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Hertz says will launch one-way car rental service after Vietnam entry

Friday, August 30, 2019, 10:15 GMT+7
Hertz says will launch one-way car rental service after Vietnam entry
A Hertz sign is seen outside a rental car office in Ferndale, Michigan in this file photo from May 9, 2011. Photo: Reuters

American car rental company The Hertz Corporation launched its Vietnam business on Wednesday with plans to offer the Southeast Asian country’s first one-way car rental service.

Hertz will operate in Vietnam under a franchising agreement with local partner New City Rent A Car, said Hertz Asia Pacific vice-president Eoin Macneill.

New City Rent A Car will also manage Hertz’s other car rental brands including Dollar and Thrifty in Vietnam, Macneill said.

Vietnam has a booming tourism market and a fast-growing economy, with more than 700,000 corporates in operation as of the end of 2018, the Hertz vice-president said.

The country is forecast to welcome around 20 million international tourists in 2020, he added.

This makes Vietnam a promising market for car rental services targeting corporates and tourists visiting the Southeast Asian country, Macneill said.

The company looks to cater to all customer sectors with a range of both regular and luxury cars that adhere to American standards, Hertz said in a statement.

The Hertz service is available only in Hanoi and Ho Chi Minh City at the moment, but the company has announced plans to expand its business to other popular tourist destinations including Nha Trang, Hoi An and Phu Quoc.

Macneill said the company is expected to be the first to launch one-way car rental service in Vietnam, where customers will be able to pick up their rental car at one airport and return it at another.

Hertz has kept its rent prices undisclosed.

The Hertz Corporation, based in Estero, Florida, operates nearly 10,200 corporate and franchisee locations internationally.

It is the second U.S. car rental company to enter Vietnam, following the launch of Enterprise Rent-A-Car in November 2018.

Macneill admits Hertz’s major challenge entering the nation is to shift locals’ habits from using popular ride-hailing services, such as Grab, to renting cars.

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