Ride-hailing firm Grab is planning to invest "several hundred million dollars" in Viet Nam, which it sees as its next major growth market. — Photo vietnamfinance.vn
Ride-hailing firm Grab is planning to invest "several hundred million dollars" in Viet Nam in the belief it will be its next major growth market, according to sources of Reuters.
The Singapore-based firm in late July also said it would invest US$2 billion into Indonesia over five years.
The proposed investment into Viet Nam is the latest example of a top-notch regional brand deepening its commitment to one of Asia’s fastest growing economies. It also shows Grab is ready to put its billions of dollars raised from investors to work.
“We’re very excited about Viet Nam. We see very similar characteristics to Indonesia,” Grab President Ming Maa told Reuters.
Maa said the company is paying attention to the Vietnamese market. Like in Indonesia, many middle-class and young consumers in Viet Nam are using apps and websites to access services, Maa said.
He added that Grab plans to invest several hundred million dollars into growing its business in Viet Nam. However, he did not reveal specific details on the investment.
Grab and Indonesia-based rival Go-Jek are evolving from ride-hailing app operators into one-stop shops for services as varied as payments, food delivery, logistics and hotel bookings in Southeast Asia.
Grab, with its app on more than 160 million mobile devices across eight countries, has said its Indonesia investment aims to build a next-generation transport network and transform how critical services such as healthcare are delivered.
Viet Nam ranks third or fourth among Grab’s top markets, said Maa. In 2018, Grab partnered with Vietnamese fintech firm Moca to launch a digital wallet. The same year, Grab formed a joint venture with Credit Saison, a Japanese credit card company, to offer loans and credit analysis to consumers and micro-entrepreneurs across Southeast Asia.
The company, which has more than 4.5 million drivers in the region, aims to double its revenue to $2 billion this year. Grab was Viet Nam’s most downloaded ride-sharing app from January to July this year, according to market data and analytics firm App Annie. — VNS