EV-maker VinFast gets $132 mln gift from billionaire Vingroup founder

Billionaire Pham Nhat Vuong, founder and chairman of Vietnam’s biggest private conglomerate Vingroup, gifted VND3.27 trillion ($131.7 million) to its EV arm VinFast in the first half of this year.

The gift, detailed in Vingroup’s H1 earnings report, is part of Vuong's commitment to contribute at least $1 billion to VinFast, listed on Nasdaq as VFS.

In addition to the gift, Vuong has carried out transactions to transfer VND1.8 trillion ($72.3 million) worth of VinFast shares. He has also continued his long-standing practice of not receiving a salary from Vingroup.

Vuong took over as chairman of VinFast in March 2022. Early this year, he left the position of board chairperson to Le Thi Thu Thuy and assumed the role of CEO, aiming to directly oversee Vietnam’s first EV manufacturer.

As of end-Q2, Vuong had completed his $1 billion funding commitment to VinFast, which included VND20.6 trillion ($828.14 million) disbursed in 2023.

In June, Vuong announced that Vingroup, its subsidiaries and financial institutions had collectively provided financing of nearly $13 billion for VinFast from 2017 to the end of Q1 2024.

He also pledged additional financing for the EV maker in 2025-2026, with the expectation that the company will break even in terms of EBITDA (earnings before interest, taxes, depreciation, and amortization) and generate positive cash flow by 2026.

Manufacturing was Vingroup's second-largest revenue source in H1, behind property, generating VND14.2 trillion ($570.8 million).

Xanh SM, an electric taxi ride-hailing service and a major purchaser of VinFast vehicles, reported revenues of VND5.7 trillion ($229 million).

VinFast delivered 21,747 electric vehicles in the first half of 2024, up 92% year-on-year. This included 12,058 units in Q2, up 26% year-on-year and 24% over Q1/2024.