HCMC – Chairman of Vingroup Pham Nhat Vuong will provide automaker VinFast with VND50 trillion, equivalent to nearly US$2 billion, from his personal assets, according to an announcement from Vingroup on November 12.
Vietnamese conglomerate Vingroup and Vuong affirmed their commitment to supporting VinFast financially. Vuong’s funding would come directly from his personal assets and would not impact the interests of Vingroup and VinFast shareholders.
In addition, Vingroup plans to extend a new loan of up to VND35 trillion to VinFast from now through the end of 2026.
Vingroup will also convert its existing loan of approximately VND80 trillion into preferred shares with dividend benefits.
This investment strategy aims to provide VinFast with ample resources to sustain operations, finance essential investments, and fulfill its obligations, targeting breakeven and a self-sustaining cash flow by the close of 2026.
VinFast has completed its initial investment phase and currently operates a manufacturing plant in Cat Hai-Haiphong with an annual capacity of 300,000 vehicles. As of October 2024, VinFast has delivered over 51,000 electric vehicles in Vietnam, capturing the largest market share among electric vehicle manufacturers.
Internationally, VinFast is expanding its footprint beyond the U.S., Canada, and Europe, entering new markets in the Middle East, Indonesia, the Philippines, and India.
