- The Straits Times
Singapore-based Grab has announced it is is investing US$500 million (S$695 million) into Vietnam over a period of five years, just one month after committing US$2 billion to Indonesia.
In a statement on Wednesday (August 28), the Southeast Asian tech giant said its Vietnam investment will be focused on opportunities in fintech, new mobility solutions and logistics.
The US$500 million investment will be used to launch new services in Vietnam and expand Grab’s transport, food and payments network in the country. The company is also seeking new opportunities in new mobility solutions, fintech and the wider logistics industry, it said.
Grab entered Vietnam in 2014 as a ride-booking service, and now also runs a food delivery service there.
According to Grab, its GrabFood platform has seen gross merchandise value grow 400 per cent in six months, with average daily orders hitting 300,000 in the first half of the year.
Russell Cohen, Grab’s head of regional operations, said Vietnam’s young, mobile-first population makes it ripe for the adoption of digital services. “As we scale our food, parcel delivery, transport and payments business across the country, we hope to tap and invest in new opportunities emerging in the fintech, mobility and logistics space, in order to bring about greater value and innovation for our customers and partners,” he said.
Grab also announced plans to align its growth areas with Vietnam’s “Socio-Economic Development Plan” and leverage public-private partnerships through its new “Tech For Good” roadmap. The roadmap is aimed at contributing to the Vietnam government’s economic, social and environmental targets for 2020 and beyond.
According to Grab Vietnam’s country head, Jerry Lim, Grab will have invested more than US$200 million in the country by the end of 2019.
“By aligning our business with the government’s socio-economic development plan, we want to make a significant and meaningful contribution to Vietnam’s long-term socio-economic growth, and support the country’s Industry 4.0 ambitions,” Lim said.