Chairman of Vingroup highlights VinFast's path to profitability

May 19, 2023 | 10:38
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During Vingroup’s annual shareholders' meeting on May 17, chairman of Vingroup Pham Nhat Vuong provided insights into the company's strategic roadmap and its journey towards profitability.
Chairman of Vingroup highlights VinFast's path to profitability
Pham Nhat Vuong, chairman of Vingroup

VinFast achieved a groundbreaking milestone by entering the US stock market through a business merger with Black Spade on May 12, propelling the company onto the global market.

With half of the listing process completed, VinFast is nearing the transformative union that will significantly enhance its global presence.

Vuong addressed concerns about profitability and shared an optimistic outlook based on their strategic plan. Despite initially expecting losses, Vuong anticipates that VinFast will reach the break-even point in earnings before interest, taxes, depreciation, and amortisation by 2024-2025, provided its business operations align with the plan.

With a valuation of $23 billion, Vuong is confident in reclaiming the $8 billion invested by Vingroup and its shareholders, but it will take time.

Vuong emphasised that VinFast's mission goes beyond commerce, as it is guided by the principles that shape its visionary journey.

“As a leading Vietnamese conglomerate, Vingroup recognises its responsibility to contribute to the country's development. VinFast aims to elevate the stature of the Vietnamese brand globally and set itself apart,” he said.

In addition, recognising the opportunities presented by the green revolution, VinFast ventured into the electric vehicle (EV) industry. Vuong expects VinFast to break even by the end of 2024, with profitability anticipated in 2025. The company's valuation is projected to surpass $23 billion, reflecting its remarkable achievements in the EV market.

"Entering the EV industry was not an immediate decision for VinFast due to the limited interest and acceptance of EVs five years ago. But, a successful initial public offering on the US stock market would establish VinFast as the world's third-largest pure EV manufacturer, underscoring its impressive accomplishments," he added.

Looking ahead, VinFast plans to introduce an extraordinary line up of vehicles in August, catering to diverse consumer needs across all segments. Market dynamics, such as the growing demand for SUVs, will influence the introduction of new models.

"We are currently working on launching an ultra-compact and affordable car by the end of 2024. It will be both aesthetically appealing and cost-effective, and we will announce it in a few weeks. In our pursuit of becoming a leading global automotive company, we won't overlook any product that meets market demand," highlighted Vuong.

VinFast revs up for $23 billion SPAC merger and US stock market entry VinFast revs up for $23 billion SPAC merger and US stock market entry

VinFast Auto Pte. Ltd. (VinFast), a manufacturer of electric vehicles (EVs) from the Vietnamese conglomerate Vingroup, and Black Spade Acquisition Co. (Black Spade) announced a momentous business merger agreement on May 12.

By Trung Duong

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