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Reading: Vietnam’s richest man bolsters $8 billion bet in electric vehicles
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EV-a2z > News > Vietnam’s richest man bolsters $8 billion bet in electric vehicles
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Vietnam’s richest man bolsters $8 billion bet in electric vehicles

EV-a2zm
Last updated: 2023/07/04 at 11:32 AM
EV-a2zm Published May 8, 2023 4 Min Read
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4 Min Read
Vinfast VF6 electric subcompact crossover SUV car showcased at the Paris Motor Show, France - October 17, 2022.
Vinfast VF6 electric subcompact crossover SUV car showcased at the Paris Motor Show, France - October 17, 2022.
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Pham Nhat Vuong’s move to bet over $8 billion to fund its electric automaker VinFast is a well-known tale of a corporate tycoon who staked a significant portion of his fortune on EVs only to experience financial difficulties, Bloomberg reports.

Contents
Vuong has so far invested $8.2 billion in VinFast’s expansionCan VinFast succeed in the US highly competitive electric SUV market?

Later he sold noodle making company Technocom to Nestle @ $150 million in 2009
Now his #VinGroup is one of d richest organisations in SEA region & continuously striving 2 build Vietnam.
Pl meet d math prodigy & 1st billionaire of Vietnam
Pham Nhat Vuong
His life is interesting. pic.twitter.com/ftOpFF1xxl

— soumendu 🌎 (@dasoumendu) June 4, 2021

For instance, the same path was taken by household appliance billionaire James Dyson, Netflix China founder Jia Yueting, and China Evergrande Group’s troubled real estate tycoon. Pham Nhat Vuong is one of the latest to follow Elon Musk, the PayPal co-founder who survived what he commonly called Tesla’s “production hell.”

Unfortunately, it becomes increasingly improbable for any of these EV players to endure the challenges that Tesla did. In 2019, Dyson ended its EV business. A potential delisting from the Nasdaq is looming over Jia’s Faraday Future Intelligent Electric Inc. China Evergrande New Energy Vehicle Group Ltd., owned by Hui, is fighting to remain in business.

Vuong has so far invested $8.2 billion in VinFast’s expansion

VinFast filed for an initial public offering (IPO) in December 2022. However, it apparently postponed plans to list in the United States.

In the past six years, the automaker’s running costs and capital expenditures have been paid for with an astounding $8.2 billion from Vingroup JSC, Vuong’s conglomerate that owns residences, hotels, hospitals, and shopping malls, as well as from its affiliates and lenders.

Exciting news for Canada! The VF 8’s are en route and will soon be arriving to deliver the future of driving.

The first set of vehicles will be heading to British Columbia by the end of the month! Stay tuned for updates.#JoinTheCharge #BoundlessTogether #ElectricEverything pic.twitter.com/5NnTNeuEVB

— VinFast Canada (@VinFastCanada) May 2, 2023

However, VinFast sales only hit 93,000 e-cars and 162,000 e-scooters, providing a pitiful return on all the money spent.

Instead of backing down, Vuong has only increased his bet. It announced another $2.5 billion investment for VinFast, including $1 billion from his personal wealth.

Vietnam’s Richest Person And Vingroup To Inject $2.5 Billion Into Tesla Rival VinFast https://t.co/ztJ5CIIxHE pic.twitter.com/3Rp5XWqKA4

— Forbes (@Forbes) April 30, 2023

Can VinFast succeed in the US highly competitive electric SUV market?

The Vietnamese EV maker initially intends to begin shipping longer-range models of its VF 8 SUVs to US clients in April. However, Bloomberg’s report indicated that the plan had been moved this month.

However, it is uncertain whether or not those SUVs will gain popularity in the increasingly competitive EV market in the US. 

At least one human bought a VinFast. pic.twitter.com/dVmjFnrkoj

— Tamerlane's Thoughts (@TamerlaneBlog) May 5, 2023

It is worth noting that America’s leading brand Tesla has been lowering pricing and exerting pressure on established players who have been in business for over a century.

That said, VinFast will have to invest a lot of money to get Americans to know its brand. It will also need to establish distribution networks and provide delivery trucks.

See Also:

  • VinFast secures $2.5 billion fund for its global expansion
  • VinFast started customer deliveries for first VF 5 Plus models in Vietnam
  • VinFast plans to deliver longer-range electric SUVs to the US in April
  • VinGroup launches taxi and rental service company to boost VinFast EV’s deployment
  • VinFast announces successful customer delivery of its first 45 VF 8 models in the US

Did not expect to stumble upon a Vinfast showroom. Eye catching in a storm-troopery kind of way. pic.twitter.com/aykC9cVZ4u

— Conor Twomey (@conorjtwomey) May 7, 2023

Furthermore, the Vietnamese automaker will also need to get beyond the learning curve Musk encountered while attempting to manufacture cars in large quantities.

“Can VinFast run a marathon and sacrifice the short term for the long term?”

Asia-Pacific Center for Security Studies’ professor Alexander Vuving

Vuving further noted that the company might need substantial finances to endure deficits for many years.

Indeed, VinFast would take a while to recoup Pham Nhat Vuong’s enormous investment. Hopefully, it can strive in the electric vehicle industry as Tesla did despite the difficulties.

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TAGGED: Electric Vehicle, EV, Vietnam, VinFast
EV-a2zm July 4, 2023 July 4, 2023
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