Vietnam, home to nearly 93 million owning about 45 million motorbikes, is considered an alluring market for bike-hailing services. Cost of running business in Vietnam is lower as compared to that of Singapore or Malaysia.
Late last year, Go-Jek confirmed the Philippines to be the first country in the region that it will set up operation. Vietnam therefore would be the third market in the world that Go-Jek is present, following Bangladesh and the Philippines.
An array of challenges are lying ahead as Go-Jek will have to compete with similar service providers notably the market-leading players, Uber Technologies and Grab.
For Go-Jek, investing in the market will create opportunities for the company to develop the fintech platform Go-Pay.
Go-Jek, a $US5 billion company, has raised more than US$1.5 billion from a dozen investors including BlackRock and Google.