The Future of Transportation: Embracing the Electric Revolution

Some companies are even willing to forfeit deposits and pay penalties to switch from gasoline-powered cars, notably those of Japanese brands, to electric vehicles.

At a gathering between VinFast – GSM and over 50 passenger transport businesses in Vietnam on September 30, Mr. Ho Chuong, CEO of Son Nam International Transport Company, shared a recent story. His company had signed a contract to purchase gasoline-powered vehicles from Toyota but later decided to cancel the order, forfeiting their deposit, to transition to VinFast electric cars.

This decision was not easy at the time, but Mr. Chuong calculated that a Toyota Vios operating in the city incurs a cost of up to 1,750 VND/km. In contrast, the average cost for a VinFast electric car is only about 600 VND/km. This means that electric vehicles save up to 60% in energy costs compared to gasoline-powered cars.

Mr. Ho Chuong, CEO of Son Nam International Transport Company, shared his willingness to forfeit the deposit on gasoline cars to switch to electric vehicles.

According to the owner of MaiLove Taxi, in addition to cost savings, the transition to electric vehicles aligns with the government’s direction to promote green and clean public transportation. This makes it a sustainable and long-term strategy.

Mr. Chuong’s opinion received support from dozens of transport companies present at the event.

Mr. Nguyen Ngoc Dong, CEO of Dong Thuy Company (which operates Lado Taxi), is one of the entrepreneurs who deeply understands the changes after transitioning from gasoline to VinFast electric cars. He recalled the challenging year of 2022, when Lado struggled to find its footing after the pandemic. Mr. Dong placed his trust in electric vehicles to keep the brand afloat and retain its workforce, starting with a fleet of VF e34 cars.

Things gradually improved and even flourished. Lado, associated with a fleet of electric taxis, gained popularity among locals and tourists alike, who increasingly sought out their quality electric vehicles. “People arriving at Lien Khuong Airport specifically looked for our electric taxis,” Mr. Dong reminisced.

Lado’s revenue increased, and so did the drivers’ income. “The daily revenue of each VF e34 is no less than 1.8 million VND. When drivers meet, they no longer ask about revenue but proudly show their earnings,” said the leader of Lado Taxi.

Mr. Nguyen Ngoc Dong, representing Lado Taxi, expressed his satisfaction with VinFast’s incredibly good after-sales service.

In addition to the electric cars’ quality and cost-effectiveness, Mr. Dong was impressed by the after-sales service. He shared that he had purchased thousands of gasoline-powered cars from various brands but had never experienced such “incredibly good” after-sales service as provided by VinFast and GSM.

Mr. Dong mentioned that Lado Taxi has already converted over 800 vehicles to electric and committed to transitioning to 100% electric taxis by the end of the year, with a projected fleet of 1,100 electric vehicles.

He encouraged other transport companies to make the green transition as well. “I jokingly tell other businesses to go ahead and make the switch, and if they lose money, I’ll cover it because I’m that confident in the cost-saving capabilities of VinFast electric cars,” he said.

Mr. Tran Ba Thang expressed his desire for companies to unite in the green transition for the country’s development.

Mr. Tran Ba Thang, Chairman and CEO of Nam Thang Company, agreed with this sentiment. His company already has a fleet of 800 electric vehicles operating in 4-5 provinces and cities, and they plan to expand this number to 999 by the end of the year. Mr. Thang also voiced his hope for a united green transition among businesses, believing that it will not only provide stable jobs for many but also contribute to the local green foundation and generate revenue for the country’s development.

Mr. Nguyen Van Thanh, CEO of GSM Global, expressed his pride in witnessing Vietnamese passenger transport companies unite and collaborate in embracing green transportation.

Mr. Nguyen Van Thanh, CEO of GSM Global, shared his pride in the unity among passenger transport companies in the shift towards green transportation.

Mr. Thanh summarized the three phases of Vietnam’s transport industry. The first phase involved the entry of foreign companies like Grab and Uber into the market. The second phase was a challenging period when the entire industry faced the pandemic. The third and current phase is the “green revolution.”

During the first two phases, domestic transport companies struggled to adapt and change due to the involvement of foreign businesses. However, the current phase is significantly different, as VinFast, GSM, and other companies are pioneering a united front, forming a larger and broader alliance. It’s not just one company standing up but dozens or even hundreds of them.

So far, Mr. Thanh estimates that about 10 transport companies have completely switched to electric vehicles this year. He hopes that by 2025, this number will increase to 40-50 companies, helping to spread green transportation across Vietnam’s provinces and cities.

Mr. Pham Nhat Vuong, Chairman of Vingroup, emphasized his desire to accompany and partner with businesses for mutual growth and shared benefits.

Listening to the transport companies’ insights during the gathering, Mr. Pham Nhat Vuong, Chairman of Vingroup, expressed his desire to accompany and partner with these businesses for mutual growth and shared benefits.

Mr. Vuong highlighted two main goals: First, to build a greener, cleaner, and safer future for our children, ensuring a better living environment for future generations. Second, to establish a Vietnamese brand with international prestige. “VinFast may be the first, but from this inspiration, we will have dozens or even hundreds of other brands. That will also be a source of pride and a future for our children,” said the Chairman of Vingroup.

TH (Tuoitrethudo)