Vietnam Smart Public Transportation Market Size, Share, Trends and Forecast by Technology, Mode of Transport, Deployment Model, and Region, 2026-2034

Vietnam Smart Public Transportation Market Summary:

The Vietnam smart public transportation market size reached USD 140.77 Million in 2025. The market is projected to reach USD 331.23 Million by 2034, growing at a CAGR of 9.97% during 2026-2034. The market is driven by robust government policy support and infrastructure investments, particularly through public-private partnership (PPP) reforms and nationwide intelligent transportation system deployment initiatives. Additionally, the integration of advanced digital payment and contactless fare collection systems across metro and bus networks is fueling the Vietnam smart public transportation market share.

Vietnam Smart Public Transportation Market Outlook (2026-2034):

The Vietnam smart public transportation market outlook remains highly favorable, driven by ambitious national infrastructure development plans and substantial government investment commitments in urban railway networks and expressway intelligent systems. The Vietnamese government's strategic emphasis on EV adoption, coupled with favorable policy frameworks for PPPs and technological innovations in traffic management systems, positions the market for sustained growth. The expanding integration of advanced tools for predictive maintenance, traffic optimization, and automated fare collection systems is further enhancing operational efficiency.

Impact of AI:

AI is emerging as a transformative force in the Vietnam smart public transportation ecosystem, enabling intelligent traffic management systems that optimize real-time traffic flow and reduce congestion in major urban centers. Government initiatives are actively promoting AI integration across transportation infrastructure. Transportation authorities are deploying AI-driven predictive analytics for route optimization, demand forecasting, and preventive maintenance of public transport fleets, while automated fare collection systems incorporate machine learning (ML) algorithms to detect anomalies and enhance security.

Market Dynamics:

Key Market Trends & Growth Drivers:

Government Policy Support and Infrastructure Investment Acceleration

Government policy support and accelerated infrastructure investments are key forces propelling the Vietnam smart public transportation market, as the government is prioritizing the modernization of urban mobility to reduce congestion, pollution, and dependence on private vehicles. Strategic initiatives under national transport masterplans are encouraging the adoption of smart buses, integrated ticketing, real-time passenger information systems, and intelligent traffic management solutions. Public funding and PPP-based investments are directed towards metro expansion, bus rapid transit (BRT) corridors, and digital mobility infrastructure, creating a strong foundation for smart transport ecosystems. Policies aimed at promoting digital transformation, smart city development, and sustainable mobility incentivize technology adoption by operators and municipalities. As per the IMARC Group, the Vietnam smart cities market size reached USD 7.1 Billion in 2024. Additionally, government-led pilot projects in major cities like Hanoi and Ho Chi Minh City validate use cases, attract private sector innovations, and support scaling of solutions, such as automated fare collection, thereby accelerating the Vietnam smart public transportation market growth.

Increasing EV and Green Transportation Adoption

The growing focus on EVs and green transportation is positively influencing the market in Vietnam, as the government and urban authorities are focusing on cleaner, more sustainable mobility systems. As stated by the Vietnam Automobile Manufacturers Association (VAMA), VinFast, the leading national EV brand, sold 67,569 EVs in the first half of 2024, representing approximately 30% of the entire automobile market share. The shift towards e-buses, electric minibuses, and low-emission transit fleets aligns with national goals of reducing air pollution, carbon emissions, and fuel dependency. This transition naturally requires smart technologies, such as fleet telematics, battery and charging management systems, route optimization, and real-time monitoring, to ensure efficient EV operations. Public transport operators are increasingly integrating digital platforms for charging infrastructure planning, maintenance scheduling, and energy consumption analytics. Green mobility initiatives also attract international investments and technology partnerships, accelerating the adoption of intelligent solutions across transport networks. As Vietnam is expanding EV-based public transport pilots in major cities, the integration of smart, connected, and eco-friendly transit systems is strengthening the market.

Digital Payment Integration and Contactless Fare Collection Advancement

Vietnam's smart public transportation infrastructure is undergoing a comprehensive digital transformation through the implementation of advanced contactless payment systems and integrated fare collection platforms that significantly enhance passenger convenience and operational efficiency. In September 2024, FPT IS partnered with Mastercard to deploy an open-loop EMV electronic payment system and citizen ID card-based payment application for Metro Line 1 (Ben Thanh – Suoi Tien) managed by Ho Chi Minh City Urban Railway Company No. 1 (HURC1), enabling passengers to utilize bank cards from domestic and international networks, alongside e-wallets for seamless fare payment. The shift from cash-based systems to e-wallets, smart cards, and mobile ticketing enables faster boarding, reduces fare evasion, and minimizes manual handling costs. These systems support multimodal integration, allowing passengers to employ a single digital payment method across buses, metros, and shared mobility services, improving the overall travel experience. For operators and city authorities, digital fare platforms generate real-time ridership and revenue data, enabling more accurate demand forecasting and operational planning.

Key Market Challenges:

Legacy Infrastructure and Fragmented Urban Transit Systems

Vietnam’s existing public transport infrastructure is still evolving and lacks the level of standardization required for a seamless smart mobility ecosystem. Many buses, stations, and ticketing systems operate independently with limited integration between modes, such as buses, metro, e-buses, and ride-sharing networks. Urban transit infrastructure in major cities like Hanoi and Ho Chi Minh City is facing congestion, limited dedicated lanes, and uneven digital connectivity, restricting real-time coordination. Rural-urban disparities are further widening the digital readiness gap. Implementing smart solutions on top of non-standardized, aging infrastructure increases complexity and cost. Fragmentation across regional transit authorities and operators makes system interoperability difficult. Without unified planning, integrated command centers, and cross-agency data sharing, Vietnam will struggle to achieve a fully connected smart transportation ecosystem.

