A Xanh SM taxi on a road in HCM City. (Photo: VNA)

With Vietnam’s rapidly growing urban population, the lack of public transport options, and increasing traffic congestion, the demand for private modes of transportation has gone up in recent years.

Consumers’ increasing preference toward availing private transportation for traveling purposes, owing to the rising need for convenience in personal mobility and the growing number of tourists in Vietnam, are major determinants for the growth of the ride-hailing market in the country, the report said.

The rise in travel and tourism and the emergence of a young and tech-savvy population have further fuelled the adoption of ride-hailing services.