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Sharing Economy

Ride-hailing app Grab faces roadblocks to growth in Vietnam

Singapore startup shut out of key areas as authorities complain about traffic

GrabBike drivers in Hanoi. Grab provides multiple services, including GrabTaxi, GrabBike and GrabShare in a five-year pilot program and is eager to expand them to other parts of Vietnam. (Photo by Takaki Kashiwabara)

HO CHI MINH CITY -- Despite a deal with Uber that has opened Southeast Asia's ride-hailing market, Singapore-based Grab is struggling to expand in Vietnam, where it has failed to secure approval from local authorities in the country's rising tourist destinations that are crucial for its growth.

These areas include Khanh Hoa, located on Cam Ranh Bay, a southern province that the government has designated as a test market for ride-hailing services.

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