Indosat aims to target Vietnam’s automated vehicles market, partnering with Xanh SM for IoT infrastructure and smart mobility solutions, enhancing efficiency in commercial transport and supporting regional smart city initiatives.
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, one of Indonesia‘s leading telecommunications companies, is now setting its sights on the burgeoning audio-visual (AV) market in Vietnam. Recognizing the country’s increasing demand for digital content and advanced media solutions, Indosat aims to leverage its experience and technological expertise to capture a significant share of this evolving landscape. As Vietnam‘s economy continues to grow, the appetite for high-quality audio-visual services among consumers and businesses alike is rapidly expanding.
By entering the Vietnamese AV market, Indosat seeks to establish a first-mover advantage, positioning itself ahead of potential competitors. This strategy not only allows for the introduction of innovative content offerings but also enables Indosat to build strategic partnerships with local content creators and distributors. By fostering these collaborations, the company can ensure a diverse range of services tailored to local tastes and preferences, thereby enhancing customer engagement and loyalty.
Additionally, Indosat’s foray into Vietnam‘s AV sector aligns with its broader international expansion strategy. Utilizing its existing infrastructure and technological prowess, the company aims to provide seamless, high-quality user experiences, capitalizing on Vietnam‘s youthful demographic and tech-savvy population. As Indosat navigates this competitive landscape, its proactive approach could set a benchmark for future entrants in the AV market, ultimately enriching the digital ecosystem in Vietnam.
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