Bloomberg’s exclusive interview with Vingroup Chairman Pham Nhat Vuong was published on the 5th anniversary of the inauguration of the VinFast automobile factory (June 14, 2019 – June 14, 2024).
Although VinFast has only been producing vehicles for over five years, it is now competing with giants such as Tesla and Hyundai as it enters the US market. VinFast is also making inroads into markets like India and Indonesia.
How long will Mr. Pham Nhat Vuong continue to financially support VinFast? “Until I run out of money,” he asserted in the Bloomberg TV interview at Vingroup’s headquarters in Hanoi.
Mr. Pham Nhat Vuong has a net worth of about $5.3 billion. He is confident that he can steer VinFast through challenges, despite global giants like Toyota and Volkswagen facing difficulties.
VinFast listed on the US stock exchange last August, and its share price surged by 700% in the first two weeks. Although the share price has since declined, and the free-float ratio is only about 2%, Mr. Pham Nhat Vuong is not in a hurry to increase the free-float.
“We don’t care about the stock price at this moment, and we’re not in a rush to put more shares on the market. The free-float ratio doesn’t affect large and long-term investors,” Mr. Vuong explained.
VinFast faces numerous challenges to become a successful global brand. Chinese electric carmakers are ramping up exports of cheap EVs, and Tesla is cutting prices. VinFast is also encountering obstacles in the US market.
The electric vehicle industry is also witnessing efforts similar to what Elon Musk has achieved with Tesla. VinFast delivered 9,689 vehicles in the first quarter of this year, just about 10% of its planned annual target of 100,000.
Ken Foong, a Bloomberg Intelligence analyst, opined that VinFast needs to build its brand and compete with established players. “It won’t be easy to succeed in the US. It will take time and money,” he said.
Vingroup, its subsidiaries, and financial institutions have provided VinFast with approximately $12.9 billion from 2017 to March this year. VinFast is constructing a factory in North Carolina, has broken ground in India, and plans to build a plant in Indonesia.
Mr. Vuong remains undaunted by the challenges. Every morning, he wakes up to play with his grandchildren. “I sleep a full eight hours every day and don’t worry about anything,” he said. “VinFast will soon break even and be self-sufficient.”
Mr. Vuong is Vietnam’s most influential business leader. Vingroup operates in numerous sectors in Vietnam.
The Vingroup Chairman affirmed that strongly promoting VinFast is to elevate Vietnam’s manufacturing industry to international standards because “VinFast is not just a business project but also a contribution project.” VinFast does not produce cheap cars but focuses on reasonably priced, value-for-money products.
Regarding plans for the US market, Mr. Vuong shared that revenue this year would increase by 30-40 times, with this growth trend continuing for the next five years. VinFast’s current strategy involves developing a dealership network to boost sales and implementing direct marketing to allow customers to experience the vehicles themselves.
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