VinGroup, one of Vietnam’s biggest conglomerates, has committed to lending its electric vehicle making subsidiary VinFast VND 35 trillion or US$1.38 billion, with the group’s CEO Pham Nhat Vuong committing a further VND 50 trillion or US$1.97 billion, between now and 2026.
Thanh Nien has reported that this is a back-up option to be utilised if the company cannot find capital sources elsewhere. It also notes that existing debt owed to VinGroup will be converted into shares of VinFast.
Nguoi Quan Sat, places this development in the context of VinFast becoming the “best-selling car brand in the Vietnamese market” alongside “achieving many significant successes in the international market”. That said, on the former, the bulk of vehicles VinFast has sold in Vietnam have been to its affiliate taxi company Xanh GSM. On the latter, it’s not clear what these successes are with VinFast’s North Carolina factory put on hold on the back of a poor reception in the US.
Dan Tri, however, whether intentional or not, raises questions about the commitment from Vuong to commit his “own money” (Dan Tri’s inverted commas) on account of 63 percent of VinGroup being owned by Vuong and affiliated shareholders. The publication estimates this to be worth about VND 97.3 trillion or US$3.84 billion with Vuong’s personal share worth VND 28 trillion or US$1.1 billion.