VinFast Joint Stock Company, a subsidiary of the Vietnamese conglomerate Vingroup Joint Stock Company and a manufacturer of automobiles, has received $2.5 billion in grants and loans to support its ongoing development and help it meet its goals for international expansion.
In a statement, Vingroup stated that its chairman, Pham Nhat Vuong, and the company intended to give non-refundable grants to VinFast totaling $1 billion and $500 million, respectively.
With a maximum term of five years, Vingroup may lend VinFast an additional $1 billion.
The Pham fund will be donated within the following year.
According to the statement, VinFast’s impressive growth on the international market and continued achievement of its production and business development goals led to the decision.
VinFast will have access to more resources to speed up its development and achieve its growth goals in the global market with additional financial support.
“The growth potential of VinFast has been demonstrated in the past five years,
“This is a pivotal period for VinFast to accelerate towards a solid competitive position in the world’s electric vehicle market,” said Nguyen Viet Quang, Chief Executive Officer of Vingroup.
He asserted that Vingroup, VinFast’s parent company, is supporting VinFast in order to help it develop further and secure its future.
He claimed that Vingroup’s additional capital contribution for the ground-breaking development of VinFast in the future is the grant and loan of $1.5 billion.
“This is also once-in-a-lifetime opportunity for the development of Vietnam’s industry. We call on everyone to support and build a world-class Vietnamese brand,” he added.
As a part of Vingroup, VinFast was founded in 2017 and, starting in 2022, transformed into a company solely focused on the design and production of electric vehicles (EVs).
One electric bus model, nine electric motorcycles, six EV models spanning all popular segments A to E, and nearly 3,000 EVs were exported to foreign markets by VinFast.
