Vietnamese firm eyes PH ride-hailing market
A unit of Vingroup, one of the largest private conglomerates in Vietnam, has expressed interest in entering the Philippines’ ride-hailing market this year with a plan to provide eco-friendly taxi services that only utilize electric cars.
In a statement on Monday, the Board of Investments (BOI) said Green and Smart Mobility Joint Stock Company (GSM), a private company of Vingroup owner Pham Nhat Vuong, was “rapidly moving forward” with its plan to establish operations in the Philippines.
Vingroup is one of the companies that President Marcos met during his visit to Vietnam last January.
“The company’s planned project is aligned with the government’s direction in attracting sustainability-driven investments, particularly in our transition towards electric mobility,” the BOI said.
GSM is Vietnam’s first pure electric taxi company providing passenger transportation services entirely by VinFast electric vehicles. Vingroup said this generation of taxis was noiseless and emitted no carbon.
Should the plan of Vingroup materialize, GSM would be the latest player in the Philippines’ ride-hailing market dominated by Grab—which is also present in the food delivery and digital payment sectors.
The entry of Vingroup will come at a favorable time. According to Statista, a data provider, the local ride-hailing market is forecast to hit $710 million this year, while the number of users are projected to grow to 16.65 million by 2028.
At the same time, the Philippines’ vulnerability to climate change puts it at risk of losing 13.6 percent of its economic output by 2040 if not addressed, which could potentially push up the demand for eco-friendly services in the country.
GSM officially started operating the first pure electric taxi service in Vietnam, Green SM Taxi, in April 2023. According to Vingroup’s website, Green SM Taxi provides customers with two service options: GreenCar, a standard taxi service; and LuxuryCar, a premium taxi experience. INQ
