Vingroup chairman sets up $127 mln electric car rental, taxi firm

Chairman of Vietnam’s largest private conglomerate Vingroup Pham Nhat Vuong has set up a new company offering electric car and motorbike rental and taxi services.

GSM (Green-Smart-Mobility) Joint Stock Company is the first green and integrated transport service model deployed in the world to popularize an electrified mobility experience, thereby promoting a sustainable, green lifestyle in the community, according to a company statement released on Monday.

The firm has charter capital of VND3 trillion ($126.77 million), with Vuong holding a 95% stake. It offers electric vehicle rental services to transport companies, while operating its own electric taxi service.

As the first electric taxi brand in Vietnam, GSM will go into operation in Hanoi next month, before expanding nationwide coverage this year.

The company is expected to supply the market with 10,000 electric cars and 100,000 electric motorbikes made by VinFast, a subsidiary of Vingroup.

Nguyen Van Thanh, CEO of GSM, said the firm aims to further improve a green and smart mobility ecosystem in Vietnam and provide people with more options to use electric vehicles at a reasonable cost.

“GSM's goal is to popularize the habit of using electric vehicles among citizens, thus raising public awareness of the convenience, smartness and sustainability of green vehicles,” he noted, adding commuters can experience direct driving and enjoy smart technology features and convenience on board.

GSM will help bring VinFast electric vehicles to customers of all classes in a wide and flexible way, gradually creating the habit of using green, smart and environmentally friendly vehicles in daily life, the company said.

On February 14, Bloomberg reported that VinFast lost $1.3 billion in 2021 and close to $1.5 billion in the nine months through September 30, 2022, according to a filing with the U.S. Securities and Exchange Commission ahead of VinFast’s planned initial public offering. The December filing also said the company expects to continue to incur operating and net losses in the near term.

VinFast delivered its first 45 all-electric cars to U.S. customers at its nine showrooms across California on March 1, while more continue to reach buyers via the firm’s American stores or a home-delivery service.