Grab to Invest $500m in Vietnam

Southeast Asia’s ride-hailing app Grab is slated to invest $500 million in the country of Vietnam. The firm’s decision reportedly stems from its desire to grow its reach in the nation within the next five years.

Grab is primarily known as a ride-hailing and ride-sharing app. However, over the past couple of years, the company has evolved into a business that offers more than just rides. Today, Tech Crunch reports that the firm has ventured into a food ordering sectors, making payments, providing insurance products and services, and many more.

Its expansion plans in Vietnam include covering all the bases, such as transportation, food, and payment systems state CNBC. Based on the company’s statement, “the country’s rapidly developing economy and emerging middle-class population make it ripe for the adoption of digital services,” says Grab head of regional operations Russell Cohen.

Besides these offerings, Southeast Asia’s ride-hailing firm is also launched its Tech for Good program that empowers local workforce while creating an “environmentally sustainable future.” Under this, local hires will work for the company, including individuals assigned to the research and development department (R&D) and other technological sectors.

To help fight unemployment, the ride-hailing giant plans to provide numerous work opportunities across 63 cities in the country, including drivers, delivery persons, and partner establishments.

In particular, ZD Net reveals that Grab’s expansion and investment in Vietnam align with the country’s Socio-Economic Development Plan. The said plan intends to shuttle in economic and social investments that will further the country’s growth and development come 2020.

According to Jerry Lim’s statement to ZD Net, Grab’s Vietnam country head, “aligning [their] business with the government’s socio-economic development plan, [they] 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.”

Vietnam is not Grab’s first venture in Southeast Asia. Previously, the company also invested a whopping $2 billion in Indonesia to help develop the local digital systems, notes ZD Net.