Investment in the different potentially high growth Asian economies is now one of the pet strategies of some of the biggest tech companies in the world, and in that regard, Vietnam is an excellent choice. Over the years, Singapore based ride-hailing service Grab has grown into a behemoth, and it has also made strategic investments in countries in which it feels it should expand its businesses. In a new development, it has emerged that the company has now decided to invest $500 million in Vietnam. Grab wants to expand its service considerably in the country as it looks to become one of the bigger players in its industry.
Although Grab is best known for being a ride-hailing company, it has also expanded into food delivery as well as payments and wants to expand all those services in Vietnam through this investment. The company said in a statement that the investment is further proof of their commitment to growing in Vietnam. The head of the company’s regional operations, Russell Cohen spoke about the company’s commitment to Vietnam. He said,
This investment is a reflection of our redoubled commitment to Vietnam. The country’s rapidly developing economy and emerging middle-class population make it ripe for the adoption of digital services.
The news about the company’s decision to invest in Vietnam had been broken by a leading news agency earlier this week.
Grab has been making huge moves in South East Asia and it is clear that the company want to become the ultimate go-to app for ride-hailing, food delivery, and payments for millions of people in the region. In July, Grab had announced that it was going to invest as much as $2 billion in its operation in Indonesia and it is a highly strategic move considering the fact that the country is the most populous in South East Asia. In Indonesia, Grab is determined to not only build a high tech transport network but also work on ways to deliver services like healthcare smoothly. The President of the Ming Maa stated in an interview that the company is excited regarding its investments in Vietnam and also went on to state that there are a lot of similarities with Indonesia. Considering the fact that the company has committed $2 billion towards Indonesia, it is a ringing endorsement of its hopes about Vietnam.