Automotive giant VinFast to lead the push for electric taxis in Vietnam

Electric cars of VinFast used to provide taxi services roll out of the factory. The use of electric vehicles is a trend towards sustainable transportation. - Vietnam News/ANN

HANOI, April 2 (Vietnam News/ANN): The participation of giants is leading the push for electric taxis in Vietnam which would reshape the taxi landscape towards more green transportation but the fares remain a decisive factor.

In early March, Pham Nhat Vuong, Vingroup Chairman, and owner of the Vietnamese electric vehicle maker VinFast, established Green and Smart Mobility Joint Stock Company (GSM) which is dedicated to using VinFast electric cars and scooters for rental and taxi services.

GSM, the world’s first multi-platform green transportation rental and taxi service with a charter capital of 3 trillion VND (US$127.85 million), of which Vuong owns 95%, plan to have 10,000 electric cars and 100,000 scooters.

The company said it would launch its taxi services using VinFast electric vehicles in April in Hanoi with plans to expand to at least five major cities within this year. It would also lease VinFast’s VF e34 and VF 8 electric cars to transport companies.

“Whether it is just a few dozen minutes in a taxi or a few weeks or months of renting, customers will have the opportunity to experience the smart features and convenience of electric vehicles. In this way, we can accelerate the smart electric vehicle revolution in Vietnam," said Nguyen Van Thanh, CEO of GSM.

According to the Vietnam Taxi Market report of advisory firm Mondor Intelligence, the Vietnam taxi market was valued at US$410 million in 2021 and is expected to reach US$790 million in 2027, registering a compound annual growth rate 10.25% during the period.

The domestic taxi market sees the participation of more than 200 players with ride-hailing services company Grab, taxi companies VinaTaxi, Vinasun Taxi and Mai Linh Group being market leaders, but none are using entirely electric vehicles to provide the services.

In March 2016, Mai Linh Group send a proposal to the Government for support policies to invest in electronic vehicles to gradually replace fuel-powered vehicles. However, the proposal have not seen any improvement until now when VinFast invests in producing electric vehicles coupled with the rapid development of battery-fueled vehicles.

In mid-June last year, Dong Thuy Limited Company which owns Lado Taxi uses VinFast e34 to provide taxi services in Lam Dong province. Delivery services company Ahamove last year launched AhaRide in Da Nang which uses electric scooters to transport passengers in cooperation with VinFast. The company plans to have 10,000 electric vehicles by 2025.

The reopening of economic activities after the Covid-19 pandemic, coupled with lowered fares and easier bookings via apps, would promote the taxi market, according to Mordor Intelligence. - Vietnam News/ANN

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Vietnam , Electric Taxis , VinFast


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