On November 12, 2024, Vingroup and Mr. Pham Nhat Vuong announced a financial support package for VinFast. From now until the end of 2026, Vingroup plans to provide VinFast with new loans of up to VND 35,000 billion. Mr. Pham Nhat Vuong also committed to sponsoring Vinfast with VND 50,000 billion. In addition, Vingroup will invest more in VinFast Vietnam by converting all existing loans of about VND 80,000 billion into preferred shares entitled to dividends.

The support package aims to provide VinFast with sufficient resources and additional reserves to finance its business operations, essential investments, and fulfill other obligations. The goal is to achieve a break-even point and positive cash flow by the end of 2026. In parallel, VinFast will continue to actively pursue independent capital mobilization strategies to meet its capital needs and will only utilize the support from Vingroup and Mr. Pham Nhat Vuong if its capital mobilization falls short of the planned expectations.

Currently, VinFast has completed its initial investment phase, operating a maximum capacity car manufacturing plant of 300,000 units/year in Cat Hai, Hai Phong; research and development, and product line refinement; and a shift in its distribution model from direct-to-consumer to an agency-based approach. The company is now in an acceleration phase, boosting sales across all markets and optimizing its cost structure.

For Vingroup, the support agreement is based on a careful analysis of cash flow and profit balance, aiming to ensure a safe level of financial indicators for the group while maintaining a balance of interests. Once VinFast reaches its break-even point and achieves financial autonomy with a thriving business, Vingroup will benefit from these investments.

The conversion of approximately VND 80,000 billion in loans into preferred shares will alleviate VinFast’s short-term financial burden while preserving Vingroup’s interests through dividend entitlement and the right to convert into common shares of VinFast Vietnam Production and Trading Joint Stock Company or entitlements in VinFast Singapore (VFS). The new loan of up to VND 35,000 billion will be arranged from the group’s business operations, dividends from subsidiaries, investments, and may consider partial divestment from investments or subsidiaries if necessary, ensuring a reasonable price.

Mr. Pham Nhat Vuong, as the CEO and major shareholder of VinFast, arranged the sponsorship of VND 50,000 billion from his personal assets, ensuring no impact on the interests of Vingroup and VinFast shareholders.

This support decision comes as VinFast becomes the best-selling automotive brand in the Vietnamese market and has shown promising results in the global market, underscoring its potential and future development prospects.

VinFast cars

VinFast was the best-selling car brand in Vietnam for the first ten months of 2024.

In the first ten months of the year, VinFast delivered over 51,000 electric vehicles of various models in the Vietnamese market, officially surpassing foreign car brands to capture the largest market share. Notably, VinFast also became the first electric car brand to outperform its gasoline-powered competitors just over two years after its transition to an all-electric lineup. In the international market, VinFast has made breakthrough advancements, continuing to expand its business in the US, Canada, and Europe while rapidly entering new markets such as the Middle East, Indonesia, the Philippines, and India.

Currently, VinFast offers seven electric car models across all segments, from small SUVs to E-segment SUVs, with diverse price ranges catering to all customer segments in the Vietnamese market.

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