CAR RENTAL MARKET THRIVES

26/06/2019

"Exploding" car rental market

Vietnam car rental market may be much more exciting when a leading "giant" of the world - Enterprise Rent-A-Car (USA) has decided to invest in our country.

Enterprise Rent-A-Car has announced its operation in Vietnam through concessions to MP Executives, a unit of MP Logistics.

The challenge is not small

Enterprise Rent-A-Car can become a successful foreign "grandfather", but it may fail after a few years if there are competitors, because the middle-class experience is often difficult. measure.

Meanwhile, car prices in Vietnam are many times higher than other countries, which is the initial investment cost problem.

It will be difficult to succeed if Enterprise Rent-A-Car applies a higher price than other competitors to make up for the price, but if you use a uniform price, it is difficult to recover quickly.

Besides, many car manufacturers, especially Vingroup, have just launched many new models, with reasonable prices, which may reduce the demand for car rental.

In addition, if the US company does not fully grasp the market, it is very easy to fall into the car crash as foreign investors before. That is the risk of losing the car, the car is pledged, the car is sold, damaged ...

Market is more active

Many experts warn, if Vietnamese car rental companies do not change, they may be "short-lived" at home. Because foreign enterprises apply new technologies, even link with technology taxi firms, such as Grab ...

Meanwhile, online car rental service in Vietnam does not have a brand strong enough to compete with foreign competitors. That is not to mention car rental service in Vietnam is having problems not only in price but also in quality and service.

In order to compete with Enterprise Rent-A-Car, Vietnamese car rental service providers need to connect with each other, developing on the basis of new technology, increasing the quality of customer service.

However, Enterprise Rent-A-Car will make the Vietnam car rental market more active, especially in the segment of corporate customers, and high-level foreign employees have demand for long-term rental. , tour organizers ...

However, the entry of foreign businesses will create troubles on the legal front - which is an inherent weakness of the economy.

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