Electric cars of VinFast used to provide taxi services roll out of the factory. The use of electric vehicles is a trend towards sustainable transportation. (Photo: VNA) In early March, Pham Nhat Vuong, Vingroup Chairman, and owner ofthe Vietnamese electric vehicle maker VinFast, established Green and SmartMobility Joint Stock Company (GSM) which is dedicated to using VinFast electriccars and scooters for rental and taxi services.
GSM, the world’s first multi-platform green transportation rentaland taxi service with a charter capital of 3 trillion VND (127.85 million USD),of which Vuong owns 95%, plan to have 10,000 electric cars and 100,000scooters.
The company said it would launch its taxi services using VinFastelectric vehicles in April in Hanoi with plans to expand to at least five majorcities within this year. It would also lease VinFast’s VF e34 and VF 8 electriccars to transport companies.
“Whether it is just a few dozen minutes in a taxi or a few weeksor months of renting, customers will have the opportunity to experience thesmart features and convenience of electric vehicles. In this way, we canaccelerate the smart electric vehicle revolution in Vietnam," said NguyenVan Thanh, CEO of GSM.
According to the Vietnam Taxi Market report of advisory firmMondor Intelligence, the Vietnam taxi market was valued at 410 million USD in2021 and is expected to reach 790 million USD in 2027, registering a compoundannual growth rate 10.25% during the period.
The domestic taxi market sees the participation of more than 200players with ride-hailing services company Grab, taxi companies VinaTaxi,Vinasun Taxi and Mai Linh Group being market leaders, but none are usingentirely electric vehicles to provide the services.
In March 2016, Mai Linh Group send a proposal to the Governmentfor support policies to invest in electronic vehicles to gradually replacefuel-powered vehicles. However, the proposal have not seen any improvementuntil now when VinFast invests in producing electric vehicles coupled with therapid development of battery-fueled vehicles.
In mid-June last year, Dong Thuy Limited Company which owns LadoTaxi uses VinFast e34 to provide taxi services in Lam Dong province. Deliveryservices company Ahamove last year launched AhaRide in Da Nang which useselectric scooters to transport passengers in cooperation with VinFast. Thecompany plans to have 10,000 electric vehicles by 2025.
The reopening of economic activities after the COVID-19 pandemic,coupled with lowered fares and easier bookings via apps, would promote the taximarket, according to Mordor Intelligence.
Fares a questions
Using electric vehicles to provide taxi services is developingrapidly in many countries in the world.
China took the first steps to accelerate the shift to electrictaxis six years ago with increasing investment in charging infrastructure.
Norway, which has a high rate of electric vehicles, isstrengthening investment in infrastructure for electric taxis, including thegoal of turning Oslo into the first city to have a wireless charging system forelectric taxies.
Asia – Pacific is forecast to be the largest electric taxi marketin the world, driven by the huge demand in the world’s two most populousmarkets India and China.
“Increasing environmental concerns and favourable governmentinitiatives are some of the major factors driving the market's growth. Risingenergy costs and competition among emerging energy-efficient technologies arealso expected to fuel the market's growth,” Mondor Intelligence wrote in areport.
According to Nguyen Ngoc Dong, Director of Dong Thuy LimitedCompany, electric vehicles are a good choice in terms of costs, durability,good policy for battery, customer experience and smart management.
In the context of unstable fossil fuel prices, using electricvehicles was the most economical, Đồng said, adding that the Government’ssupport policies such as exceptions from registration fees also made it a goodchoice, he said.
Nguyen Cong Hung, Chairman of the Hanoi Taxi Association, saidthat the COVID-19 pandemic, fluctuating fossil fuel prices and environmentalissues coupled with the competition of ride-hailing services raised newrequirements for taxi companies to go green and implement tech in line with theglobal trend.
Sharing the same viewpoint, Ho Quoc Phi, the association’s deputychairman, said that electric cars were the future of the global automobileindustry, adding that the use of electric cars would help reduce the negativeimpacts on the environment compared to fuel-powered vehicles.
The trend of electric taxis was inevitable, but costs and faresshould be put into consideration to ensure the harmonisation of benefitsbetween taxi companies, drivers and passengers, he said.
Early implementation of electric taxis would help domestictransportation companies compete with foreign rivals and contribute toaccelerating the switch to sustainable transportation, Pham Chi Trung, a memberof the National Assembly Science and Technology Committee said, adding that apolicy framework should be developed to promote the production and use ofelectric vehicles./.
VNA
