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Grab to invest $500mn in Vietnam to spur digital economy

Released at: 13:38, 28/08/2019

Grab to invest $500mn in Vietnam to spur digital economy

Photo: Grab Vietnam

Southeast Asia's leading O2O platform to tap into opportunities in fintech, new mobility solutions, and logistics and announced partnership with Sovico Group.

by Hong Nhung

Grab Holdings Inc. announced on August 28 it will invest $500 million in Vietnam over a period of five years to tap into opportunities in fintech, new mobility solutions, and logistics, in order to spur the development of the country’s digital economy and create millions of income-opportunities that will elevate the quality of life of all Vietnamese.

It also announced a comprehensive strategic partnership with the Sovico Group to collaborate on mobility and logistics solutions to resolve bottlenecks and improve first and last-mile delivery networks in Vietnam and Southeast Asia.

As part of the strategic partnership, Grab and Sovico will also jointly share, explore, and participate in corporate social responsibility and public-private partnership (PPP) projects. The shared vision reflects Sovico’s deep commitment to developing and deploying digital solutions and Grab’s #TechforGood vision to use technology as a force for good in improving Vietnamese people’s lives.

The partnership consolidates the leading positions of both Sovico and Grab. Sovico brings its expertise and capabilities in international and nationwide aviation network, finance, real estate, and hospitality, while Grab’s platform and technology significantly augment the Sovico’s existing digital services.

“As a leading super app in the region and in Vietnam, we aim to make substantial contributions to the national digitalization of the transport, delivery and payment industries,” said Mr. Russell Cohen, Head of Regional Operations of Grab. “Through the partnership with Sovico, a multi-sector conglomerate in Vietnam, we will take a major step towards completing our ecosystem, providing customers with better services and benefiting our partners with more innovative solutions.”

Grab will also align its growth areas with Vietnam’s “Socio-Economic Development Plan” and leverage PPPs to contribute to the government’s economic, social, and environmental targets by 2020 and beyond.

The $500 million in investment will be used to launch new services in Vietnam and expand Grab’s transport, food, and payments network in the country while looking for new opportunities in new mobility solutions, fintech, and the wider logistics industry. The investment is reflective of Grab’s commitment to create greater social and economic benefits for Vietnam through technology.

To solidify Grab’s long-term commitment to Vietnam and its people, Grab announced its “Tech For Good” development roadmap that will help lift local communities from poverty, build a highly-skilled Vietnamese workforce, and create an environmentally-sustainable future.

“Grab is one of the largest tech investors in Vietnam,” said Mr. Jerry Lim, Country Head of Grab Vietnam. “By the end of 2019, we will have invested more than $200 million into the country to better the livelihoods of users and partners of our ride-hailing, food delivery, logistics, and cashless payments services.”

“This investment of $500 million will accelerate our efforts to elevate the quality of life for millions of Vietnamese people beyond the end-users of our super app ecosystem. By aligning our business with the government’s socioeconomic development plan, we want to make a significant and meaningful contribution to Vietnam’s long-term socioeconomic growth and support the country’s Industry 4.0 ambitions.”

Grab will look to establish PPPs with central and city government authorities and contribute to national programs such as the Smart City project initiated by Ho Chi Minh City authorities. “Tech For Good” is a living plan that will be adapted according to the Vietnamese Government’s key national policy priorities as the “Socio-Economic Development Plan” evolves beyond 2020.

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