Vietnamese billionaire-backed VinSpeed raises capital to $573 mln

VinSpeed High-Speed Rail Investment and Development JSC, where Vietnamese billionaire Pham Nhat Vuong holds a controlling stake, has raised its capital from VND6 trillion to VND15 trillion ($573.5 million).

The company’s shareholder structure remains unchanged, VinSpeed announced on the National Business Registration Portal.

In addition to the capital hike, the rail developer is actively recruiting for such positions as project CFO, senior BIM (Building Information Modeling) engineers, BIM department head, and senior technology transfer specialists.

The company said it is ramping up recruitment to advance two high-speed rail lines - Ho Chi Minh City-Can Gio linking the center of the southern metropolis and its Can Gio commune, and Hanoi-Quang Ninh between the capital city and the northern province of Quang Ninh.

For the North-South high-speed railway project, the firm is awaiting the government’s investor approval.

VinSpeed was established in May with Vuong - chairman of Vietnam’s leading private conglomerate Vingroup (HoSE: VIC) - holding a 51% stake, and his two sons, Pham Nhat Minh Hoang and Pham Nhat Quan Anh, each owning 0.5%.

The shareholder structure includes Vingroup with a 10% stake, Vietnam Investment Group JSC holding 35%, and Pham Thuy Hang – vice chairwoman of Vingroup – with 3%.

Vuong made two capital contributions to the company in June and July, transferring a total of 135.6 million VIC shares he owns. The stake was valued at around VND12.75 trillion ($487.44 million) at the time of transfer.

On May 14, VinSpeed announced its registration to invest in the North-South high-speed railway project.

The behemonth project will have an estimated investment of VND1.56 quadrillion ($59.64 billion), excluding costs related to compensation, relocation support, and resettlement for land clearance. It is scheduled for completion by 2030.

VinSpeed commits to mobilizing 20% of the total investment capital, equivalent to $12.27 billion. For the remaining 80%, excluding costs related to compensation, relocation support, and resettlement for land clearance, the company proposed borrowing from the state budget, through zero-interest loans, repayable over a 35-year period from the disbursement date.

Since the beginning of the year, VIC shares on the Ho Chi Minh Stock Exchange (HoSE) have surged 180%, reaching VND117,400 ($4.34) apiece on July 16.

Pham Nhat Vuong has become the first Vietnamese person to have a fortune of $9 billion, according to Forbes's update on May 8. Vuong ranked 330th in the magazine's listing of the world's richest people.

Vingroup recorded revenue of VND84.05 trillion ($3.21 billion) in the first quarter of 2025, its record high. The figure, mentioned in the conglomerate's Q1/2025 financial statement, represented a 287% surge year-on-year and 28% of the year's revenue target.

For 2025, Vingroup has set ambitious targets of VND300 trillion ($11.47 billion) in revenue and VND10 trillion ($382.29 million) in after-tax profit, up 59% and 88% respectively compared to last year.

Vingroup plans to expand into infrastructure and green energy, complementing its existing pillars of real estate and manufacturing, said Vuong told VIC's 2025 AGM on April 24.