VinGroup published a press release on April 26, announcing that its electric vehicle unit VinFast has secured a $2.5 billion capital injection.
This fresh funding will aid the electric automaker in accelerating its US expansion.
Source of funds
The press release highlighted that VinGroup Chairman Mr. Pham Nhat Vuong would provide $1 billion through non-refundable grants. Likewise, VinGroup plans to allocate $500 million. Apart from that, VinGroup may also extend a five-year, $1 billion loan to VinFast.
Notably, Mr. Pham Nhat Vuong will deliver the promised $1 billion within the upcoming year.
Purpose
This fresh $2.5 billion in grants and loans is expected to aid VinFast in achieving its goals in the global electric vehicle industry.
It is worth noting that VinFast has reported impressive growth in the global market as it strives to meet its production and corporate growth objectives.
“The growth potential of VinFast has been demonstrated in the past five years. This is a pivotal period for VinFast to accelerate towards a solid competitive position in the world’s electric vehicle market.
As the parent corporation of VinFast, Vingroup is providing support to enable VinFast to continue its development and secure its future. The grant and loan of $1.5 billion is Vingroups additional capital contribution for the breakthrough development of VinFast in the future. This is also once-in-a-lifetime opportunity for the development of Vietnam’s industry. We call on everyone to support and build a world-class Vietnamese brand.”
VinGroup CEO Mr. Nguyen Viet Quang
The chair obviously has strong confidence in the automaker, which is now bringing EVs to the US market.
“To build a national brand that can compete in the international market is particularly difficult, 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 of Vietnam in the world’s electric vehicle market. The success of VinFast will promote the development of Vietnam’s industry and technology while actively contributing to the global green transformation.”
Chairman Mr. Pham Nhat Vuong’s spokesperson
See Also:
- 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
- VinFast cuts lease prices for first customers in the United States, starting March 1
- VinFast sees progress in its Europe expansion efforts: ESG results and new partnership
Now, VinFast will have greater resources available to help it develop and meet its growth targets in the global market. The new VF 5 is one of the six all-electric vehicles that VinFast has already made available to the public. However, it will take hundreds of thousands of sales for it to pay back its parent company.
