Vietnam: Destination for UBER to Develop

UBER is experiencing a rapid and impressive growth in the Vietnamese market thanks to the support of the Government and the Vietnamese people in adopting new services based on technology. That is the assertion of Mr. Damian Kassabgi, Director of Public Policy of UBER, Asia-Pacific, in an interview with Vietnam Business Forum magazine. Nam Pham reports.

Could you share something about the achievements of UBER in Vietnam in the past also business strategy in the future?

UBER has been operating in Vietnam for about 3 years and we have to assert that the UBER is experiencing very fast and impressive growth, easily reaching the first two digits, and even 3 digits. So there is no doubt that our growth is not run by us. The growth rate is about the consumers and the drivers. What’s quite different to other companies where the success of our product is very much dependent on how the government and the people in Vietnam accept the technology.

We have achieved success in getting the pilot program approved. This is a big step for us when it is implemented and approved by the Government of Vietnam. We thank the Government for that. We have the confidence about the future.

We see thousands of privates and tens of thousands of privates using our product to get around their city. Currently our service is available in Hanoi and Ho Chi Minh City, and is expected to be deployed in many other cities across the country. I would say that our target is more about the cities wherein and it’s very much up to the consumers and the drivers on the demand. And we are seeing a huge demand.

I think the main thing is that the Vietnamese is highly sophisticated on digital adaptation. Downloading the app is not hard. The Internet is generally good. And there are many drivers willing to share their cars. We are seeing a lot of them. And one of the special things about Vietnam is UBER MOTO, which is only available in a few Asian countries. So we have a service tailored to market needs in each region, and it's clear that UBER MOTO is growing fast too.

We are launching a great product called UberPool in Vietnam that allows two or three people to share a car. We also have the UBER Movement, which allows you to measure how the city is moving, and also what we can share and help the Government of Vietnam. We can look at our city in a different way and we can start managing the city differently. We can think of sharing media. And at the same time, if the Government understands how the city is moving, they will know where to invest the facilities, which roads need to be upgraded, which roads do not need because the Government can clearly see the situation using the street when using technology. I think there is something very interesting in the future if we look at the long-term as to how UBER supports the city, the way we think about data when thinking about the city, the way we think about traffic lights. In regulating traffic. And it could create future traffic lights, not just regular traffic lights with green or red lights, but smart lights that change over time.

What do you think about the business environment in Vietnam?

We greatly appreciate the interest and assistance of the Prime Minister in seeking solutions to current regulations to accept and support new services. We think we also need this support in many other countries. We are recognized by the Prime Minister and we look forward to be governed by the law. However, this requires managers to understand our business model, our technology. So we draft contracts via the Internet. We talked to the Government and received positive signals. The Government has agreed that contracts do not need to be done through text and can be done via digital technology. In it, the Government also thinks that it is necessary to ensure that all households participate in our programs in Vietnam.

At the conference of the future of Vietnam-US commercial relationship titled: “The US and Vietnam in 2017 and Beyond” held on May 19 in Hanoi, we found a clear sign that US businesses are always welcome in Vietnam. What we heard from the State President Tran Dai Quang here really meant great encouragement, giving us more confidence in the future of UBER in Vietnam.

The President mentioned three things that we are interested in. He wants "Green Growth," "Productivity Growth," and "Performance Growth." UBER fits those expectations. For "Green Growth," we want to share cars, we want to say that using less gasoline will reduce emissions from vehicles because shared vehicles help to carry more passengers in, when using less cars. We know that cars make up 30% of the world's emissions. So we can help reduce the number of vehicles on the road by sharing them, contributing to the realization of what the President has directed. For productivity gains, if we can make the city work better and help people save time on the car when they share their car, it's productivity. For performance boosting, it's meant to ensure that a car can not be used by one person, but three or four at a time.

UBER is applying digital technology successfully to its service. So do you think Vietnam can catch up with the Fourth Industrial Revolution?

In relation to the Fourth Industrial Revolution, UBER is a pioneer enterprise. We have transformed from traditional taxis into a newer form, allowing people to use their vehicles to share their trip. To us, this is the first step since we make something of the old economy more convenient and easier because of the new economy. And this connects UBER and the technology as well as the cars on the street. This is exactly one step towards the Industrial Revolution 4.0.

The Vietnamese are now very interested in technology, they are eager to use technology. And technology in Vietnam is controlled by law. And this is one of the important steps for Vietnam to catch up with the Revolution 4.0. And our revolution affects not only large companies but also households.

What do you think about the Vietnam-US relations in the future?
Vietnam and the United States have a very good and positive relationship. With strong support from leading businesses of the two countries, with strong commitments from the President, US Ambassador in Vietnam Ted Osius, and officials of the two countries at the conference in further promoting the bilateral trade and investment, this affirms that Vietnam is a destination for UBER to develop.

When the US withdrew from the TPP, US and Vietnamese businesses actively sought solutions to further strengthen their ever-growing trade and investment ties. The Government of Vietnam's continued pursuit of the TPP is clearly a good thing for the domestic economy.

One of the advantages of UBER products is that they do not necessarily have to be cross-border. Ultimately, the TPP does not significantly affect travel sharing or the technologies we bring to Vietnam. Because those who decide to use these technologies are local residents themselves.

What do you think about UBER's contribution to the development of Vietnam's economy?

Firstly, it is a contribution to technology. We always make sure our technology is good, even the best. Technology is an opportunity to ensure that household businesses can also participate in this program, allowing people to work part-time in economics, helping drivers find their way. It's easier. UBER's advantage is that the driver does not need to work full time.

The second is the close cooperation between us and the Government of Vietnam by launching new cooperation programs. We work together to understand new business platforms, new technology platforms, and jointly develop economies of scale through programs like UberEXCHANGE. This program we work with the Ho Chi Minh Communist Youth Union, to help startup businesses in Vietnam learn our success.

We’ve also heard that our household businesses are going to be the core of the growth in Vietnam. And I think partnering with household businesses is going to be something that we want to really embrace going forward.

Thank you very much!