Kakao Mobility, a taxi-hailing arm of Korean internet giant Kakao, has signed a strategic cooperation agreement with VinFast, an electric car company owned by Vietnamese conglomerate Vingroup to promote green transportation infrastructure in Vietnam.

Vingroup CEO Nguyen Viet Quang (L) and Kakao Mobility CEO Ryu Geung-Seon. Photo: Kakao Mobility

The deal, which was inked during South Korean President Yoon Suk Yeol's state visit to Vietnam last week, will enable Kakao ride-hailing to team up with Vingroup unit Vingroup unit's Green and Smart Mobility (GSM) JSC in the operation of technology-based taxi services, Tech in Asia reported.

The South Korean company will provide self-driving services with advanced technologies, including high-precision maps, while VinFast will collaborate in the development of eco-friendly electric vehicles and the establishment of charging station infrastructure.

Kakao Mobility said Vietnam is emerging as one of the most popular tourist destinations in Southeast Asia for South Korean tourists. On the other hand, the country welcomed around 300,000 Vietnamese tourists last year.

According to data cited by Chosun Ilbo, Vietnam has surpassed Japan and China to become the biggest spending group of tourists in South Korea. BC Card showed that Vietnamese tourists topped the list with an average credit card transaction of KRW197,000 (about US$150) per person in South Korea last year.

The partnership between Kakao Mobility and VinFast is expected to bring more convenience to Vietnamese travelers in South Korea and enhance the experience of South Korean tourists in Vietnam.