Vietnamese conglomerate Vingroup Joint Stock Company car maker subsidiary VinFast Joint Stock Company has received $2.5 billion in grants and loans to facilitate its continuing development enabling it to achieve its global growth goals.

Vingroup said in a statement that Vingroup’s Chairman Pham Nhat Vuong and Vingroup intended to contribute $1 billion and $500 million respectively by way of non-refundable grants to VinFast.

Vingroup may loan up to a further $1 billion to VinFast with a maximum tenor of five years.

Meanwhile, the fund from Pham will be donated within the next year.

According to the statement, the decision was reached due to VinFast’s remarkable progress in the global market, as it continues to achieve its production and business development targets.

With further financial support, VinFast will have access to more resources to boost its development and accelerate its growth objectives in the global market.

“The growth potential of VinFast has been demonstrated in the past five years,

“This is a pivotal period for VinFast to accelerate towards a solid competitive position in the world’s electric vehicle market,” said Nguyen Viet Quang, Chief Executive Officer of Vingroup.

As the parent corporation of VinFast, he said Vingroup is providing support to enable VinFast to continue its development and secure its future.

He said the grant and loan of $1.5 billion is Vingroup’s additional capital contribution for the breakthrough development of VinFast in the future.

“This is also once-in-a-lifetime opportunity for the development of Vietnam’s industry. We call on everyone to support and build a world-class Vietnamese brand,” he added.

A representative of Vingroup Chairman Pham Nhat Vuong, said to build a national brand that can compete in the international market is particularly difficult, challenging, and even requires sacrificing immediate benefits.

“Pham plans to donate some of his personal assets to energize VinFast during the pivotal acceleration period to create a mark of Vietnam in the world’s electric vehicle market,

“The success of VinFast will promote the development of Vietnam’s industry and technology while actively contributing to the global green transformation,” the representative said.

VinFast, a member of Vingroup, was established in 2017 and became a pure electric vehicle (EV) company specialized in designing and manufacturing electric cars and motorbikes
from 2022.

VinFast has introduced six EV models across all popular segments, A to E, one electric bus model and nine electric motorbikes, and exported nearly 3,000 electric cars to foreign markets.

In Vietnam, VinFast has established itself as a popular national brand. Internationally, the firm is steadily making progress into new markets.

Following the export of its second batch of cars to the United States and Canada in April 2023, VinFast’s EVs are anticipated to be launched in France, Germany, and the Netherlands later this year.

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