Vietnam's taxi operator Vinasun forecasts 16% profit fall amid tough competition

Vietnam's major taxi operator Vinasun expects profit to decline further in 2026 even as it plans to modestly grow revenue and upgrade its fleet, highlighting the continued pressure from ride-hailing platforms and rising operating costs.

The Ho Chi Minh City-based taxi operator targets revenue of VND902.7 billion ($34.28 million) this year, up 2.3% from 2025, but forecasts net profit to fall more than 16% to VND32.68 billion ($12.41 million), according to documents prepared for its 2026 AGM.

The outlook reflects a challenging operating environment. Vinasun (HoSE: VNS) said volatile fuel prices have driven up transportation costs, while weak consumer demand and intensifying competition have weighed on passenger taxi services.

To adapt, Vinasun plans to add about 310 new vehicles in 2026, primarily hybrid models from Toyota, in a bid to improve service quality and reduce fuel expenses. At the same time, it will phase out around 150 older vehicles, particularly those operating under franchise arrangements, as part of efforts to optimize fleet efficiency.

The company said it will remain flexible in adjusting fleet size in line with market conditions, aiming to balance different business models and maximize asset utilization. It also plans to withhold dividends for 2026, prioritizing internal resources for reinvestment.

Vinasun’s financial performance has been on a downward trajectory in recent years. In 2025, revenue fell nearly 12% year-on-year to about VND883 billion ($33.53 million), while net profit dropped more than 53% to over VND39 billion ($14.81 million). Total assets stood at VND1.77 trillion ($68.32 million) as of end-2025, down 4.4% from a year earlier.

Once a dominant player in Vietnam’s taxi market, Vinasun has seen its position eroded by the rapid rise of ride-hailing platforms such as Grab, Be Group and Xanh SM, which is Southeast Asia’s first all-electric ride-hailing service provider and 95% owned by Vingroup’s billionaire chairman Pham Nhat Vuong.

According to a Q4/2025 report by Mordor Intelligence, Xanh SM accounted for 51.5% of Vietnam’s four-wheel ride-hailing segment by gross merchandise value (GMV), surpassing Grab at 42.64% and Be at 5.86%. The result marks the fifth consecutive quarter that Xanh SM has maintained the top position, after first overtaking Grab in late 2024.

The competitive pressure has reshaped Vinasun’s scale and operations. The company’s workforce has shrunk dramatically from more than 17,000 employees in 2016 to just over 1,400 by the end of 2025.

VNS shares closed at VND8,010 ($0.3) each on Friday.