According to information from DealStreetAsia, electric car manufacturer VinFast is seeking to attract Family Offices (private wealth management firms serving high-net-worth individuals) and the Alternative Assets sector (unique investment products such as artwork and wine, as opposed to traditional stocks or bonds).
According to documents filed with the Singapore Registrar of Companies and Accounting, VinFast is reaching out to potential investors through a partnership with FORCE Family Office, based in the United States. The agreement between the two parties aims to leverage “family offices, investors, ecosystem, and ultra-high net worth individuals (UHNWI)” to create a ready group of customers for VinFast.
FORCE will introduce VinFast to the Alternative Assets community and Family Offices through over 100 events and webinars each year. In the accompanying letter, FORCE states that successfully attracting Family Offices requires companies to build their brand and engage in direct conversations.
In a statement to DealStreetAsia, VinFast’s parent company Vingroup said that the collaboration with FORCE aims to encourage investment in the electric car manufacturer. Under the agreement, VinFast will issue 60,000 common shares as a service fee to FORCE. This amount represents less than 5% of the company’s current outstanding shares.
FORCE was founded in 2020. Their website states that they help Family Offices connect with each other as well as with private companies and the public for investment, research, education, philanthropy, and aim to build relationships that lead to investment collaborations.
“Direct investment into private companies and the public has grown significantly over the past 20 years, as the number of family offices has nearly increased tenfold and traditional investment returns have shown low profit rates,” FORCE said on their homepage.
VinFast recently announced that they will increase the free floating ratio from the current 2% to 10-20% by the end of this year. Besides the local factory and the $2 billion factory in the United States, VinFast plans to expand production facilities in the Asian market. They will invest at least $1.2 billion in Indonesia for car distribution and establish an electric car factory, while in India, the company also plans to invest $2 billion to build electric car and battery production plants.
