Key facts
- Vietnamese electric taxi operator GSM plans to expand into the U.S. and Europe.
- GSM is a partner of VinFast, the country's largest carmaker.
- The company targets a Hong Kong IPO in 2028.
- GSM plans to deploy fleets in the U.S., Sweden, and the Netherlands by the end of 2024.
- GSM intends to buy 1 million VinFast cars between 2026 and 2030.
- VinFast sold 72% of its vehicles to related parties, primarily GSM, in 2023.
Vietnamese electric taxi operator Green and Smart Mobility (GSM), a partner of VinFast, plans to expand into the U.S. and Europe ahead of a targeted 2028 initial public offering in Hong Kong. The company aims to deploy fleets in the U.S., Sweden, and the Netherlands by the end of this year, with further expansion into additional European markets planned for 2027.
GSM, owned by VinFast CEO Pham Nhat Vuong and his family, is seeking to increase its international presence after rapidly gaining market share in Vietnam since its 2023 launch. This expansion aligns with VinFast's efforts to boost international sales of its electric vehicles, which are exclusively used by GSM.
The company's growth strategy relies on a capital-intensive model where it owns the vehicles and employs drivers, contrasting with competitors like Grab and Uber. GSM intends to purchase 1 million VinFast cars between 2026 and 2030. In 2023, VinFast sold 72% of its vehicles to related parties, primarily GSM, though GSM's share has since fallen to about a quarter.
Analysts describe GSM's growth strategy as "high-risk," noting the need for sufficient fleet utilization in overseas markets to balance risks. The company is shifting towards a hybrid model in Vietnam, combining employed and freelance drivers to lower costs. For its U.S. and EU ventures, GSM will initially use company-owned vehicles and employed drivers before incorporating a platform model with non-employees.
VinFast has faced challenges, including suspended plans for an Indian assembly plant and a lawsuit in the U.S. regarding plant construction delays. Vingroup, VinFast's parent company, reported total liabilities of $42.8 billion as of June.