Taxi Huong Giang Orders 1,500 VinFast EVs in Green SM Partnership

Overview

Taxi Huong Giang, a Vietnamese taxi cooperative, has signed a strategic partnership with Green SM (a subsidiary of VinFast) to purchase 1,500 VinFast electric vehicles (EVs). The deal will transition the company’s entire fleet from internal combustion engine vehicles to pure EVs and support its expansion into Bac Ninh province. This marks one of the largest single orders for VinFast EVs from a taxi operator and underscores the growing shift toward green transportation in Vietnam.

Key Facts

• Taxi Huong Giang will purchase 1,500 VinFast electric vehicles under the strategic partnership with Green SM.
• The order will increase Taxi Huong Giang’s total fleet size to over 2,000 vehicles.
• Taxi Huong Giang becomes one of the top five partners of Green SM in Vietnam.
• Green SM will provide operational support, technology platform, and restructuring assistance to ensure efficient fleet management.
• The partnership includes a model allowing drivers to gradually own the vehicles they operate.
• Taxi Huong Giang began using VinFast EVs in 2024 in Bac Giang province and now plans to expand to Bac Ninh.
• Green SM currently partners with nearly 100 transport companies and 11 bus operators nationwide.

What Happened

On [date not specified in source], Taxi Huong Giang and Green SM announced a strategic cooperation agreement, with Taxi Huong Giang committing to purchase 1,500 VinFast electric vehicles. The deal will enable the taxi cooperative to replace its entire fleet of internal combustion engine vehicles with pure EVs, positioning it as a leader in green transportation in northern Vietnam.

According to the announcement, Green SM will act as a consultant and operational supporter, ensuring the large-scale fleet operates efficiently and stably. The partnership also introduces a “cooperation rights” model, allowing drivers to gradually acquire ownership of the vehicles they drive, aiming to increase driver engagement and autonomy. Ms. Nguyen Thi Thanh Thuy, Chairwoman and General Director of Taxi Huong Giang, stated that the investment in a pure EV fleet is a strategic move to enhance competitiveness and adapt to the green transition trend in the transport market.

Market Context

VinFast (ticker: VFS on Nasdaq) has been aggressively expanding its EV ecosystem in Vietnam, with Green SM serving as its dedicated ride-hailing and taxi service platform. This order adds to VinFast’s growing list of commercial fleet customers, which includes other taxi companies and bus operators. The Vietnamese taxi market is increasingly shifting toward EVs, driven by lower operating costs and government incentives for green vehicles. Taxi Huong Giang’s transition to a fully electric fleet signals that the economics of EV taxis are proving viable at scale, which could accelerate adoption among other transport operators.

Strategic Significance

For VinFast, this deal represents a significant volume commitment from a single customer, helping to scale production and reduce per-unit costs. It also strengthens the Green SM network, which is central to VinFast’s strategy of creating a closed-loop ecosystem from manufacturing to mobility services. For Taxi Huong Giang, the partnership provides access to VinFast’s technology platform and operational expertise, potentially improving fleet utilization and driver satisfaction. The driver-ownership model could reduce turnover and improve service quality, setting a precedent for other taxi cooperatives in Vietnam.

What to Watch

• Delivery timeline for the 1,500 vehicles and any subsequent orders from Taxi Huong Giang.
• Expansion of Green SM’s partner network, particularly in northern provinces.
• VinFast’s quarterly delivery numbers and the proportion of fleet sales versus retail.
• Any government policy updates on EV subsidies or charging infrastructure that could affect fleet adoption.
• Driver uptake of the vehicle ownership model and its impact on operational metrics.