Indosat is targeting the automated vehicles market in Vietnam, partnering with Xanh SM for smart mobility solutions. The focus on commercial AVs aligns with Vietnam’s smart city initiatives, providing economic advantages and efficiency. Indosat aims to leverage this growing market for digital infrastructure and establish itself as a pioneer in AV technology in Southeast Asia.
Key View
- Indosat is targeting the automated vehicles (AV) market in Vietnam, which offers commercial opportunities for operators providing digital infrastructure.
- The deployment of commercial AVs, including robotaxis and traditional ride-hailing services, offers increased efficiency and lower operational costs.
- Commercial vehicles, with their predictable routes and schedules, present fewer technical challenges compared to consumer AVs, allowing for a smoother transition and early realization of benefits.
Indosat has formed a partnership with an electric taxi service provider, Xanh SM, to create smart mobility solutions in Vietnam. Indosat is set to provide the Internet of Things infrastructure and analytics for the taxi fleet to support its operations. As of January 2025, Xanh SM has operated its EV fleet across 59 provinces and has expanded its operations into Laos and Indonesia. The operator will provide features including monitoring during metrics such as speed, acceleration and anomalies in behavior or vehicle malfunctioning. The partners will commence their pilot testing over the next six months followed by roll-out in the following stages.
Robotaxis present economic advantages for ride-hailing services by reducing labour costs, which can help offset the higher initial expenses of necessary sensors. These vehicles can operate almost continuously, pausing only for refueling or battery recharging, thereby maximising their utilization and efficiency.
By targeting this sector, Indosat positions itself advantageously to leverage the growing demand for digital infrastructure that supports AV technology. The Vietnamese AV market not only presents an opportunity due to its rapidly urbanising population and increasing appetite for technological innovations but also aligns with regional smart city initiatives.
Indosat, a prominent telecommunications provider, is strategically pursuing a first-mover advantage in Vietnam’s burgeoning autonomous vehicle (AV) market. Recognizing the rapid technological advancements and increasing demand for smart mobility solutions, Indosat plans to leverage its expertise in digital services to forge new pathways in this emerging sector. By capitalizing on Vietnam’s progressive embrace of technology and smart city initiatives, the company aims to establish itself as a pioneer in offering integrated AV solutions that cater to both urban and rural transportation needs.
The Vietnamese government has been actively fostering a supportive environment for technological innovation, creating a ripe landscape for companies like Indosat to introduce autonomous vehicle technology. With its robust digital infrastructure and commitment to expanding connectivity, Vietnam provides a conducive setting for testing and deploying AV systems. Indosat’s entry into this market aligns with its broader strategy of expanding its digital footprint across Southeast Asia, aiming to offer cutting-edge solutions that enhance mobility and connectivity.
Indosat’s initiative not only underscores its commitment to technological innovation but also highlights the transformative potential of AV technologies in enhancing transportation networks. By investing in research and development and collaborating with local tech firms, Indosat seeks to tailor its solutions to meet the unique needs of the Vietnamese market. This move is expected to set the stage for widespread adoption of autonomous vehicles in the region, ultimately reshaping the future of transportation and positioning Indosat as a leader in the advancement of smart mobility solutions.
Source : Indosat Seeking First-Mover Advantage In Vietnam’s AV Market