VinFart cars in a show in Ha Noi. The cars will be used to serve delegates from ASEAN countries during the 2020 ASEAN Summit held in Ha Long City in the northern province of Quang Ninh from November 27 to 29, 2020. — Photo courtesy of Vingroup

Vingroup said it will guarantee payments worth VND30 trillion (US$1.3 billion) for the obligations of VinFast Manufacturing and Trading Co., Ltd. related to the issuance of corporate bonds and domestic and foreign loans in the 2019-20 period.

VinFast is the first automobile manufacturer in Viet Nam.

In September this year, Vingroup guaranteed payment for VinFast's obligations related to bonds with a maximum face value of VND5 trillion, which are expected to be issued this year.

VinFast was also guaranteed by Euler Hermes, an export credit agency in Germany, with a loan of $950 million in a 12-year term to import machinery and equipment for production.

The VinFast complex was built on an area of ​​more than 500,000sq.m of the complex’s total area of 335ha in Dinh Vu-Cat Hai Industrial Park in Hai Phong City, with an investment of $1.5 billion. It’s equipped with modern technology and is designed to have a capacity of 250,000 vehicles per year in the first phase. The second phase will see capacity increase to 500,000 cars per year by 2025. — VNS