Number of private cars forecasts to triple by 2025 in HCMC and Hanoi

Due to the rise in the average per-head income of both the cities, which reaches between 3,000 USD and 10,000 USD, the number of private cars rapidly increases.

The car sales have seen a rise of 35% per year on average over the last 5 years, and are expected to triple by 2025 in Ho Chi Minh City and Hanoi. The two cities are facing two critical issues: a continuous hike in their populations, and their limited capacities to expand the road networks in the central cities. As a result, traffic congestions are foreseeable.

The increase in private cars also puts pressure on parking at workplaces. Although packing fees in central areas of Ho Chi Minh city and Hanoi are much higher than other cities, the existing parking spaces cannot satisfy a huge current parking demand, especially when the car parking business brings less profit than other business sectors such as office leasing, hotel or other services.

Savills holds that as it is more and more difficult for people to travel by their private transport means, public transport will more likely be a better choice in the future.

Currently, the rates of public transport users in HCMC and Hanoi are the lowest in the region, which also causes a high level of air pollution.

The two cities are in the first stage of urban rail development, for traffic issues are hardly solved in the short term.