Vietnam’s used car market is booming, expected to grow from ₫237 trillion (USD 10.3 billion) in 2024 to ₫911 trillion (USD 39.55 billion) by 2034. Urbanization, rising incomes, and high new car costs are driving this trend. Here’s a snapshot of the top 5 cities leading the demand:
- Hanoi: Rapid urban growth and rising middle-class incomes make it the fastest-growing market.
- Ho Chi Minh City: Largest market with 48% of nationwide used car transactions in 2023.
- Hai Phong: Industrial expansion and increasing incomes fuel demand.
- Da Nang: Tourism and regional connectivity boost vehicle purchases.
- Binh Duong: High incomes and industrial growth drive premium vehicle demand.
Quick Comparison
| City | Population | Average Income (₫/month) | Infrastructure | Popular Vehicles | Price Range (₫) |
|---|---|---|---|---|---|
| Hanoi | 8.4M | 7.2M | Well-developed | Sedans, Crossovers | 350–550M |
| Ho Chi Minh City | 9.3M | 7.8M | Highly developed | Sedans, SUVs, Hatchbacks | 400–600M |
| Hai Phong | 2.1M | 5.8M | Moderately developed | Compact Cars, SUVs | 300–450M |
| Da Nang | 1.2M | 6.1M | Developing rapidly | Hatchbacks, Sedans | 320–480M |
| Binh Duong | 2.4M | 8.29M | Industrial-focused | SUVs, Pick-ups, Sedans | 380–580M |
Why It Matters
High import taxes make used cars up to 40% cheaper than new ones, a key factor for buyers. With urban areas growing and public transport often insufficient, personal vehicles are becoming essential. Each city offers unique opportunities, shaped by its economy, population, and infrastructure.
Explore how these cities are shaping Vietnam’s dynamic used car market.
1. Hanoi
As the capital of Vietnam and its political hub, Hanoi has emerged as a key market for used cars. With a population of 8.5 million and a GDP per capita of 151.1 million VND (5,945 USD) in 2023 – 1.48 times higher than the national average – the city’s economic strength fuels a growing appetite for vehicles. These factors make Hanoi a hotspot for the used car industry.
Contributing 12.7% to Vietnam’s GDP and 23.4% to government revenue, Hanoi plays a pivotal role in the nation’s economy. Its retail and service sectors generate 44% of the Red River Delta’s revenue and 12.8% nationwide. This economic clout translates into higher purchasing power, including for automobiles.
Hanoi’s used car market is growing faster than anywhere else in Vietnam, thanks to urban sprawl and an expanding middle class. Between 2021 and 2023, used car dealerships in Hanoi surged by 65%, while online used car marketplace registrations jumped by 85%. Additionally, digital transactions for used cars rose by 92% during the same period.
The city’s strategic position as a transportation hub for air, rail, and road networks further supports vehicle ownership. However, public transit currently meets only 21.5% of demand, falling short of the government’s 2030 target of 45–50% . With nearly 200,000 new vehicle registrations annually and traffic congestion costing around $1.2 billion USD each year, many residents turn to personal vehicles as a practical solution.
In November 2023, Chợ Xe, a digital automotive marketplace, teamed up with VPBank to introduce a digital financing platform for used car purchases. This platform processed over 15,000 loan applications in just two months, achieving a 78% approval rate and cutting disbursement times from five days to just 48 hours.
Looking ahead, Hanoi’s population is projected to grow to at least 9.5 million by 2030 and 11.2 million by 2050. Coupled with rising incomes, limited public transport options, and the ongoing need for personal mobility, these trends solidify Hanoi’s position as one of Vietnam’s most promising markets for used vehicles.
2. Ho Chi Minh City
Ho Chi Minh City stands as a key player in Vietnam’s used car market, thanks to its massive population of 9 million and a well-established automotive network. In 2023, the city contributed to 48% of all used car transactions nationwide. Notably, the luxury and near-luxury segments saw a sharp 32% growth compared to the previous year.
