Vietnam's Pham Nhat Vuong challenges Grab's dominance in ride-hailing
- Xanh SM was established to provide electric mobility solutions and has started operations in April 2023.
- Pham Nhat Vuong aims to expand Xanh SM into other countries by 2025, despite concerns over the long-term viability of the business.
- The company faces stiff competition in the electric vehicle industry, but analysts recognize the shift towards electric mobility among consumers.
In April 2023, Xanh SM started operations in Vietnam, aiming to provide eco-friendly ride-hailing services with electric vehicles. Pham Nhat Vuong, the founder of Vingroup, has ambitious plans to expand Xanh SM to three or four additional countries by 2025. Despite its growing presence on the streets, analysts raise concerns about the company's sustainability and the financial investment poured into the Vinfast brand of electric vehicles, which has reported significant losses. Consumers in Vietnam are increasingly inclined towards electric alternatives, highlighted by the growing popularity of Xanh SM among gig drivers over competitors like Grab. However, external expansion raises questions, given the lack of similar governmental support in foreign markets and the rising competition in the electric vehicle sector.