Green transformation: From trend to survival strategy
Traditional transportation businesses are currently facing three major pressures: fuel costs, maintenance costs and environmental policies. Fuel currently accounts for 30-50% of total operating costs, while oil prices fluctuate continuously. Gasoline vehicles also require high maintenance costs, due to their complex structure with hundreds of wear-and-seat details. At the same time, regulations on emissions, inspection, and restrictions on old vehicles entering urban areas... are being strictly implemented from 2024.
In that context, electric vehicles are not only an alternative, but become a viable solution when helping businesses reduce fuel costs by up to 75%, almost no need for complicated maintenance, smooth operation, and zero emissions. In addition, electric vehicles also help businesses enhance their brand image, improve user experience and control operational efficiency with real-time data.
According to Mr. Nguyen Manh Linh, owner of a taxi company in Hanoi, electric vehicles are no longer a story of the future, but an urgent requirement for development. When balancing fuel costs, maintenance costs and customer satisfaction, I knew this was the right time to switch to express electric vehicles. Waiting for the policy to change is too late, said Mr. Linh.
From the perspective of brand strategy, marketing expert Nguyen Hai Quan commented that the business community in general and transportation units in particular will face the risk of falling behind, even being "thrown" out of the game if they do not transform green, because this is a real need from customers themselves.
"Environmental and social responsibility of businesses has now become one of the criteria for consumer service choice. Businesses that are slow to innovate following the general trend will eliminate themselves, he affirmed.
Xanh SM - "the pioneer" for the green transformation journey of the transportation industry
As the first unit to deploy a pure electric complex transportation model in Vietnam, Xanh SM - a brand of GSM Green and Smart Mobility Joint Stock Company, not only provides green vehicles but also creates a comprehensive ecosystem for electric transportation in Vietnam. From the direct operation team, the SM Platform Green for VinFast car owners to participate in the service, to the SM Partner Green model to support traditional taxi companies in converting, all of which aim at the common goal: developing the transportation industry in a green - smart - sustainable direction.
As of June 2025, Xanh SM has accompanied nearly 100 transportation businesses nationwide with a series of names such as G7 Taxi, Mai Linh, Lado, Golden Swallow... Of which, 19 units have completely restructured their business model, shifting to 100% technology and electric vehicle operation.
In particular, it is noteworthy that the recent strategic agreement signed on June 21, 2025 between Xanh SM, CK Vietnam Investment Joint Stock Company and V-Green helps expand the pure electric transportation model in Nghe An. The project deploys 300 VinFast electric buses, 1,000 commercial electric cars and 1,000 charging stations across the province, building a modern and synchronous green transportation model from public transport to delivery services.
Faced with this cooperation, the community of traders, drivers... in Nghe An was extremely excited. Ms. Nguyen Thi Hoa, a food trader at Vinh market, shared her joy at the news that there will be an electric bus running on the Nghe An - Ha Tinh route. "The air is now very polluted, if the vehicles are cleaner and more quiet, everyone will want to go. Hopefully the car will run soon so that we have more options when traveling," she said.
Meanwhile, Mr. Le Van Tung, a taxi driver in Vinh, said that there are currently many individuals in the transportation service business proactively switching to electric vehicles, thanks to advantages such as cost savings, smooth operation, no smell of gasoline, and being favored by many customers. Xanh SM also has many support policies for both partner businesses and individual drivers, making the green transition more favorable.
According to the first quarter report of 2025 by Mordor Intelligence, Xanh SM is currently leading the technology taxi market in Vietnam with 39.85% market share, just two years after its launch. Surpassing those figures is the innovation in the traffic face of many localities as well as the change in awareness and travel habits of Vietnamese users, towards a more sustainable direction.
