VinFast’s billionaire founder to pump in another $1 billion to reach EV dreams

VinFast’s billionaire founder to pump in another $1 billion to reach EV dreamsVinFast’s billionaire founder to pump in another $1 billion to reach EV dreams
via BSA Channel
Vietnamese billionaire Pham Nhat Vuong is doubling down on his investment in electric vehicle maker VinFast.
Key points:
  • Vuong, who serves as VinFast‘s chief executive, announced he is investing $1 billion more of his personal fortune into the company.
  • He and Vingroup already added $11.4 billion into the company as of last year’s end.
  • The EV maker is currently bleeding money, relying heavily on internal company sales.
  • Vuong hints at potential overseas listings for other Vingroup subsidiaries.
Catch up:
The details:
  • Vuong has a 97% stake in VinFast through direct ownership and controlled companies. His latest cash injection brings his personal investment in VinFast to $2 billion.
  • In February, the company reported a net loss of over $2 billion in 2023 after missing its sales target.
  • “The electric vehicle market will continue to grow, surpassing combustion engine cars,” he stated at a shareholders’ meeting in Hanoi. “I will not give up on VinFast.”
  • VinFast is heavily reliant on sales to Vuong-owned taxi service and Vingroup units.
  • Vuong maintains Vingroup has no cash flow issues despite recent asset sales and bond extension negotiations.
What’s next:
  • VinFast’s ambitious expansion plans include factories in the U.S., India and Indonesia.
  • Vuong eyes potential listings for Vinpearl (hospitality) and GSM (taxi) subsidiaries if conditions are favorable.
 
Share this Article
Your leading
Asian American
news source
NextShark.com
© 2024 NextShark, Inc. All rights reserved.