GS Caltex Invests in Vietnamese Car Wash Startup to Enter Local Market

[Asia Economy Reporter Hwang Yoon-joo] GS Caltex is entering the car wash market in Vietnam.

GS Caltex announced on the 7th that it has signed an equity investment agreement worth 39 billion VND (approximately 2 billion KRW) with VI Automotive Service, the parent company of the car wash operator VietWash. Through this, GS Caltex will acquire a 16.7% stake in VI Automotive Service.

VietWash is a car wash startup operating more than 50 car wash stations across Vietnam, mainly in Ho Chi Minh City. VietWash was the first in Vietnam to introduce automatic car washes exclusively for motorcycles, and in an environment where there are almost no car wash stations at gas stations in Vietnam, it has formed a strategic partnership with PetroLiemex Saigon, a subsidiary of the state-owned oil company PetroLiemex, operating car wash stations at over 20 gas stations.

At the signing ceremony, GS Caltex also decided to promote the entry of its subsidiary GS M-Biz’s vehicle maintenance franchise autoOasis into Vietnam. GS M-Biz plans to pursue the vehicle maintenance franchise business together with VietWash and will provide vehicle maintenance operational know-how accumulated from operating over 530 franchises domestically, as well as the equipment, parts, and IT infrastructure necessary for the maintenance business.

Additionally, after entering the vehicle maintenance franchise business, GS Caltex plans to directly supply lubricants produced domestically and expand lubricant sales in the Vietnamese market based on this.

Furthermore, GS Caltex will work with VietWash and PetroLiemex Saigon to understand changes in the Vietnamese fueling and automotive-related markets and, based on this, explore future mobility business opportunities such as non-fuel businesses at gas stations, car sharing, and electric vehicle charging.

A GS Caltex official stated, "Through this investment agreement, we have entered the rapidly growing Vietnamese local market economically. Despite the difficult business environment due to COVID-19, as demonstrated by this investment agreement conducted via video conference, we will continuously review plans to expand business into other ASEAN countries in the future."