VinFast-linked GSM eyes international IPO; floats US$20 billion valuation

[SINGAPORE/HANOI] Vietnamese electric-vehicle (EV) taxi operator Green and Smart Mobility (GSM), an affiliate of the Vingroup conglomerate, plans to pursue an international listing with its advisors suggesting a valuation of around US$20 billion, Vingroup said late on Monday (Dec 29).

The announcement followed a report by Reuters citing two sources familiar with the matter who said that GSM is targeting a debut in Hong Kong by 2027, potentially marking the first initial public offering (IPO) in the city by a Vietnamese company.

Founded in 2023 by Vingroup and VinFast head Pham Nhat Vuong, GSM runs Vietnam’s largest all-electric taxi fleet under the Xanh SM brand, using vehicles exclusively supplied by Nasdaq-listed VinFast.

“There have been advisory views suggesting a valuation of around US$20 billion,” Vingroup, which handles communications for GSM and VinFast, said.

“However, we continue to consult a range of perspectives. Any eventual valuation would depend significantly on the timing and market conditions at the time of listing,” the company added.

If GSM achieves such a valuation, the two-year-old ride-hailing company would rival its closest competitor, Nasdaq-listed South-east Asian Grab, which has a market capitalisation of approximately US$21 billion, according to LSEG data. Grab operates across sectors including mobility, food delivery and digital financial services.

While Vingroup did not give a location or a concrete timeline for GSM’s listing, it confirmed a listing would not occur in 2026.

The two sources had indicated the valuation could range between US$2 billion to US$3 billion, with one suggesting GSM was looking to raise at least US$200 million and that the valuation would factor in debt. Both sources requested anonymity due to the confidentiality of the information. The IPO plan, which is still tentative and could be shelved, would mark Vingroup’s second overseas listing after electric-vehicle maker VinFast’s Nasdaq IPO in 2023.

The collaboration between GSM and VinFast has supported VinFast’s domestic sales while enabling GSM to scale up without relying on third-party suppliers. VinFast’s sales to GSM accounted for 26 per cent of its total by the third quarter of 2025, down from 72 per cent in 2023.

While Vuong has previously expressed his intention to pursue an overseas listing for GSM, this is the first time indications about a potential destination, size, valuation and timeline have been detailed.

One of the sources said a Hong Kong listing would offer deeper liquidity and stronger investor appetite for EV and mobility plays versus Singapore, or Nasdaq where VinFast has faced liquidity challenges tied to a small free float.

A successful Hong Kong listing would fund GSM’s regional growth, strengthen its position in South-east Asia’s competitive market, and ease financial pressures on Vingroup and Vuong as VinFast continues its costly expansion and development efforts.

International expansion

Hong Kong has dominated Asian equity capital markets with about US$75 billion raised so far this year, more than triple last year’s tally and the highest since 2021, according to LSEG data. It has also been stepping up efforts to attract overseas issuers, with HKEX CEO Bonnie Chan saying in June that the exchange is seeking to woo South-east Asia and Middle East firms in particular for second listings.

With a listing, GSM would follow ride-hailing majors such as Uber, Lyft, Grab and Indonesia’s GoTo.

GSM held about 40 per cent of Vietnam’s ride-hailing market in the first quarter of this year, versus Grab’s 32 per cent, data from Indian research firm Mordor Intelligence showed. A separate survey by Rakuten Insight, however, estimated Grab’s share at 55 per cent, and GSM at 35 per cent.

Vingroup did not share financial details of GSM but said the company continued to demonstrate strong momentum and reinforce its market-leading position.

GSM has expanded into Laos, Indonesia and the Philippines, and is exploring an entry into India. REUTERS