The city hosts over 450 registered used car dealerships, making up 42% of Vietnam’s authorised dealers. Since 2021, financing options have expanded by 35%, creating a competitive and accessible environment for buyers. This dynamic market reflects how the city’s mobility challenges influence car-buying behaviors.
Public transportation in Ho Chi Minh City meets just 9–15% of mobility needs, while motorcycles dominate, accounting for around 80% of daily trips. Adding to the complexity, only 7.5% of the city’s land is allocated for transportation infrastructure, highlighting persistent challenges in urban planning.
Located in Southern Vietnam, the city benefits from its strategic position, a higher concentration of affluent residents, and advanced transportation networks. Additionally, digital platforms are playing a growing role in connecting buyers and sellers, catering to the tech-savvy urban population.
With Vietnam’s urban population surpassing 40%, the demand for personal vehicles in major hubs like Ho Chi Minh City is expected to grow even further.
3. Hai Phong
Hai Phong has emerged as an important hub for the used car market, thanks to its thriving industrial base and strategic location along the coast. With a population of roughly two million, the city is seeing a growing shift toward personal vehicle ownership, reflecting its rising economic status.
The city’s economic growth plays a big role in shaping automotive demand. In 2023, Hai Phong’s GDP climbed by 10%, placing it 5th nationwide and 2nd in the Red River Delta region. This economic surge has led to higher disposable incomes, with workers in industrial parks and economic zones earning an average of VND 11.5 million per month (about US$445). As incomes rise, so do transportation needs, including the demand for used cars.
Hai Phong’s industrial expansion is another factor driving this market. The city is home to 14 industrial parks and has plans for significant growth by 2025. Recent investments highlight this trend, such as the US$56 million invested in the DEEP C I Industrial Park by Sembcorp Integrated Hub Hai Phong IV in 2023. These developments create specific transportation needs, further boosting the appeal of used vehicles.
The city’s well-connected transportation infrastructure also plays a major role. With roadways, rail lines, waterways, and air and sea links, Hai Phong supports both industrial activity and the mobility needs of its residents. On top of that, financial institutions are expanding their services in this growing tier 2 city. Banks and consumer financing companies are making car ownership more accessible by offering better financing options, particularly for middle-income workers.
Environmental conditions in northern Vietnam, such as frequent flooding, also influence buying habits. Used cars are often preferred for their lower replacement costs in case of weather-related damage.
The combination of economic growth, industrial development, and practical transportation needs has solidified Hai Phong as a dynamic market for used cars.
4. Da Nang
Da Nang serves as a vital hub in central Vietnam, linking the sea, highlands, and neighboring countries. This strategic position drives diverse transportation needs, which, in turn, fuel the demand for used cars. Beyond its economic significance, the city thrives as a top destination for tourism.
Tourism plays a major role in boosting vehicle demand. In 2024, Da Nang welcomed over 10.9 million visitors, including approximately 4.1 million international tourists – a remarkable 36.3% increase compared to the previous year. This influx has created opportunities for businesses such as car rental services and tour operators, many of which benefit from the cost advantages of used vehicles.
Adding to its appeal, Air Premia launched four weekly flights between Da Nang and Incheon in January 2025, making the city even more accessible to international travelers. Projections estimate that 6,682,229 international passengers will pass through Da Nang International Airport in 2025, reflecting an 8% growth from 2024.
The city’s economic growth further supports the expanding market. Da Nang’s regional GDP grew by 8.6% in Q3 2024, with year-to-date GDP rising 6.47%. Investment in development also reached nearly US$1 billion, marking a 7.1% increase.
In 2024, Da Nang designated 700 hectares for a Free Trade Zone (FTZ), integrating logistics at Lien Chieu and converting Tien Sa Port into a tourist hub. Nguyen Van Quang, Secretary of the Danang Party Committee, described the FTZ initiative as:
"The FTZ pilot represents a bold and innovative approach in testing a global model in a Vietnamese context".
