GSM stepping on the throttle with Laos expansion plans

GSM, the company behind Vietnamese electric taxi brand Green SM, last week set its sights on Southeast Asian expansion, with a planned launch in Laos by the end of the year.

According to the plans revealed, GSM – which is controlled by Vingroup – aims to establish a fleet of 1,000 electric taxis in Laos, encompassing models like the VF5 and VFe34.

“The Laos market is the starting point for our international strategy. We will continue expanding into other countries,” remarked Nguyen Van Thanh, CEO of GSM.

The company intends to offer a range of services, such as personal car rentals and a business-to-business focus, including the sale of VinFast cars to corporate partners, mirroring its business model in Vietnam.

Besides Vietnam’s GSM, South Korea-backed Kakao Mobility also made inroads into the Laos market earlier this year by partnering with local firm LVMC Holdings, which operates in mobility sectors across Southeast Asia.

“Laos is Southeast Asia’s only landlocked country and its high potential as an overland trade hub makes it suitable as a base for competition in the Southeast Asian market,” said a Kakao Mobility representative.

Yet, while Kakao Mobility presents a challenge for GSM, both face a formidable contender Loca. As Laos’ premier ride-hailing platform established in 2018, Loca has already carved a significant niche for itself in the market. Both GSM and Kakao Mobility will need to strategise effectively to match Loca’s influence and reach.

As of last year, Loca boasted over 600 cars and 60,000 users, operating in all major cities of the country, with diverse services like motorbike hailing, express deliveries, grocery transportation, and insurance sales via its app.

Loca has claimed that its premier electric vehicle (EV) taxi service in Laos has marked a significant milestone.

“Significantly, we account for more than 12 per cent of EVs in the country, showcasing our pivotal role in steering the electric revolution forward, and proudly serve not just the local population but also visitors from around the world who come to Laos,” Loca said.

“With an ambitious plan in place, we aim to expand our network to 30 stations by the middle of 2024, ensuring comprehensive coverage across the entire nation and serving both our local and global customers.”

Laos has set its eyes 30 per cent of all vehicles on their roads being electric by 2023.

This ambition is backed by concrete plans, including the establishment of 200 public charging stations throughout the nation. Furthermore, within just the initial four months of this year, over 500 more EVs were imported. The wheels are already in motion for this electric revolution, as 17 charging stations are up and running.

“We recognise this electrifying potential and are eager to be at the forefront of this transformation,” said a representative from GSM.

Founded in April by Vietnam’s wealthiest man, Pham Nhat Vuong, who holds a 95 per cent stake, GSM has quickly risen to prominence in the Vietnamese market.

The company aspires to operate in 27 provinces in Vietnam by the end of 2023, boasting a fleet of 30,000 electric taxis and over 90,000 electric motorcycles.

Discussing international strategy earlier in May, Thanh of GSM said, “This year, GSM will be further present in Southeast Asia. We’re currently in discussions with potential partners in countries like Singapore, Malaysia, Laos, Cambodia, and the Philippines to explore collaborative service roll-outs.”

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