The Vietnamese franchisee, New City Rent A Car, will offer short-term and long-term car rentals with chauffeur options. It will have budget services for tourists and premium services for high-end customers.

Nim Vuon Phu, a representative of New City Rent A Car, said at an event Wednesday that the company will start offering services in Ho Chi Minh City soon and later this year in Hanoi.

It has 40 cars now and will raise this number to 1,000 by the end of next year, he added.

"We will focus on foreigners who come to Vietnam to travel or work. We are also looking for businesses with a demand for long-term car rentals for their staff."

Hertz, which operates three vehicle rental brands in approximately 10,200 locations worldwide, first entered Vietnam in mid-2012 with a franchise with local logistics partner Indo Trans Logistics Corp (ITL).

But the U.S. company later canceled the partnership as it said the business model was not in line with customers’ demand at that time.

Last December, the world’s largest car rental service provider, Enterprise Holdings, launched its Rent-A-Car service in Vietnam as its first destination in Asia.