It was recently confirmed by ride-hailing firm, Grab that they were planning on invest $500 million in Vietnam. They are expected to do this, over the span of the next five years. They are doing this with the effort of expanding their services in other South-East Asian countries. According to numerous reports, the company is expected to expand its transport, food and payments network all throughout the country. An official spokesperson from Grab was able to, in a statement to the press, that they will be going ahead with the investment.
In a statement to the press, the head of Grab’s regional operations, Russell Cohen reportedly said that the latest investment goes on to reflect their re-doubled commitment to Vietnam. They personally believe that due to the country’s rapidly developing phase in different fields, including the economy and the emerging middle class population, ensures that it is ready for digital payments.
One of the first reports that was published online, in relation to this news, was by Reuters. In their report, they stated that there will be major investments seen in Vietnam this year. The President of the company, Ming Maa also provided a special interview in this regard. He said that the team at Grab is extremely excited at the provided opportunity. They expect to see similar characteristics that they have been able to realize during their investments in Indonesia.
As can be recalled, it was only last month that Grab had made their plans of investing nearly $2 billion in Indonesia, public. They had strategically made the selection of Indonesia, with the hopes of generating as many profits as possible in a region that is so populated. It is through this that they aim towards building the next-generation transport network. Their other objective is to ensure that their investments undergo transformation, with regards to their critical services in the Healthcare division.
The company made the decision of making the additional investment in Vietnam, as the company is hoping to become more competitive. They plan on doing this after their participation in Indonesia, especially with regards to Go-Jek and Vietnam Be, have found to be fruitful. Expert Economist Bui Quang Tin, in a statement, commented that the competition in the market, as far as the ride-hailing applications are concerned, is becoming increasingly fierce. The considerable amount of investment that has been made from the side of Frab, would ultimately also mean that they will be able to offer heavier discounts, even when it comes to considering short-term risks.