GO-JEK Soon to Open Operations in Vietnam

GO-JEK reported inaugurate soon presence in Vietnam in July 2018. The arrival of GO-JEK to the Vietnamese market will challenge dominance Grab. After Uber surrendered, Grab practically without rivals in Southeast Asian countries other than Indonesia.

In the initial phase, GO-JEK will focus on partner acquisition strategy. One of them is by eliminating the 20 percent commission that is usually charged to drivers. It is considered that this will be a slick strategy, because of its competitors Grab charge a 28 percent commission to partners.

Vietnam is the first execution of the expansion plan, then there will be Singapore and the Philippines. Meanwhile, the area has become a service operations base Grab (and Uber which has now acquired its business in Southeast Asia by Grab).

After the acquisition of Uber Southeast Asia, Grab now dominates the industry in various countries. According to the results of a survey conducted by the Financial Times, the service portion Grab quite strong in every country in Southeast Asia. Only in Indonesia is the population more dominated by GO-JEK, and even then it is still in a dynamic competition stage.

According to some local reports in Vietnam, the presence of GO-JEK is quite welcomed, even so from a regulatory standpoint. Because Grab has so dominated the transportation market in the region. Local authorities' investigations also indicated violations of competition laws following the Uber acquisition.

GO-PAY's role?

There is no definite news about bringing in the services carried out by PT Dompet Anak Bangsa (GO-PAY). However, it is certain that the payment system will be a roadmap for GO-JEK products in each country. Since January 2017, the Vietnamese government has started compiling regulations to reinforce the rules e-money and virtual currencies. The framework is now under the auspices of the State Bank of Vietnam (SBV) -- just like the role of Bank Indonesia (BI) here.