VinFast has emerged as the best-selling automotive brand in Vietnam and has shown promising results in the global market, solidifying its potential and future growth prospects.
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The support plan aims to provide VinFast with sufficient resources and additional financial backup to fund its business operations, essential investments, and fulfill other corporate obligations. The goal is for the company to reach a break-even point by the end of 2026 and achieve self-balancing cash flow. Meanwhile, VinFast will continue to actively pursue independent capital-raising options to meet its capital needs and will only utilize support from Vingroup and Mr. Pham Nhat Vuong if its capital-raising efforts fall short of the planned expectations.
Currently, VinFast has completed its initial investment phase by operating a car manufacturing plant with a maximum capacity of 300,000 units per year in Cat Hai, Hai Phong; conducting research, development, and refinement of its product line; and transitioning from a direct-to-consumer distribution model to an agency-based model. The company is now in an acceleration phase, aggressively pushing sales across all markets and optimizing its cost structure.
On Vingroup’s side, the support agreement is based on a thorough analysis of cash flow and profit balance to ensure a harmonious relationship between the two entities while maintaining safe indicators for Vingroup. Once VinFast reaches its break-even point and achieves financial autonomy with prosperous business operations, Vingroup will reap the benefits of these investments.
Converting approximately 80,000 billion VND of loans provided to VinFast into preferred capital of VinFast Vietnam will alleviate short-term financial pressure while preserving Vingroup’s interests through dividend distribution and the right to convert into common shares of the VinFast Production and Trading Company or benefits in VinFast Singapore (VFS). The new loan of up to 35,000 billion VND will be arranged from the group’s business operations, dividends from subsidiary companies, investments, and, if necessary, a partial divestment of capital contributions at investments or subsidiary companies, ensuring reasonable pricing.
Regarding Mr. Pham Nhat Vuong – in his capacity as CEO and major shareholder of VinFast, the 50,000 billion VND funding is arranged from personal assets, with no impact on the interests of Vingroup and VinFast shareholders.
A representative from Mr. Pham Nhat Vuong‘s office stated that the recently added support ensures VinFast‘s sustainable and robust development.
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This support decision comes at a time when VinFast has become the top-selling automotive brand in Vietnam and has demonstrated promising results in the global market, reinforcing its potential and future growth prospects.
During the first ten months of the year, VinFast delivered over 51,000 electric vehicles of various types in the Vietnamese market, officially surpassing foreign automotive brands to claim the largest market share. Notably, VinFast is also the first electric vehicle manufacturer to outpace its gasoline-powered competitors just over two years after transitioning to an all-electric lineup. In the international market, VinFast has made breakthrough strides, continuing to expand its business in the US, Canada, and Europe while rapidly entering new markets such as the Middle East, Indonesia, the Philippines, and India.
Mr. Nguyen Viet Quang, Vice Chairman of the Board of Directors and CEO of Vingroup, shared: “Vingroup remains steadfast in its mission to create a green future, guiding all the group’s production and business activities. VinFast‘s rise to the number one position in the Vietnamese market is a significant milestone, validating its capabilities and setting the stage for acceleration in the coming years. Therefore, Vingroup continues to invest heavily in VinFast to realize its vision of developing smart and environmentally friendly electric vehicle lines, supporting VinFast in maintaining its market share in Vietnam and driving the global electric mobility revolution.”
A representative from Mr. Pham Nhat Vuong‘s office commented: “With his passion for building a world-class Vietnamese electric vehicle brand, Mr. Pham Nhat Vuong will dedicate resources to propel VinFast‘s development. The recently added support ensures VinFast‘s sustainable and robust financial foundation, even without additional external capital, allowing VinFast to focus solely on research, development, manufacturing, and business operations.”
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