Vietnam's GSM Expands Electric Taxi Fleet Across Southeast Asia to Challenge Grab and Gojek

Electric Taxis Bring a Vietnamese Challenger to Regional Streets

Vietnam's Green & Smart Mobility (GSM) is targeting 10,000 electric taxis on Indonesian roads by the end of 2025, while committing to invest $1 billion over three years in the Philippines. Backed by Vietnam's richest man, Pham Nhat Vuong, the company is expanding into markets where Grab and Gojek have long shaped how people book rides.

As of August 25, 2025, GSM has launched operations in Vietnam, Laos, Indonesia and the Philippines, with plans to enter India and other Asian markets. Its teal, or cyan, vehicles are all made by VinFast, the Vietnamese electric vehicle manufacturer also associated with Vuong's business interests.

GSM's expansion connects two ambitions: building a regional transport business and putting VinFast cars in front of millions of potential customers. Every taxi journey gives passengers a chance to experience an electric vehicle, making the fleet a moving showcase for the manufacturer as well as a competitor to established taxi and ride booking services.

The company has reported rapid progress at home, capturing up to 40% of Vietnam's ride booking market within its first year. Abroad, its plans range from a fleet intended to reach 1,000 vehicles in Laos to the possibility of 35,000 taxis in Indonesia. Those ambitions bring substantial spending needs, competition from established operators and the practical challenge of keeping electric cars charged and available for passengers.

Vuong's Investment Connects GSM and VinFast

Pham Nhat Vuong holds a 95% stake in GSM. The taxi business is a strategic extension of the wider interests surrounding Vingroup, Vietnam's largest conglomerate, and its electric vehicle manufacturing arm, VinFast.

Vuong sees GSM as both a commercial opportunity and a marketing vehicle for VinFast's effort to become a global electric vehicle brand. Thousands of taxis can introduce the cars to people who might otherwise have little experience with them, while their daily use showcases the reliability and appeal the manufacturer wants customers to associate with its vehicles.

Nguyen Van Thanh, GSM's global chief executive, describes the company's mission as a "Go Green Global" journey. The aim is to make traditional mobility cleaner, smarter and more socially responsible, with service quality central to attracting passengers.

GSM promises service meeting five stars, professional drivers and transparent pricing. Its approach combines competitive fares with a premium travel experience, supported by rigorous driver training in road safety and customer service. Vuong's financial resources help the company pursue aggressive pricing while expanding its fleet.

The connection with VinFast also gives GSM a consistent vehicle strategy. Rather than assembling a fleet from different manufacturers and fuel types, it uses electric vehicles exclusively. For VinFast, the resulting exposure offers a way to build brand recognition and consumer trust in countries where electric cars remain unfamiliar to many people.

Laos Opened the First Route Abroad

Laos became GSM's first international market when Xanh SM, its local brand, launched in Vientiane in late 2023. The initial fleet used VinFast VF 5 Plus electric cars, with a plan to expand to 1,000 vehicles.

The intended reach extends beyond the capital to Luang Prabang and Vang Vieng, both tourist destinations. That would place the service in different travel markets, serving journeys in the capital as well as visitors moving around other parts of the country.

GSM's entry was linked to a Lao government goal described as making 30% of vehicles electric by 2023, supported by government incentives and a growing public charging network. That stated target date preceded the company's subsequent regional expansion.

Laos already has competing mobility businesses, including local operator Loca and South Korea's Kakao Mobility. GSM is seeking a place through premium service, job creation and a wider electric mobility business that includes vehicle leases and package rentals. Those services extend its role beyond individual taxi trips.

Manila Launch Comes With a $1 Billion Plan

GSM officially introduced Green GSM in Metro Manila in June 2025 as the Philippines' first taxi service operating entirely with electric vehicles. It began with 500 VinFast Nerio Green cars and plans to expand to thousands of vehicles.

The company has set out an investment plan of $1 billion over three years. Senior Philippine officials attended the launch, and the Green GSM app reached the top of local download charts within days, giving the new operator early public visibility.

Green GSM operates in 10 of Metro Manila's 16 cities. Passengers can use its app to book rides, see transparent fares and track trips in real time. A promotional rewards programme, including Green Points for new users, is intended to encourage people to try the service.

Thanh, GSM's global chief executive, described the company's commitment to service and expansion in the Philippines:

continuous innovation, improving service quality, and expanding our electric vehicle network to help build a sustainable and environmentally friendly transportation ecosystem that best serves the people.

Early feedback from Filipino riders and drivers has highlighted quiet journeys, clean cabins and the absence of fuel expenses as attractions. GSM's partnership with local authorities also connects the rollout to efforts to modernise urban transport and reduce emissions.

Safety Technology Is Part of the Pitch

Green GSM's Philippine vehicles include the Secure to Safe system, known as S2S. It combines video monitoring assisted by artificial intelligence with encrypted data management, with the stated aim of improving passenger security.

In simple terms, the system brings together technology that helps monitor video and protection for the information being managed. GSM places these features alongside professional driving standards, fare transparency and trip tracking as reasons for passengers to choose its service.

The broader fleet strategy also includes advanced safety and monitoring equipment, while drivers receive training in both safe driving and customer service. GSM is therefore competing on the experience inside the car as well as the price displayed in the app.

The vehicles themselves are another part of that pitch. Electric operation offers passengers a quiet ride and removes fuel expenses for drivers, advantages mentioned in early Philippine feedback. For GSM, maintaining those benefits consistently as the fleet grows will require continued spending on vehicles, maintenance, charging and staff training.

Indonesia Puts GSM Against Established Operators

Indonesia, Southeast Asia's largest economy, presents GSM with both its biggest opportunity and some of its toughest competition. The company aims to put 10,000 cyan electric taxis on the country's streets by the end of 2025.

