Hanoi, April 26, 2023
Vingroup Joint Stock Company, VinFast Joint Stock Company, and Mr. Pham Nhat Vuong, Vingroup’s Chairman, have announced that Mr. Pham Nhat Vuong and Vingroup intend to contribute 1 billion and 500 million USD respectively by way of non-refundable grants, and Vingroup may loan up to a further 1 billion USD to VinFast with a maximum tenor of five years. The 1 billion from Mr. Pham Nhat Vuong will be donated within the next year.
The 2.5 billion USD in grants and loans will facilitate VinFast’s continuing development enabling it to achieve its global growth goals.
The decision was reached due to VinFast's remarkable progress in the global market, as it continues to achieve its production and business development targets. With further financial support, VinFast will have access to more resources to boost its development and accelerate its growth objectives in the global market.
Speaking about the decision, Mr. Nguyen Viet Quang, CEO of Vingroup said: “The growth potential of VinFast has been demonstrated in the past five years. This is a pivotal period for VinFast to accelerate towards a solid competitive position in the world’s electric vehicle market. As the parent corporation of VinFast, Vingroup is providing support to enable VinFast to continue its development and secure its future. The grant and loan of $1.5 billion is Vingroup's additional capital contribution for the breakthrough development of VinFast in the future. This is also once-in-a-lifetime opportunity for the development of Vietnam’s industry. We call on everyone to support and build a world-class Vietnamese brand.”
A representative of Vingroup Chairman Pham Nhat Vuong, also shared: “To build a national brand that can compete in the international market is particularly difficult, challenging, and even requires sacrificing immediate benefits. Mr. Pham Nhat Vuong plans to donate some of his personal assets to energize VinFast during the pivotal acceleration period to create a mark of Vietnam in the world’s electric vehicle market. The success of VinFast will promote the development of Vietnam's industry and technology while actively contributing to the global green transformation."
VinFast, a member of Vingroup, was established in 2017 and became a pure EV company specialized in designing and manufacturing electric cars and motorbikes from 2022. VinFast has introduced 6 EV models across all popular segments, A to E, 1 electric bus model and 9 electric motorbikes, and exported nearly 3,000 electric cars to foreign markets.
In Vietnam, VinFast has established itself as a popular national brand, winning the hearts of customers. Internationally, VinFast is steadily making progress into new markets, receiving positive feedback, and gaining popularity. Following the export of its second batch of cars to the US and Canada in April 2023, VinFast's electric vehicles are anticipated to be launched on the streets of France, Germany, and the Netherlands later this year.