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Vietnam EV maker VinFast gets $2.5 billion in funding

Vietnam EV maker VinFast gets $2.5 billion in funding
VinFast has exported nearly 3,000 electric cars to foreign markets, making it evident that the company is firming its foot in the overseas market.


Vietnamese automotive company VinFast said on Wednesday that it has received $2.5 billion in grants and loans. The electric vehicle manufacturer plans to use the funds to achieve its “global growth goals.”


Of the new pledges, Pham Nhat Vuong, Chairman of VinFast’s parent company Vingroup and the richest man in Vietnam, announced to contribute $1.5 billion of his personal wealth. This amount will be donated within the next year. Vingroup, Vietnam’s largest conglomerate, will invest $500 million and has further agreed to loan up to $1 billion to VinFast with a maximum tenor of 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,” Nguyen Viet Quang, chief executive officer of Vingroup said; adding that the grant and loan is its additional capital contribution for the breakthrough development of VinFast in the future.


A representative of Vingroup Chairman Pham Nhat Vuong said in a statement that the donation would “energize VinFast during the pivotal acceleration period to create a mark of Vietnam in the world’s electric vehicle market.”


Established in 2017, VinFast became a pure EV company just last year. It has six EV models across all popular segments, A to E, one electric bus model, and nine electric motorbikes. While VinFast has established itself as a popular national brand, the company is also expanding its foot abroad and says it has exported nearly 3,000 electric cars to foreign markets.


Last week, the company said it had shipped the second batch of 1,879 longer-range VF 8 SUVs to North America. Out of the total shipped cars, a batch of 1,098 cars will land in California and the remaining in Canada following a 20-day sea journey. Following the export of its second batch of cars to the U.S. and Canada, the Vietnamese automobile company expects to launch its EVs on the streets of France, Germany, and the Netherlands later this year.


According to a Reuters report, the EV maker secured 55,000 orders globally as of December last year, of which 12,000 are from the U.S. market, making it evident that the company is firming its foot in the overseas market. The Vietnamese car maker plans to open a production plant in North Carolina in 2025.


Last year, VinFast filed an initial public offering in the United States, aiming to raise $2 billion with a valuation of about $60 billion, according to another Reuters report. However, the timeline of the company’s listing remains unclear. While some speculate that  the IPO could happen in the second half of the year, some others expect it to get further delayed until next year.

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