Vietnamese conglomerate Vingroup on Wednesday announced its launch of VinBus, a non-profit company operating in the public transport sector and run entirely on electric vehicles manufactured by its automaker VinFast.
VinBus Ltd. has a charter capital of VND1 trillion (US$43 million) and is expected to operate its first bus routes next year.
Hanoi, Hai Phong, Da Nang, Ho Chi Minh City, and Can Tho will be the first major cities in Vietnam to see VinBus buses in operation, staring March 2020.
In the company’s first phase, 3,000 electric buses manufactured by VinFast, a subsidiary of Vingroup, will be put to use.
VinFast is already investing in a new factory specializing in manufacturing electric buses for this purpose.
The buses are built with technology and components supplied by Germany’s Siemens, the largest industrial manufacturing company in Europe.
The launch of VinBus is Vingroup’s next step in advancing its business strategy of developing eco-friendly vehicles, including electric buses.
As a non-profit company, VinBus will use 100 percent of its profits to re-invest with a goal of improving its services and expanding its network of modern public transport, making it more accessible to the mass public, Vingroup said in a statement.
“We have set our eyes on developing and promoting environmentally friendly vehicles to phase out fossil fuel cars ever since we entered the auto industry,” said Nguyen Viet Quang, vice president and generall director of Vingroup.
Vinfast introduced its first three car models in November 2018, including the LUX A2.0 sedan, the LUX SA2.0 SUV, and the Fadil city car.
“Providing public transport services with our own smart electric buses is one of Vingroup’s crucial steps in bringing new, hi-tech experiences to the public and helping to shape civilized habits and create a healthy and modern living environment for the people,” Quang said.
Vingroup has investments in multiple sectors including real estate, education, consumer retail, smartphone production, and artificial intelligence (AI) and medical research.