Da Nang’s port system, the largest in central Vietnam and the third-largest nationwide, is another key driver. Combined with ongoing high-tech and digital transformation efforts, the city continues to attract skilled workers, further increasing the demand for used cars. Additionally, new transport projects have enhanced connectivity, prompting platforms like Carpla to extend their services to Da Nang in December 2023, alongside Hanoi and Ho Chi Minh City.
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5. Binh Duong
Binh Duong has transformed from a quiet rural province into a bustling industrial powerhouse. Back in 1995, its urbanization rate was just 17.51%, but by 2019, that figure had skyrocketed to 79.86%. Today, the province is home to 12 industrial clusters and 29 industrial parks, with over 70% of these spaces already occupied. This rapid industrial growth has naturally driven up the need for personal transportation options, particularly affordable ones.
What sets Binh Duong apart is its impressive income levels. The province boasts the highest average income per capita in the Southeastern region, at ₫8.29 million per month. This strong purchasing power has made used cars an attractive choice for many residents, especially as their first vehicle.
Adding to this, Binh Duong’s location within Vietnam’s southern economic zone gives it a strategic edge. Being close to Ho Chi Minh City creates a dynamic economic corridor where efficient transportation is highly valued. Road transport plays a crucial role in Vietnam’s logistics, handling over 77.4% of goods and 94% of passenger volume.
Recent developments highlight how significant road transport is for the region. For example, in January 2024, Indo Trans Logistics Corporation expanded its fleet by adding 20 Euro 4 Isuzu trucks to its Road Transport Center in Binh Duong. Similarly, in December 2023, Carpla extended its services to Binh Duong, reflecting the growing demand for transportation solutions.
Urban growth in Binh Duong is also shifting, moving gradually from the southern areas toward the north. This shift has sparked new residential projects, which in turn are expected to increase the need for affordable and dependable transportation options.
City Comparison Data
A closer look at the key metrics across five major cities highlights the distinct trends shaping Vietnam’s used car market. This comparison sheds light on the unique dynamics influencing each region.
| City | Population | Average Monthly Income | Infrastructure Status | Typical Used Car Price Range | Popular Vehicle Types |
|---|---|---|---|---|---|
| Ho Chi Minh City | 9.3 million | ₫7.8 million | Highly developed | ₫400–600 million | Sedans, SUVs, Hatchbacks |
| Hanoi | 8.4 million | ₫7.2 million | Well developed | ₫350–550 million | Sedans, Crossovers |
| Hai Phong | 2.1 million | ₫5.8 million | Moderately developed | ₫300–450 million | Compact cars, SUVs |
| Da Nang | 1.2 million | ₫6.1 million | Developing rapidly | ₫320–480 million | Hatchbacks, Sedans |
| Binh Duong | 2.4 million | ₫8.29 million | Industrial focus | ₫380–580 million | SUVs, Pick-ups, Sedans |
Ho Chi Minh City leads the pack with its extensive dealership networks and a growing array of financing options, making it a hub for used car transactions. Meanwhile, Hanoi’s market is gaining traction, fueled by improvements in both digital and physical infrastructure, which are helping to streamline the buying process.
When it comes to pricing, cars in the ₫400–600 million range dominated transactions in 2018, with analysts predicting that vehicles priced under ₫500 million will remain a popular choice for first-time buyers.
Binh Duong stands out with the highest average income of ₫8.29 million per month, which has led to a growing demand for premium vehicles like SUVs and pick-up trucks. This aligns with the city’s industrial character and its residents’ preference for durable, versatile vehicles.
In northern areas, factors such as flood-related vehicle replacements have extended the average replacement cycle, boosting used car sales. Additionally, the wide range of models available – from compact A-class hatchbacks to larger D-class SUVs – combined with dense populations and strong automotive infrastructure, has contributed to the vibrant used car market in urban centers across Vietnam.
