Vietnamese electric taxi service provider GSM and Japan’s leading integrated trading company, the Sumitomo Corporation, recently signed an MoU for the purpose of exploring collaborative opportunities in Vietnam’s mobility business.

With a population exceeding 100 million and GDP growth of approximately 6 per cent, Vietnam’s economy is on a robust growth trajectory. Its automotive market is expanding in lockstep, with approximately 5 million vehicles currently in use and new vehicle sales projected to grow by over 10 per cent annually. This growth is accompanied by diverse changes in sales and use patterns, fueled by rising demand from both individual and corporate customers. In line with Vietnam’s commitment to achieving net-zero emissions by 2050, the market is witnessing a surge in initiatives aimed at promoting carbon neutrality.

Through this collaboration with GSM, the Sumitomo Corporation aims to explore ways to foster carbon neutrality in Vietnam, leveraging GSM’s customer base and electric vehicle (EV) maintenance and charging infrastructure, along with expertise in the mobility business. Sumitomo will continue to collaborate with partners to develop businesses that respond to the evolving demands of the modern era, leveraging its experience and expertise to contribute to the automotive industry and society at large.

According to Mr. Thanh Nguyen, CEO of GSM and Deputy CEO of VinFast, GSM and Sumitomo will jointly explore opportunities and the feasibility of projects with shared vision and strengths in Vietnam, paving the way for deeper collaborative opportunities in the future.

Boasting a legacy of 105 years and a global presence in 65 countries and territories, Sumitomo is renowned as one of Japan’s largest and longest-standing conglomerates. The corporation is engaged in a broad range of automotive fields in Japan and overseas, from vehicle engineering and manufacturing to sales, after-sales services, and energy management. It also engages in activities such as car leasing, automotive financing, and EV ventures, and has established roots in Vietnam over more than three decades.

The corporation has set a goal of becoming carbon neutral across all of its business activities by 2050. Supporting the Asia Zero Emission Community (AZEC), launched by the Japanese Government and other Asian countries, the Sumitomo Corporation is actively engaged in promoting decarbonization and energy transition across Asia, including in Vietnam.

Established in 2023 and owned by Mr. Pham Nhat Vuong, Chairman and Founder of Vingroup, Vietnam’s largest business conglomerate, GSM is pioneering the EV taxi and rental business around Vietnam, promoting electric mobility and a low environmental impact lifestyles. This positions it as a key player in the transition towards EVs in the country’s automotive market.