Vingroup, Vietnam’s largest private conglomerate, and its Chairman, Pham Nhat Vuong, announced a significant financial commitment to VinFast, the Vietnamese Nasdaq-listed electric vehicle maker. Vingroup plans to lend VinFast up to 35 trillion Vietnamese dong ($1.4 billion) by the end of 2026.
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Vingroup will convert all existing loans, about 80 trillion dong ($3.3 billion), to VinFast Vietnam into dividend-entitled preferred shares.
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The support plan will provide VinFast with adequate financial resources to meet its operations, investments, and other obligations. The goal is to reach the break-even point and cash flow balance by the end of 2026. However, VinFast remains committed to raising capital to meet its financial needs. If these independent efforts fail to meet expectations, Vingroup and Mr. Vuong will assist.
Vingroup intends to relieve the electric vehicle maker’s short-term financial pressure by converting loans totaling approximately 80 trillion dongs into preferred equity shares of VinFast Vietnam. This move will allow Vingroup to retain its stake in VinFast through dividend rights and the ability to convert preferred shares into common shares of VinFast Vietnam Manufacturing and Trading Company or interests in VinFast Singapore.
The new loan of up to 35 trillion Vietnamese dongs will be funded by Vingroup business operations, dividends from subsidiaries, and, if necessary, the strategic divestment of certain investments and subsidiaries at fair market value.
Mr. Pham Nhat Vuong, VinFast’s CEO and largest shareholder, will personally sponsor 50 trillion Vietnamese dong. This personal commitment will not have an impact on Vingroup or its shareholders.
Mr. Nguyen Viet Quang, Vice Chairman of the Board of Directors and CEO of Vingroup, shared: “Vingroup is unwavering in our commitment to a sustainable future. This green vision guides every aspect of our operations. VinFast’s ascent to the top of Vietnam’s automotive market is a testament to our capabilities. This milestone propels us forward, fueling our ambition to accelerate growth. To realize our vision of smart, eco-friendly electric vehicles, Vingroup will continue to invest significantly in VinFast. Our goal is to solidify VinFast’s market leadership in Vietnam and contribute to the global shift towards electric mobility.”
A representative of Mr. Pham Nhat Vuong’s Office said: “With the passion to create a world-class Vietnamese electric car brand, Mr. Pham Nhat Vuong will allocate significant resources to propel VinFast’s advancement. The newly secured funding source provides VinFast with the necessary financial resources to achieve sustainable growth without relying on external capital. This strategic move enables VinFast to prioritize research and development, production, and business expansion.
About VinFast
VinFast – a member of Vingroup – envisioned to drive the movement of the global smart electric vehicle revolution. Established in 2017, VinFast owns a state-of-the-art automotive manufacturing complex with globally leading scalability that boasts up to 90% automation in Hai Phong, Vietnam.
Strongly committed to the mission for a sustainable future for everyone, VinFast constantly innovates to bring high-quality products, advanced smart services, seamless customer experiences, and pricing strategy for all to inspire global customers to jointly create a future of smart mobility and a sustainable planet.
