VinFast receives US$2.5 billion for development

Thursday, Apr 27, 2023 10:42

VinFast offices located in an industrial park in Cat Hai Island near the city of Hai Phong. — Photo courtesy of the company

Vingroup’s VinFast company and Vingroup’s Chairman Pham Nhat Vuong announced on April 26 that chairman Vuong and Vingroup intended to contribute US$1 billion and $500 million respectively by way of non-refundable grants, and Vingroup may loan up to a further $1 billion to VinFast with a maximum tenor of 5 years.

The $1 billion from chairman Vuong will be donated within the next year.

The $2.5 billion 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, Nguyen Viet Quang, CEO of Vingroup, said the growth potential of VinFast had been demonstrated in the past five years.

This was 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 was providing support to enable VinFast to continue its development and secure its future. The grant and loan of $1.5 billion was Vingroup's additional capital contribution for the breakthrough development of VinFast in the future. This was also a once-in-a-lifetime opportunity for the development of Viet Nam’s industry.

A representative of Vingroup’s Chairman Vuong said that building a national brand that can compete in the international market was particularly difficult and challenging, and even required sacrificing immediate benefits.

Vuong planned to donate some of his personal assets to energise VinFast during the pivotal acceleration period to create a mark of Viet Nam in the world’s electric vehicle market. The success of VinFast would promote the development of Viet Nam's industry and technology while actively contributing to the global green transformation. — VNS

Comments (0)