Not just selling cars, VinFast is on the verge of offering something several giants are striving for, and potentially bringing back billions of USD

On April 25, in Hanoi, Vingroup Group (HOSE: VIC) held its annual General Meeting of Shareholders (GMS) for 2024. At the GMS, Vingroup’s Board of Directors set a revenue target of VND 200,000 billion and a post-tax profit of VND 4,500 billion.

In addition to the plans and targets set, at the GMS, the Board of Directors and participating shareholders had a lively discussion, including one related to VinFast, the inspiring symbol for Vietnamese businesses when it was officially listed on the Nasdaq Stock LLC Stock Exchange in the US and became a publicly traded company with a global scope.

VinFast has delivered nearly 35,000 electric cars and over 72,000 electric motorbikes to the market in 2023, contributing significantly to the green transition trend.

At the meeting, Vingroup Chairman Pham Nhat Vuong affirmed that the future of Vingroup is VinFast and that it will never abandon VinFast. The head of Vingroup Group expressed his belief in the electric vehicle market of the future, stating that it is an inevitable trend. Notably, VinFast will have positive cash flow from 2026 and start making profits in various markets.

VinFast to Sell Carbon Credits

During the discussion, a shareholder representative asked the question: “VinFast’s main revenue currently comes from selling cars, but as I understand it, carbon credits can also generate income. VinFast has reduced a significant amount of carbon. Has VinFast filed any legal documents to issue carbon credits in the near future?“.

Regarding this matter, Mr. Pham Nhat Vuong said: “We have established a task force to promote the sale of carbon credits not only in Vietnam but also in other countries“.

If it is able to sell carbon credits in Vietnam and other markets around the world, it will bring significant benefits to VinFast in the future.

According to experts, even though carbon credits do not directly impact car buyers, they are considered important assets that the “big players” in the automotive industry need to consider. Electric vehicle manufacturers have a surplus of carbon credits from producing electric vehicles. They can sell these to other automakers to help them comply with emission regulations.

Carbon Credits – A Multi-Billion Dollar Opportunity for Electric Vehicle Manufacturers

In fact, before VinFast, many major automakers around the world have been selling carbon credits alongside their vehicle sales. The profits from carbon credit sales can amount to billions of dollars. A prime example is Tesla, owned by billionaire Elon Musk, which earned up to 1.79 billion USD from selling carbon credits in 2023. In fact, this was not the first time Tesla had profited from selling carbon credits.

During a time when “big players” like Honda, GM, and Ford faced many difficulties in developing electric vehicles, Tesla found a way to capitalize on the opportunity to increase sales and profits. As early as 2009, Tesla implemented a surprising strategy: selling carbon credits.

According to Automotive News, from 2009 to 2023, the total amount of money Tesla earned from selling carbon credits was close to 9 billion USD. This figure is a testament to the fact that this clever strategy has had a positive impact on Tesla’s business performance.

In fact, the US, the European Union (EU), and China also have similar regulations to carbon credit standards for automakers. This not only brings great opportunities for electric vehicle manufacturers in terms of the profits they can earn from selling carbon credits but also helps raise awareness about corporate production.

Moreover, as the world focuses on reducing carbon emissions and addressing climate change, experts predict that the demand for carbon credits will increase in the future.

Article references sources: Tesla, Automotive News