Vietnam’s richest man, billionaire Pham Nhat Vuong, says he personally and the conglomerate that he chairs, Vingroup, will continue financing VinFast despite heavy losses incurred by the EV-maker since 2017.
“We will focus all our resources on VinFast. We surely will never let go of VinFast,” Vuong said at Vingroup’s AGM in Hanoi Thursday, responding to questions from shareholders.
Vuong is now CEO of VinFast, which listed on the Nasdaq last August. He is the richest man in Vietnam with a net worth of $4.3 billion, according to Forbes rankings announced earlier this month.
Vuong, who has so far invested $1 billion of his own money in the EV maker, and will do the same in the coming time, he said at the AGM. Vingroup, Vuong, and his family control almost 100% of VinFast.
Vuong affirmed that maintaining VinFast and building a world-class brand for Vietnam was a “social responsibility”. Therefore, Vingroup has unloaded part of its assets to finance the EV business, he said.
The VinFast CEO went on to say that the company’s localization rate has reached nearly 80% (exceeding 50% if smaller parts are taken into account).
Elaborating on the firm’s plan to build factories overseas, Vuong said this would help VinFast reduce logistics costs as well as enjoy local tax incentives.
In the case of its U.S. plant, VinFast will receive over $2 billion in financial support from the state government for its $2 billion investment over five years, he noted.
Vuong also expressed firm belief that the EV trend would be an irreversible, long-lasting one given its lower operating costs and environmental friendliness.
To questions regarding profitability, Vuong said VinFast was expected to break even in EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) and post positive cash flow in 2026.
He noted that GSM (Green-Smart-Mobility) JSC, the electric car and motorbike rental and taxi service arm under Vingroup, was expanding operations to international markets. Vingroup was looking for opportunities to list GSM on an international stock exchange, he said
Vingroup was also working on a plan to list Vinpearl, its hospitality and recreation arm, by the end of this year, he added.
At the AGM, shareholders approved a plan targeting after-tax profits of VND4.5 trillion ($177.44 million) on record-high revenues of VND200 trillion this year, up 119% and 24% year-on-year.