Vingroup will continue to provide necessary financial support for VinFast to operate

Bloomberg recently quoted VinFast’s global CEO as saying that billionaire Pham Nhat Vuong has no plans to invest personal money in this electric car company.

Mr. Vuong currently has a net worth of 4.1 billion USD and is the Chairman of Vingroup – a conglomerate operating in many fields including real estate, amusement parks and education. VinFast was founded in 2017 by Mr. Vuong, and by September 2022, the owners and lenders of this electric vehicle manufacturer had invested about $7.5 billion to finance operating and maintenance costs. capital expenditures.

“Currently, Mr. Vuong has no plans to invest his personal money in VinFast,” CEO Le Thi Thu Thuy told Bloomberg.

VinFast lost $1.3 billion in 2021 and lost $1.5 billion in the nine months to September 30, according to filings with the SEC ahead of its planned IPO. The filing also said the company intends to continue to report operating and net losses in the short term.

Also in the filing, VinFast said that Vingroup informed Vingroup that “Vingroup is able and will continue to provide the necessary financial support to meet our needs to continue operating”. The filing also says that VinFast will “require a substantial amount of additional capital,” and will be supplemented through loans and equity as well as stakeholder funding.

VinFast embarked on a plan to build their North Carolina factory in the US last September.

Ms. Thuy said that the factory “has been basically cleared” and that VinFast is “going to the final stages of receiving a construction permit”. Ms. Thuy added that VinFast is still on schedule to start trial production in North Carolina in 2024.

Source: Bloomberg