These comparisons highlight the diverse factors shaping Vietnam’s rapidly growing used car market, with each region contributing its own set of opportunities and challenges.
Conclusion
Vietnam’s used car market reflects a fascinating blend of regional diversity and economic growth. As highlighted earlier, Ho Chi Minh City and Hanoi dominate in transaction volume, but each of the top five cities brings its own unique factors that shape buyer preferences and market behavior.
With a market valuation of ₫161,344.7 billion, millions of Vietnamese families are finding affordable mobility solutions, marking a significant milestone for the nation’s expanding middle class.
Technology is playing a transformative role, as evidenced by a 30% year-on-year increase in online used car listings in 2023. This digital shift is breaking down geographical boundaries, making it easier for buyers and sellers to connect across regions.
Looking ahead, the market is projected to grow to USD 28.30 billion by 2030, signaling strong future potential. Regional trends also reveal intriguing dynamics: northern areas, frequently affected by flooding, see higher vehicle replacement rates, while southern industrial hubs like Binh Duong enjoy stronger purchasing power, driving demand for premium vehicles. These patterns emphasize the importance of leveraging local strengths and digital tools to stay competitive.
For businesses, understanding these regional differences is essential for crafting strategies that cater to diverse consumer needs. Meanwhile, buyers benefit from greater competition and a wider selection of vehicles as online platforms continue to expand.
The numbers speak volumes: vehicle ownership has surged by 160%, with cars per 1,000 people growing from 23 to 60 between 2018 and 2023. As Vietnam’s middle-income population is expected to grow from 13 million in 2020 to 25 million by 2026, these five leading cities will remain key players, setting benchmarks for other markets across the country.
Ultimately, the combined forces of demographic trends and digital advancements are propelling Vietnam’s used car market forward. The future of the industry lies in harnessing local strengths and embracing digital innovation.
FAQs
What is driving the growing demand for used cars in Vietnam’s major cities?
The demand for used cars is surging in Vietnam’s major cities, driven by several important trends. As urban areas expand and disposable incomes rise, owning a car is becoming a realistic option for more people. For many, used cars offer a more budget-friendly way to achieve personal mobility.
Another factor fueling this growth is the expanding middle class. With more people looking for dependable vehicles without overspending, the used car market perfectly fits their needs.
On top of that, the digital transformation of the market has made a big difference. Buyers can now browse, compare, and evaluate options online, making the entire process more convenient and transparent. When you combine these changes with the increasing need for personal transportation in bustling cities, it’s easy to see why Vietnam’s used car market is growing so quickly.
How does infrastructure development in Vietnam’s top cities impact the demand for used cars?
Infrastructure upgrades in Vietnam’s major cities are significantly boosting the demand for used cars. With improved roads, highways, and public transportation systems, commuting has become much more convenient, prompting more people to consider owning vehicles. The enhanced connectivity and accessibility also make used cars an attractive and budget-friendly choice for residents in both urban and suburban areas.
Moreover, Vietnam’s large-scale infrastructure projects, with investments ranging from 1,000 trillion to 1,500 trillion VND, are driving urbanization and economic expansion. This growth naturally increases the demand for personal vehicles, especially used cars, which provide an economical option for daily travel. Better infrastructure not only cuts travel time but also lowers operating costs, making car ownership a practical choice for a broader audience.
How do digital platforms and financing options make buying used cars easier in Vietnam?
Digital platforms in Vietnam like Cho Tot Xe, Bonbanh, and Oto.com.vn are transforming how people buy used cars. They provide easy-to-navigate online marketplaces, detailed vehicle history reports, and a wide variety of listings. These features bring a new level of transparency and convenience, helping buyers confidently find the car that suits their needs.
On top of that, the growing availability of financing options is making it easier for more people to own a used car. With the auto finance market expected to expand significantly, tailored loan options are becoming more accessible to consumers. Together, these digital tools and financing solutions are breaking down barriers and fueling the growth of Vietnam’s used car market.
