Overview
Green and Smart Mobility (GSM), the electric taxi operator affiliated with VinFast and owned by VinFast CEO Pham Nhat Vuong and his family, has revealed the geographic and timing contours of a major international expansion ahead of a planned initial public offering in Hong Kong in 2028. The company said it will deploy company-owned fleets in the United States, Sweden and the Netherlands by the end of this year, with further entry into additional European markets slated for 2027.
IPO plans and investor outreach
GSM confirmed that its listing venue will be Hong Kong and reiterated previously announced plans to begin IPO preparations this year, including initial outreach to potential large investors. The company declined to provide details on any investor discussions, and it would not disclose a target valuation or fundraising objective. Earlier communications from GSM indicated advisers had suggested a valuation in the region of $20 billion, a figure GSM has previously noted but did not confirm in the recent remarks.
International rollouts and relationship with VinFast
The expansion announcement underscores GSM’s international ambitions following its rapid uptake in Vietnam after launching in 2023. GSM uses only VinFast electric vehicles in its fleets and has been positioned as a channel that supports VinFast vehicle sales. The companies share senior representation; a spokesperson speaking on behalf of both GSM and VinFast provided the timing and scope of the growth plans.
GSM already operates across several Asian markets and competes with regional ride-hailing platforms such as Grab and Indonesia’s GoTo. The firm has recently added vehicles in Denmark and will now expand beyond Asia into Western markets. VinFast itself has opened vehicle assembly factories in India and Indonesia. The carmaker has separately suspended plans to assemble some electric vehicles in India, and it faces legal and operational challenges abroad, including a lawsuit in the U.S. related to delays in building a plant that had received public subsidies.
Scale and sales context
VinFast sold nearly 200,000 cars last year, about 11% of which were sold overseas, according to figures disclosed by the company. VinFast does not provide a market-based breakdown of its sales by geography. In 2023, VinFast sold 72% of its vehicles to related parties, primarily GSM, based on the company’s filings. A spokesperson representing both firms said GSM’s share of VinFast’s car sales has since fallen to roughly one quarter and is expected to remain above 20% in the coming years.
Business model and costs
A central element of GSM’s strategy is a capital-intensive approach: the company purchases vehicles, primarily from VinFast at discounted prices, and employs drivers who operate company-owned taxis. This differs from the asset-light models used by many ride-hailing competitors, which rely largely on independent drivers using their own vehicles. GSM’s model has produced a visible presence in Vietnamese cities, where the company’s turquoise-coloured taxis are common, and it has provided revenue support to an otherwise loss-making VinFast.
GSM has announced ambitious fleet acquisition plans, saying it intends to buy 1 million VinFast cars between 2026 and 2030. In Vietnam the operator is transitioning toward a hybrid approach that blends company-employed drivers and freelance drivers to reduce costs and scale the fleet. The company reports that around 40% of vehicles on its Vietnam platform are company-owned at present.
Governance, funding and risk
The aggressive expansion raises financing questions. An industry analyst, Mehdi Jaouadi, partner at Singapore-based consultancy YCP, characterized GSM’s growth strategy as "high-risk," and warned that it remains unclear "whether overseas markets can achieve sufficient fleet utilization to provide enough scale to balance the risk." He added that unless operating cash generation improves or GSM shifts more fleet capital expenditures to drivers and partners, continuing to fund company-owned fleets across multiple markets could heighten reliance on external capital.
GSM declined to disclose its outstanding debt or identify principal creditors. Separately, VinFast’s parent group, Vingroup, controlled by Pham Nhat Vuong, reported total liabilities, including debt and other financial obligations, of $42.8 billion as of June of this year in its latest financial statements. Vuong also controls several private companies that do not disclose their liabilities.
Operational approach in new markets
For initial operations in the U.S. and European Union, GSM plans to launch using only company-owned vehicles driven by employed staff. The company says it will later transition to a platform model that incorporates non-employee drivers, mirroring the hybrid shift it is pursuing domestically in Vietnam.
Competitive and strategic implications
The move to expand GSM’s company-owned fleet into developed markets comes at a time when VinFast continues to seek higher international sales for its electric vehicles following earlier, unsuccessful attempts to scale into Europe and the U.S. GSM’s fleet purchases and operations provide a direct channel for VinFast vehicles, but they also concentrate risk around a capital-heavy model that relies on sustained fleet utilization and access to capital to fund expansion.
What GSM declined to disclose
The company declined to elaborate on whether it is in active investor talks, would not state a fundraising target or overall valuation for the planned IPO, and declined to provide details on outstanding debt and main creditors.
Key points
- GSM plans fleet deployments in the U.S., Sweden and the Netherlands by year-end, with broader European expansion in 2027, and a Hong Kong IPO targeted for 2028.
- The operator runs a capital-intensive model that buys VinFast vehicles at discounts and employs drivers, differing from asset-light ride-hailing competitors; GSM intends to buy 1 million VinFast cars between 2026 and 2030.
- GSM and VinFast declined to disclose IPO valuation targets, fundraising goals or GSM’s debt profile; earlier adviser commentary suggested a possible valuation around $20 billion.
Risks and uncertainties
- Reliance on a company-owned fleet model increases capital requirements and could heighten dependence on external financing if operating cash generation does not improve - this affects the automotive and transport sectors.
- Uncertainty over whether overseas markets will deliver sufficient fleet utilization to offset the costs of company-owned fleets - this impacts ride-hailing, electric vehicle adoption, and fleet financing markets.
- Legal and operational challenges faced by VinFast, including a U.S. lawsuit over plant construction delays and suspended assembly plans in India, create potential headwinds for vehicle supply and international expansion efforts.