At the annual general meeting of the Vingroup corporation (stock code: VIC), the issue that most concerned shareholders was the information surrounding VinFast, the electric car company within the corporation’s ecosystem. Shareholders expressed concerns about the cash flow of VinFast or Vingroup, the difficulties that VinFast is facing, and when VinFast will stop losing money.
Responding to each of the shareholders’ concerns about VinFast, Mr. Pham Nhat Vuong, Chairman of the Board of Directors of Vingroup, said that it is unfounded to doubt Vingroup’s cash flow and capabilities. According to him, many people have doubts because they only listen to rumors.
“The company has never been late in repaying a single dong to the bank, either in principal or interest. All financial plans are clearly set out and strictly implemented,” the billionaire affirmed.
During the meeting, the Chairman of Vingroup acknowledged that the market is facing many difficulties. However, the worst of the difficulties is over Looking at the sales figures, VinFast has become the car company with the largest sales volume in Vietnam for the first time. The company is moving forward with certainty.
Mr. Pham Nhat Vuong affirmed that building VinFast is not easy, otherwise it would not have been Vingroup’s turn. Many forces have joined together to fight against VinFast, and that is not without reason. This billionaire also affirmed that Vingroup will never give up on VinFast because it is not just a business story. VinFast is now a story of Vingroup’s responsibility.
“Last year I provided VinFast with USD 1 billion. I will soon arrange my assets and provide another USD 1 billion to the electric car company. I also hope that everyone will join hands to contribute,” billionaire Pham Nhat Vuong emphasized.
Billionaire Pham Nhat Vuong also said that if the whole society joins hands to build VinFast, the members of the corporation cannot shirk that responsibility.
In addition, the Chairman of Vingroup also added that building factories overseas brings enormous benefits to VinFast. For example, if it spends USD 2 billion to build a factory in the US, Vingroup can receive support of over USD 2 billion from policy and tax incentives. VinFast finds it difficult to compete with other brands because of high logistics costs and taxes; if it builds a factory in the US, it can reduce costs and create leverage to gain additional market share in the US.
“All 3 countries where VinFast plans to build factories provide significant support to the company. And we will also try to raise capital in those countries to operate the factories,” Mr. Pham Nhat Vuong confirmed.
This billionaire also said that VinFast’s localization rate has now reached 80% according to the government’s standards, and that if calculated in terms of component details, it has also reached over 50%. In the past, Vietnamese people were considered incapable of even making a screw, but now they are able to manufacture cars with a very high level of localization. This will also be an opportunity to develop Vietnam’s industrial sector.
