VinFast (VFS)-Backed Taxi Firm GSM Plots a US and European Push ahead of its Hong Kong IPO

Green and Smart Mobility (GSM), a Vietnamese electric taxi operator associated with VinFast Auto Ltd., has announced plans to launch vehicles in the US, Sweden, and the Netherlands by the end of 2026. This aggressive expansion is scheduled before GSM's anticipated 2028 initial public offering (IPO) in Hong Kong, for which analysts have suggested a valuation of approximately $20 billion.

The taxi firm's primary source of vehicles is VinFast Auto Ltd., often procuring them at discounted rates directly from the manufacturer. This arrangement creates an internal demand for VinFast's vehicles, providing a steady sales channel separate from retail customers.

The growth of GSM's fleet will not only support VinFast's vehicle volumes but also provide investors with a strong volume story. Global EV deliveries have surged by 96% year-over-year, reaching 70,085 vehicles in the second quarter, and first-half deliveries increased by 78% to 128,662 vehicles. A successful expansion for GSM could validate VinFast's strategy of leveraging affiliated businesses to build demand while offering the broader group additional capital for future growth.

However, GSM's fleet model necessitates substantial capital to scale, as the company operates its own drivers and owns every vehicle in its fleet, unlike ride-hailing platforms such as Grab and Uber that rely more heavily on independent drivers and their own vehicles. This capital-intensive approach could pose challenges when expanding into high-cost markets like the US, Sweden, and the Netherlands.

VinFast's international expansion is also encountering execution difficulties, with the company having suspended EV assembly plans in India and facing a lawsuit over delays at a subsidized factory. These setbacks raise concerns about VinFast's capacity to execute large-scale projects in new markets, particularly as it simultaneously seeks to expand across multiple regions.