Grab to invest ‘several hundred million dollars’ in Vietnam
Singapore-based ride-hailing firm Grab is set to invest "several hundred million dollars" in Vietnam where the company sees its next major growth market, just after it unveiled a US$2 billion (S$2.8 billion) plan in Indonesia.
The proposed investment is the latest example of a top regional brand deepening its commitment in Vietnam, one of Asia's fastest growing economies. It also shows the eagerness of Grab, which has raised billions of dollars, to put its cash to work.
"We are very excited about Vietnam. We see very similar characteristics to Indonesia," Grab president Ming Maa said.
Grab and rival Indonesia-based Gojek are evolving from ride-hailing apps to become one-stop shops for services as varied as payments, food deliveries, logistics and hotel bookings in South-east 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.
Like in Indonesia, many middle-class and young consumers in Vietnam are using apps and websites to access services.
"I would expect us to invest over several hundred million dollars into growing our Vietnam business," Mr Maa said, without giving specific details.
Vietnam ranks third or fourth among Grab's top markets, he added.
Grab was Vietnam's most downloaded ride-sharing app from January to July, according to market data and analytics firm, App Annie.
The company, which has over 4.5 million drivers in the region, aims to double its revenue to US$2 billion this year. - REUTERS