Vietnam’s electric taxi operator Green and Smart Mobility (GSM), owned by VinFast founder Pham Nhat Vuong and his family, disclosed an aggressive overseas rollout. The company aims to deploy company‑owned fleets in the United States, Sweden and the Netherlands before the close of 2026, with additional European markets slated for 2027.
IPO timing and valuation expectations
GSM’s expansion is being pursued ahead of a planned initial public offering in Hong Kong in 2028. While the firm has not revealed a target valuation or fundraising goal, advisers have previously suggested a valuation near $20 billion. Preparations for the listing will begin this year, with the company reaching out to large investors, though details of those talks remain undisclosed.
Business model and growth strategy
The firm’s rapid rise in Vietnam stems from a capital‑intensive model that employs drivers and owns the vehicles, purchasing them from VinFast at discounted rates. This contrasts with lighter‑asset rivals such as Grab and Uber, which rely on independent drivers using their own cars. GSM’s turquoise taxis have become a common sight in Vietnamese cities, and the company plans to buy one million VinFast vehicles between 2026 and 2030.
Analyst Mehdi Jaouadi of YCP warned that the model is “high‑risk,” noting uncertainty about whether overseas markets can generate sufficient fleet utilization to offset the heavy capital outlay. He cautioned that continued funding of company‑owned fleets could increase reliance on external capital unless operating cash flow improves or the firm shifts more assets to driver partners.
Shift toward a hybrid model
In Vietnam, GSM is already moving toward a hybrid approach, combining company‑employed drivers with freelance operators to lower costs. Approximately 40 % of its domestic fleet remains company‑owned, with the remainder operating under a platform model. For its U.S. and EU launches, GSM will initially use only company‑owned vehicles and employed drivers, later transitioning to a mixed model that includes non‑employee drivers.
VinFast context
VinFast, Vietnam’s largest automaker, has been expanding its global footprint with assembly plants in India and Indonesia, though it recently suspended some Indian production plans. The automaker sold nearly 200,000 cars last year, with 11 % exported. VinFast’s parent, Vingroup, reported total liabilities of $42.8 billion as of June 2024.
GSM competes with regional ride‑hailing giants such as Singapore‑based Grab and Indonesia’s GoTo Gojek Tokopedia, and it recently launched a fleet in Denmark. The company declined to disclose its debt levels or identify its principal creditors.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
