Taxi firm GSM accounts for 70% of Vingroup’s manufacturing revenues

By Minh Son   February 1, 2024 | 09:45 pm PT
Taxi firm GSM accounts for 70% of Vingroup’s manufacturing revenues
A taxi operated by GSM in Hanoi. Photo courtesy of GSM
GSM, the taxi firm owned by Pham Nhat Vuong, chairman of conglomerate Vingroup, accounted for VND20 trillion ($819 million) worth of Vingroup’s revenues last year.

It accounted for 70% of Vingroup’s revenues from manufacturing, which are mostly from sales of electric cars by subsidiary VinFast.

Vuong, Vietnam’s richest man, owns a majority stake in GSM, which he established in March last year, and is also the chairman of Vingroup.

VinFast delivered 34,855 vehicles last year, bringing the total since starting off in 2021 to 42,291.

The company told the U.S. Securities and Exchange Commission last year that GSM was its biggest car buyer and had purchased 7,100 cars by the end of the second quarter.

GSM has a deal to buy 30,000 cars and also 200,000 electric motorbikes from VinFast.

But Vingroup’s manufacturing business posted losses of over VND33 trillion last year.

VinFast operates mainly in Vietnam, North America (U.S. and Canada) and Europe (France, Netherlands and Germany), but has also announced plans to expand to Indonesia, Malaysia, India, and the Middle East.

The company makes seven car models ranging from minis to SUVs and nine motorbikes.

It also manufactures electric buses and bicycles and charging stations.

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