia, focusing on long-range EVs. The company aims to capitalize on Vietnam's growing electric two-wheeler market, driven by policies promoting electrification. TAILG intends to collaborate with partners to promote long-range EVs and stimulate market growth in Vietnam. A three-year strategic plan was announced, and cooperation agreements were signed with initial strategic clients.
• In 2024, Yadea officially began construction of its second Vietnamese facility in Bắc Giang province. The USD 100 million plant, covering 23.2 ha and capable of producing 2 million units per year, is slated to start operations in 2025. It will also house an R&D center focused on smart e-scooter development tailored to Vietnamese and Southeast Asian preferences.
• In 2024, Honda Vietnam announced an aggressive road map to electrify its product lineup. Plans include launching over 10 electric motorcycle models by 2026 and scaling to 30 models by 2030. The company also introduced its first hybrid and electric bikes at the Vietnam Motor Show and partnered with Vietnam Post to deploy EVs for delivery services in Ho Chi Minh City
• In 2025, Honda Vietnam unveiled its ICON e: electric scooter, produced domestically in Vĩnh Phúc. Designed for students and commuters, it features a removable battery, LCD display, USB charger, and a 49 km/h top speed—meaning no driver’s license is required. Launching in April 2025, it marks Honda’s strategic entry into the local EV mobility segment

Key Market Players

• Honda Vietnam
• Yamaha Motor Vietnam
• SYM Vietnam
• Suzuki Vietnam
• Piaggio Vietnam
• VinFast
• Kymco Vietnam
• Pega Vietnam
• Ducati Vietnam
• Dat Bike

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:

o   Scooter/Moped

o   Motorcycle

• Vietnam Two Wheeler Market, By Engine Capacity:

o   Up to 125cc

o   126cc- 250cc

o   251-500cc

o   Above 500cc

• Vietnam Two Wheeler Market, By Propulsion:

o   ICE

o   Electric

• Vietnam Two Wheeler Market, By Region:

o   North Vietnam

o   South Vietnam

o   Central Vietnam

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Vietnam Two Wheeler market.

Available Customizations:

Vietnam Two Wheeler market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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