VinFast-Linked Taxi Firm GSM Targets US, Europe Expansion Ahead of 2028 Hong Kong IPO

Vietnamese electric taxi operator Green and Smart Mobility (GSM), a key corporate partner of automaker VinFast, has announced plans for a significant international expansion into the United States and Europe. The move is a precursor to the company's targeted initial public offering (IPO) in Hong Kong, which is slated for 2028, according to a company spokesperson.

Global Expansion Roadmap

GSM intends to deploy its electric vehicle fleets in the U.S., Sweden, and the Netherlands by the end of this year, a spokesperson told Reuters in a recent interview. The company aims to enter additional European markets in 2027.

These expansion initiatives are being executed ahead of the planned Hong Kong IPO in 2028. The company confirmed the listing venue and stated that preparations, including initial offers to potential large investors, would begin this year. While GSM declined to provide a target valuation, its advisers had previously suggested a figure of around $20 billion.

A Capital-Intensive Business Model

GSM's rapid growth since its 2023 launch in Vietnam has been fueled by a capital-intensive model that relies on company-owned vehicles and employed drivers. This strategy differs significantly from the asset-light models used by competitors like Uber and Grab, which primarily rely on freelance drivers using their own vehicles.

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The model has established a crucial, symbiotic relationship with VinFast, as both companies are controlled by Vietnamese billionaire Pham Nhat Vuong. In 2023, sales to related parties, primarily GSM, accounted for a staggering 72% of VinFast's total vehicle sales, according to the Nasdaq-listed automaker's filings. A spokesperson stated this share has since declined to about a quarter but is expected to remain above 20% in the coming years.

Market Risks and Analyst Perspective

Industry analysts view the company's aggressive, capital-heavy growth strategy as carrying significant risk. Mehdi Jaouadi, a partner at consultancy YCP, described the strategy as "high-risk," adding that its success depends on whether "overseas markets can achieve sufficient fleet utilization to provide enough scale to balance the risk."

To mitigate costs, GSM is shifting toward a hybrid model in Vietnam that incorporates freelance drivers. However, the initial rollout in the U.S. and EU will rely exclusively on company-owned fleets. The expansion comes as VinFast faces its own international challenges, including a lawsuit in the U.S. over construction delays at a publicly subsidized plant.