Vietnamese Electric Taxis Make Cebu Debut Amid Local Industry Concerns
A fleet of distinctive green-colored taxis has emerged from a garage in Cebu City's reclamation area, marking what some are calling a Vietnamese invasion of the local transportation sector. These vehicles, which began operating last week, represent a significant shift toward electric mobility in one of the Philippines' busiest urban centers.
The Green Fleet Arrives
The taxis are electric vehicles manufactured in Vietnam by the company VinFast, with approximately 600 units reportedly now operating throughout Cebu. They are managed by Green and Smart Mobility Philippines, Inc., a local subsidiary of the Vietnamese parent company Green and Smart Mobility (GSM). The consistent green theme—from the company name to the vehicle color and driver uniforms—serves a deliberate branding purpose: to communicate an environmental protection message to the public.
Regulatory Approval and Local Backlash
While the Land Transportation Franchising and Regulatory Board (LTFRB) has granted Green GSM provisional authority to operate in Metro Cebu, questions remain about the approval process. In a country where government agencies have occasionally been accused of granting special favors to select applicants, such reservations are understandable, though not necessarily indicative of wrongdoing in this specific case.
Traditional white taxi operators have expressed significant discontent with the development. They argue that Cebu's streets are already congested, and question why they weren't given priority access to electrification opportunities or government assistance to transition their own fleets.
Historical Resistance and Current Challenges
The situation echoes previous transportation modernization efforts that faced substantial resistance. The jeepney modernization program encountered vehement opposition from operators and drivers, who rejected even government-offered financing for new vehicles. While taxi operators might prove more receptive to assistance, current fiscal realities present additional hurdles.
President Ferdinand Marcos Jr.'s 2026 budget vetoes eliminated billions in funding, including support for the domestic car manufacturing program. This setback delays local vehicle production capabilities, meaning that by the time the Philippines can manufacture its own electric vehicles, the technology may already be outdated.
Vietnam's Manufacturing Advantage
Unlike the Philippines, Vietnam has established factories producing electric cars at scale. This manufacturing capacity gives Vietnamese companies like VinFast a competitive edge in the regional electric vehicle market. The arrival of their taxis in Cebu serves as a tangible reminder of this technological and industrial gap between the two Southeast Asian nations.
The introduction of Vietnamese electric taxis in Cebu City represents more than just new vehicles on the road—it highlights ongoing challenges in transportation policy, local industry development, and environmental sustainability that Philippine authorities must navigate in the coming years.
