VinFast’s billionaire founder to pump in another $1 billion to reach EV dreams
By Ryan General
11 days ago
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:
- VinFast made global headlines with its Nasdaq listing in August 2023. The company has since seen its share price crater as it struggles to gain traction to gain traction in competitive markets.
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.
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