Vinfast To Receive $2.5 Billion Infusion From Vingroup's Founder

Pham Nhat Vuong, Vietnam's richest man, and Vingroup JSC will invest an extra $2.5 billion in the company's electric-car arm VinFast ahead of its anticipated IPO in the United States.

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According to a Vingroup statement, Vuong, the creator of Vingroup, who indicated in 2019 that he would devote $2 billion of his wealth to VinFast, will personally provide $1 billion to VinFast within the next year. VinFast will get a $1 billion loan from the corporation over five years. Vingroup will also contribute $500 million to VinFast.

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"The additional $2.5 billion in funding and loans will create more resources to promote and facilitate VinFast's development, allowing it to quickly achieve its global growth goals," Vingroup said in a statement. 

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Tesla's Vietnam rival considers a US IPO in the second quarter.

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According to Trade Algo, VinFast is exploring a US IPO as soon as the second quarter of this year, citing people familiar with the subject.

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VinFast EV production in the United States is not expected to begin until 2025.

The funding injection comes as the Vietnamese manufacturer ramps up its efforts to break into international markets. 

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VinFast, which aims to construct a facility in North Carolina, transported its second batch of EVs to North America on April 16 and expects US deliveries to begin in May and Canadian deliveries in June. 

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It plans to ship its first automobiles to Europe in July.

The arrival of VinFast's second North American delivery, and the first to Canada, comes as the fledgling carmaker attempts to gain a presence in extremely competitive international markets.

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Vuong, whose net worth is estimated to be $4.1 billion, is the head of Vingroup, a conglomerate with interests in real estate, amusement parks, and a university. According to VinFast's pre-IPO filing, Vingroup, its affiliates, and external lenders had invested about $8.2 billion in VinFast as of the end of last year. 

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According to statistics, Vuong owns 18.12% of Vingroup directly. Vietnam Investment Group, or VIG, which Vuong owns around 92% of, owns 33% of Vingroup. 

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Vuong doesn’t have direct ownership in VinFast, but according to the filing, Vingroup controlled 51.5% of the firm as of September 30, VIG owned 33.5%, and Asian Star Trading & Investment Ltd. had a 15% holding. Vuong owns the bulk of these shares.

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