VIETNAMESE conglomerate Vingroup on Tuesday kicked off its $1-billion investment in the Philippines with the launch of a new, all-electric taxi and transportation service by its ride-hailing firm Green and Smart Mobility Joint Stock Company (GSM).
The Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) said in a statement GSM has unveiled its operations in ceremonies in Quezon City as the first phase of the company’s investment, worth $500 million.
OSAPIEA said the amount will be spent on the acquisition of taxi units to be deployed locally, setting up of charging stations and garages, onboarding of driver-partners and establishment of offices.
Once fully operational, GSM’s investments will reach $1 billion and will create between 20,000 and 70,000 high quality jobs, including driver-partners nationwide, OSAPIEA said.
It did not indicate the timeline for full operations but said the additional $500 million will go to expansion and operation of additional fleet in the next three years.
The Department of Trade and Industry (DTI) first announced GSM’s plan to introduce electric vehicle mobility solutions in the Philippines in a January 2024 statement, citing the outcome of President Ferdinand Marcos Jr.’ visit to Vietnam that month.
Vinfast is an automotive company founded by Vingroup Corp. Chairman Pham Nhat Vuong, who also owns GSM, the DTI said.
OSAPIEA said GSM deployed 2,500 all-electric VinFast vehicles in Metro Manila roads on Tuesday.
GSM’s fleet will include the VinFast VF 5, a compact electric vehicle known for quiet, emission-free and smooth rides.
OSAPIEA said the model has a range of 326 kilometers, advanced driver-assist systems, and modern infotainment features, tailored for the dynamic urban centers of the Philippines.
The company will operate a hybrid model of taxi services combining manual hailing and app bookings, with drivers either employed full-time or partnering with GSM, it added.
OSAPIEA also said the introduction of VinFast electric taxis in the Philippines is expected to set new standards in safety, service quality, and environmental impact by reducing carbon emissions and providing commuters with a convenient, app-based booking system that ensures transparency and ease of use.
“This will be a game-changer for Philippine public transport. It promises not only to modernize our transport system, but more importantly to offer commuters a safer, more convenient and environment-friendly transport option,” said Secretary Frederick Go, who joined the ceremonial push-button power up.
