Fresh funding pledges of up to $2.5 billion, led by $1 billion from Vingroup chairman Pham Nhat Vuong, have been announced for VinFast’s development to enable the Vietnamese electric vehicle maker to achieve its global growth goals.
Vuong and Vingroup intend to contribute $1 billion and $500 million, respectively, by way of non-refundable grants, said VinFast - the car unit of Vingroup.
The EV maker said its parent conglomerate may offer a further $1 billion with a maximum tenure of five years. The $1 billion sum from Vingroup founder Vuong will be donated within the next year.
With further financial support, VinFast will have access to more resources to boost its development and accelerate its growth objectives in the global market, the company said.
“This is a pivotal period for VinFast to accelerate towards a solid competitive position in the global electric vehicle market,” said Vingroup CEO Nguyen Viet Quang.
“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 a once-in-a-lifetime opportunity for the development of Vietnam’s industry.”
A representative for the Vingroup chairman said to build a national brand that can compete in the international market is particularly difficult and 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 for Vietnam in the world’s electric vehicle market.”
VinFast was established in 2017 and became a wholly EV company specializing in designing and manufacturing electric cars and motorbikes in 2022. VinFast has introduced six EV models across all popular segments, A to E, one electric bus model, and nine electric motorbikes, and exported nearly 3,000 electric cars to foreign markets.
In Vietnam, VinFast has established itself as a popular national brand. Internationally, VinFast is steadily expanding its business. Following the export of its second batch of cars to the U.S. and Canada in April, the maker’s EVs are expected to be launched on the streets of France, Germany, and the Netherlands later this year.
VinFast expects to inaugurate its U.S. manufacturing complex in North Carolina in 2025. It announced in March last year that it would build the North Carolina complex with a total of $4 billion in investment, and the plant will create more than 7,000 jobs and manufacture 150,000 EVs a year.