Its ambitions extend to a 6% market share by 2026 and potentially 12% by 2027 if the fleet reaches 35,000 vehicles. A fleet of that size would put the Indonesian operation on a similar scale to GSM's current business in Vietnam.

Grab, Gojek and Blue Bird Tbk are established competitors. Gojek belongs to GoTo Group, whose activities give GSM another large incumbent to contend with as it seeks passengers and builds its local presence.

Maybank Securities analysts estimate that GSM's arrival could reduce Grab's sales from services requested through its platform by 1% and GoTo's by 3% by 2027. These are projections tied to the company's expansion, while GSM's own fleet and market share figures remain targets.

Blue Bird's chief executive welcomed GSM's arrival as a "catalyst for innovation". GoTo's chief executive also acknowledged the newcomer's competitiveness. Grab has not commented publicly on the new competition.

GSM still operates on a much smaller scale than Grab and Gojek, which collectively have millions of vehicles across Southeast Asia. Its Indonesian push is substantial, but it is unlikely to threaten the incumbents' survival in the near term.

GoTo's withdrawal from other countries, including Thailand and Vietnam, illustrates the difficulty of sustaining expansion across national borders in this industry. GSM's regional ambitions will depend on making each local operation work, even where the same vehicles and brand can be used across markets.

One Expansion Strategy, Different Local Markets

GSM's approach is consistent across countries: deploy VinFast electric vehicles, offer competitive prices and provide a premium service experience. Its rollout has nevertheless moved through markets with different competitors, transport needs and operating conditions.

The main milestones and targets show how quickly the company is trying to build its regional presence:

• Late 2023: Xanh SM launched in Vientiane, making Laos GSM's first international market, with plans to expand its fleet to 1,000 vehicles.
• June 2025: Green GSM launched in Metro Manila with 500 VinFast Nerio Green vehicles and an investment plan of $1 billion over three years.
• By August 25, 2025: GSM had launched operations in Vietnam, Laos, Indonesia and the Philippines, with India and other Asian markets planned.
• End of 2025: GSM aims to have 10,000 electric taxis operating in Indonesia.
• 2026: The company targets a 6% share of the Indonesian market.
• 2027: Its Indonesian ambition could reach a 12% market share if its fleet grows to 35,000 vehicles.

Laos offers a connection to government support for electric vehicles and travel beyond the capital. Metro Manila provides a large urban setting where the company is pairing a substantial investment pledge with technology and promotional rewards. Indonesia brings the prospect of much greater scale, alongside strong established rivals.

India and other Asian countries are part of GSM's plans, but no entry dates have been given. For the operations already launched, the immediate task is to turn fleet commitments and early interest into dependable everyday transport.

Fleet Growth Brings Costs Beyond Buying Cars

GSM operates in an industry with thin profit margins, high operating costs and intense competition. A large electric taxi fleet requires substantial capital, covering the cars themselves as well as charging infrastructure, maintenance and driver training.

Charging is a central operating requirement because electric taxis need access to power to keep serving passengers. GSM's expansion therefore depends on more than delivering vehicles to a new city. It also needs the supporting infrastructure and organisation to keep them working reliably.

Regulatory uncertainty and fragmented transport policies can slow that process. Traditional taxi operators and local unions may resist new entrants, particularly those introducing different technology or business models. GSM must also manage the practical differences between Manila's congested streets and Indonesia's sprawling cities.

Passengers present another challenge. Many consumers in Southeast Asia are sensitive to price and already use established booking platforms. Interest in sustainable transport gives GSM an opening, but maintaining demand will require competitive fares, consistent service quality and continued efforts to retain customers.

Early results in Vietnam and the Philippines suggest demand for clean, safe and modern transport. GSM's next test is sustaining that interest while paying for the infrastructure and service standards its expansion requires.

What the Expansion Changes for Electric Mobility

GSM's regional growth puts electric cars into everyday passenger service at a time when Southeast Asian governments are setting goals for electric vehicle adoption. Concerns about air pollution, energy security and climate change are driving those policies.

In Laos, the company's arrival supports the stated ambition to electrify 30% of vehicles. In the Philippines, cooperation with local authorities links its taxi service to transport modernisation and emissions reduction. In Indonesia, its arrival is prompting established operators to innovate and invest in their own green mobility services.

Passengers gain another choice of operator, while VinFast gains exposure through vehicles people can experience during ordinary journeys. GSM's fleet also presents the cars in demanding daily use, showcasing the reliability, comfort and cost effectiveness it wants customers to recognise.

Competitors may respond through both resistance and imitation. GSM's progress shows how a company originating in Southeast Asia can seek a regional role in electric transport, while its investment needs show why leadership, partnerships and a willingness to spend for future growth matter to the strategy.

The immediate contest remains practical: whether GSM can provide reliable cars, available charging, professional drivers and fares passengers will accept across several countries. Its expansion brings the taxi business and VinFast's brand ambitions together, making the performance of each local fleet important to both.

Key Points

• GSM is 95% owned by Pham Nhat Vuong and operates exclusively with VinFast electric vehicles.
• The company has launched in Vietnam, Laos, Indonesia and the Philippines, with India and other Asian markets planned.
• Green GSM began in Metro Manila in June 2025 with 500 cars and a plan to invest $1 billion over three years.
• GSM targets 10,000 taxis in Indonesia by the end of 2025 and a 6% market share in 2026.
• Its Indonesian ambition could reach 35,000 vehicles and a 12% market share by 2027.
• Charging investment, operating costs, regulation and competition will shape its ability to sustain expansion.