Data Security, Privacy Concerns, and Regulatory Gaps

Smart mobility ecosystems rely heavily on passenger data, transit analytics, and integrated digital platforms. Vietnam’s regulatory frameworks for data privacy, cybersecurity, and cross-platform data sharing are still maturing. Public concerns about misuse of personal data, surveillance, or data leaks may affect trust in digital transport services. Operators must invest in secure data governance, encryption, and privacy-compliant systems, increasing overall project costs. Lack of standardized rules for interoperability, vendor accountability, and data-sharing between public and private mobility services also slows ecosystem integration. Additionally, cybersecurity vulnerabilities may expose transportation systems to hacking or operational disruptions. Without strong data regulations, transparent policies, and secure platforms, both investors and commuters may remain cautious, slowing widespread deployment of smart public transportation solutions in the country.

Low Adoption Readiness Among Commuters and Behavioral Resistance

While digital mobility solutions offer efficiency, many commuters in Vietnam continue to rely on cash, informal transport, and private vehicles, slowing the adoption of smart public transport. Limited awareness about smart features, such as digital ticketing, real-time travel apps, or multimodal route planning, reduces user motivation to shift from familiar, traditional travel habits. Older populations and rural users often face difficulties adapting to technology-based commuting, creating a digital divide. Perceived complexity of mobile ticketing or app-based services discourages first-time users. Trust issues regarding digital payments, data safety, and system reliability also affect user acceptance. Without strong customer education, incentives, and user-friendly platforms, people may not feel compelled to switch to smart public transit options. Behavioral resistance undermines utilization rates of new systems, reducing fare revenue and slowing operators’ willingness to broaden digital services. This mindset shift remains a critical challenge for the market growth.

Vietnam Smart Public Transportation Market Report Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the Vietnam smart public transportation market, along with forecasts at the country and regional levels for 2026-2034. The market has been categorized based on technology, mode of transport, and deployment model.

Analysis by Technology:

• Fare Collection Systems
• Intelligent Fleet Management
• Traffic Management and Priority
• Passenger Experience and Information
• Data Analytics and Cloud Platforms

The report has provided a detailed breakup and analysis of the market based on the technology. This includes fare collection systems, intelligent fleet management, traffic management and priority, passenger experience and information, and data analytics and cloud platforms.

Analysis by Mode of Transport:

• Smart Buses
• Urban Rail Systems
• Smart Ferries and Waterway Transport
• Ride-hailing and Micro-mobility

A detailed breakup and analysis of the market based on the mode of transport have also been provided in the report. This includes smart buses, urban rail systems, smart ferries and waterway transport, and ride-hailing and micro-mobility.

Analysis by Deployment Model:

• Government-led Projects
• Public-Private Partnerships (PPPs)
• Private Sector Initiatives

The report has provided a detailed breakup and analysis of the market based on the deployment model. This includes government-led projects, public-private partnerships (PPPs), and private sector initiatives.

Analysis by Region:

• Northern Vietnam
• Central Vietnam
• Southern Vietnam

The report has also provided a comprehensive analysis of all the major regional markets, which include Northern Vietnam, Central Vietnam, and Southern Vietnam.

Competitive Landscape:

The Vietnam smart public transportation market exhibits a dynamic competitive landscape, characterized by significant government involvement through state-owned enterprises and urban railway management authorities, alongside substantial private sector participation from domestic conglomerates and international technology providers. Competition centers on securing large-scale infrastructure contracts for metro system development, intelligent transportation system deployment, and EV fleet supply agreements. Key differentiators include technological capabilities in fare collection automation, fleet management systems, traffic optimization platforms, and integrated mobility solutions, with companies leveraging partnerships between Vietnamese operators and global technology firms to deliver comprehensive smart transportation ecosystems. The market is demonstrating increasing emphasis on vertical integration strategies where major players control multiple value chain segments, ranging from vehicle manufacturing to digital payment platforms, enabling end-to-end service delivery and enhanced competitive positioning through ecosystem control and operational synergies.

Vietnam Smart Public Transportation Industry Latest Developments:

• July 2025: Hanoi was set to introduce a unified smart transit card system, enabling passengers to utilize one ticket for different public transport options. This represented a significant advancement in enhancing commuting efficiency, convenience, and promoting public transportation use in light of rising congestion and pollution in Vietnam.

Vietnam Smart Public Transportation Market Report Coverage:

Key Questions Answered in This Report:

• How has the Vietnam smart public transportation market performed so far and how will it perform in the coming years?
• What is the breakup of the Vietnam smart public transportation market on the basis of technology?
• What is the breakup of the Vietnam smart public transportation market on the basis of mode of transport?
• What is the breakup of the Vietnam smart public transportation market on the basis of deployment model?
• What is the breakup of the Vietnam smart public transportation market on the basis of region?
• What are the various stages in the value chain of the Vietnam smart public transportation market?
• What are the key driving factors and challenges in the Vietnam smart public transportation market?
• What is the structure of the Vietnam smart public transportation market and who are the key players?
• What is the degree of competition in the Vietnam smart public transportation market?

Key Benefits for Stakeholders:

• IMARC's industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the Vietnam smart public transportation market from 2020-2034.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the Vietnam smart public transportation market.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the Vietnam smart public transportation industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.