Vietnam’s Xanh SM, an electric taxi and motorbike service founded by Pham Nhat Vuong, is gaining popularity as an environmentally friendly and homegrown alternative to the leading ride-hailing app, Grab. Xanh SM, backed by Vuong’s Vingroup conglomerate, has become a common sight on Vietnam’s streets with its mint-colored electric vehicles. The company’s strategy includes not only providing ride-hailing services but also renting out vehicles to drivers.
However, some analysts question Xanh SM’s growth potential and Vuong’s focus on pushing his Vinfast brand of EVs through the platform. While Xanh SM has expanded its operations in Vietnam and into neighboring Laos, Vinfast has faced losses and delays in factory openings despite efforts to sell vehicles to affiliated companies. With plans to expand regionally, Xanh SM faces challenges such as high costs associated with international operations.
Vuong’s commitment to Vinfast has raised concerns about the company’s financial sustainability, especially in a competitive EV market. Despite facing criticisms of high prices and poor reviews, Vinfast continues to receive support from Vuong, who remains determined to make the brand a success. Vingroup’s financial struggles, including selling off subsidiaries to raise capital, have also raised doubts about the company’s long-term viability.
Nevertheless, Vuong maintains his dedication to Vinfast, pledging substantial financial support to keep the brand afloat. With the challenges of the EV industry and intense competition, the future of Vinfast and Xanh SM remains uncertain. While some drivers have raised issues with Xanh SM’s electric scooters, others see the company’s potential for growth and success in the evolving market for electric mobility solutions.
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