“VinFast Secures $3.5 Billion in Funding from Vingroup and Mr. Pham Nhat Vuong.”

From now until the end of 2026, Vingroup plans to lend VinFast a maximum of VND 35,000 billion, and Mr. Pham Nhat Vuong has also committed to sponsoring VinFast with VND 50,000 billion. At the same time, 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 plan aims to provide VinFast with sufficient resources and additional reserves to finance its business operations, essential investments, and fulfill other obligations of the company. The goal is for VinFast to reach a break-even point and self-balance its 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 use the support from Vingroup and Mr. Pham Nhat Vuong if its capital mobilization falls short of the planned expectations.

Currently, VinFast has completed its basic investment phase, operating a car manufacturing plant with a maximum capacity of 300,000 vehicles per year in Cat Hai – Hai Phong; researching, developing, and refining its product line; and transitioning from a direct-to-consumer distribution model to an agency-based model. The company is now in the acceleration phase, boosting sales across all markets and optimizing its cost structure.

VinFast has just become the best-selling automotive brand in the Vietnamese market and has shown promising results in the global market, affirming its potential and future development prospects.

On Vingroup’s side, the support agreement is based on a careful analysis of the balance of cash flow and profit to ensure a balance of interests and maintain Vingroup’s indices at a safe level. When VinFast reaches its break-even point and achieves financial autonomy, and its business operations are favorable, Vingroup will benefit from these investments.

Converting the existing loans of approximately VND 80,000 billion into preferred shares of VinFast Vietnam will help VinFast alleviate short-term financial pressure while preserving Vingroup’s interests through dividend entitlements and the right to convert them into common shares of the VinFast Production and Trading Company or benefits 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 subsidiary companies, investments, and may consider divesting a portion of its capital contributions in investments or subsidiary companies if necessary, ensuring a reasonable price.

Regarding Mr. Pham Nhat Vuong – in his capacity as the CEO and major shareholder of VinFast, the sponsorship of VND 50,000 billion will be arranged from his personal assets, without affecting the interests of Vingroup and VinFast shareholders.

Mr. Pham Nhat Vuong’s office representative stated that the recently added support ensures sustainable and robust financial development for VinFast.

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

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

Mr. Nguyen Viet Quang, Vice Chairman of the Board of Directors and CEO of Vingroup, said, “Vingroup is steadfast in its mission to create a green future, guiding all the group’s production and business activities. VinFast’s rise to the top of the Vietnamese market is a crucial milestone, attesting to its capabilities and providing momentum for the coming period. Therefore, Vingroup continues to invest significantly in VinFast to realize the vision of developing smart, environmentally friendly electric vehicle lines, supporting VinFast in maintaining its market share in Vietnam, and driving the global electric mobility revolution.”

A representative from Mr. Pham Nhat Vuong’s office stated, “With his passion for building a world-class Vietnamese electric car brand, Mr. Pham Nhat Vuong will dedicate resources to focus on promoting VinFast’s development. The recently added support ensures sustainable and robust financial development for VinFast, even without additional external capital mobilization. This allows VinFast to concentrate solely on research, development, production, and business operations.”

Thai Son (Tuoitrethudo)