The Green Way: 820 Million Miles of Green, 100 Thousand Tons of CO2 Reduced and Beyond

A Wake-Up Call from Mother Nature

On March 6, 2023, Vingroup Chairman Pham Nhat Vuong announced the establishment of Green and Smart Mobility (GSM), a company offering green transportation rental services and a multi-platform electric vehicle booking service under the brand Xanh SM.

The birth of Xanh SM also marks a step towards answering the global call for clean transportation and, more broadly, a green economy.

Looking back at 2023, the El Nino phenomenon returned with increasingly severe climate change. Faced with these challenges, green economy has become an inevitable trend for countries to achieve economic growth while maintaining environmental sustainability.

Many countries have synchronously developed infrastructure and implemented policies to encourage and promote the use of electric vehicles to reduce emissions and environmental pollution.

In Vietnam, the transition to green energy and emission reduction in the transport sector is imperative. Hanoi and Ho Chi Minh City, the two largest cities, have repeatedly ranked among the most air-polluted cities in the world, particularly due to high traffic density and smoke from gasoline-powered vehicles. According to the Ministry of Natural Resources and Environment, the transport sector in Vietnam consumes a large amount of energy and is a significant source of greenhouse gas emissions, expected to reach nearly 90 million tons by 2030.

Xanh SM – An Answer to Clean Transportation and the Green Economy

The Xanh SM fleet provides a green, clean, and environmentally friendly transportation solution, while enhancing the quality of public transport services – towards a more sustainable future. The solution also brings positive social benefits by providing jobs for thousands of drivers and related industries.

With the goal of promoting a strong green transition and towards the government’s NetZero commitment, Xanh SM contributes to reducing CO₂ emissions and noise pollution through the initiative of using 100% VinFast electric vehicles – a zero-emission, odorless, and noiseless mode of transportation that is healthy, user-friendly, and environmentally friendly.

Xanh SM also implements the initiative of applying technology in operations by developing a mobile application for quick booking, trip tracking, and online payment. Additionally, the driver’s app integrates features for vehicle monitoring and tracking, optimizing routes, and efficiently managing the fleet.

Technology is also seamlessly integrated through a cashless operation model, offering digital payment methods such as credit cards, e-wallets, etc., enhancing transparency and efficiency in payment and cost management.

The project has a high level of social responsibility, not only creating jobs for thousands of drivers but also offering attractive income and welfare policies to attract 2,000 female drivers in the last quarter of 2024 – early 2025. Diverse policies include: three paid days off per month for childcare; one paid day off per month for “women’s days”; regular health check-ups; income-boosting policies; and a monthly subsidy of 500,000 VND for female drivers from other provinces.

On its journey, Xanh SM sets out to pioneer, lead, and inspire in the field of electric vehicles, becoming the leading electric taxi brand in Vietnam and Southeast Asia, associated with dedication, technology, civility, and reliability. In addition to directly providing services in 45 provinces and cities in Vietnam, the Xanh fleet also welcomes businesses to join its network through the Xanh SM Platform, bringing the total number of provinces with electric taxis and motorcycles to 55.

Beyond taxi services, Xanh SM’s long-term vision expands to other green transportation and energy solutions, encouraging individuals and businesses to adopt environmentally friendly choices. Xanh SM also aims to develop supporting infrastructure and an electric vehicle ecosystem, including a nationwide network of charging stations and maintenance services, to lay the foundation for the growth of green transportation.

A Journey of 820 Million Green Kilometers, 100,000 Tons of CO2 Reduction, and More

Xanh SM underwent a lengthy preparation process: starting with in-depth market research and close collaboration with VinFast to develop optimized electric vehicle lines; implementing infrastructure and charging networks with the support of V-Green; piloting in Hanoi and Ho Chi Minh City, and refining operational processes. After this preparation period, Xanh SM was officially launched and continues to develop and improve its services.

Looking back on this journey, with 80,000 vehicles on the road, Xanh SM has achieved 820 million kilometers of green travel, resulting in a reduction of 100,000 tons of CO₂, equivalent to the carbon absorption of 4.7 million trees in a year.

Xanh SM has also contributed 1,000 VND from each completed taxi trip and 100 VND from each bike trip to Vingroup’s “For a Green Future” fund to support environmental initiatives.

According to various assessments, Xanh SM has been well-received by the most demanding customer segments. With a growing preference for green and environmentally friendly products, people are willing to pay a premium for such offerings. Additionally, green marketing and communication campaigns have positively impacted consumer social responsibility, and Xanh SM, as a pioneer in this field, is well-positioned to ride this wave of consumer sentiment.

Furthermore, Xanh SM has trained a team of drivers to become green ambassadors, transforming the face of transportation and bringing green and civilized services to customers.

Looking to the future, the Xanh SM model has significant potential for replication, not only within Vietnam but also in the region and internationally. The Xanh SM electric vehicle booking model aligns perfectly with the global trend towards a green transition, especially in large urban areas with high mobility needs and air pollution challenges.

The Xanh SM model can be adapted and expanded flexibly to suit local conditions. The charging infrastructure and electric vehicle fleet can be customized according to the scale and population density of each city. Moreover, the application of advanced technologies (AI, IoT) enables Xanh SM to efficiently manage and operate in multiple locations.

The Xanh SM model also offers valuable lessons for others to emulate, such as integrating smart technologies, developing an electric transportation ecosystem, and managing and developing charging infrastructure. With this replication potential, Xanh SM is gradually addressing existing environmental challenges, contributing to the protection of the well-being of people in Vietnam and worldwide.

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