VinFast receives $3.5 billion funding from Vingroup and Pham Nhat Vuong

Vingroup plans to lend VinFast up to VND35 trillion ($1.4 billion) by the end of 2026. Additionally, Vuong has personally pledged VND50 trillion ($2.1 billion) in sponsorship. In a separate move, Vingroup will convert all existing loans, about VND80 trillion ($3.3 billion), to VinFast Vietnam into dividend-entitled preferred shares.

The support plan is designed to provide VinFast with sufficient financial resources to fund operations, investments, and other obligations. The goal is to achieve the break-even point and cash flow balance by the end of 2026. However, VinFast remains committed to independently raising capital to meet its financial needs. The support from Vingroup and chairman Vuong will be utilised only if these independent efforts do not reach expectations.

VinFast has concluded its initial investment phase, which includes the operation of a 300,000-vehicle-per-year manufacturing plant in Cat Hai, Haiphong. The company has also completed research and development of its product line, and is shifting its distribution model from direct-to-consumer to a dealership model. VinFast is now in its growth phase, focused on boosting sales across all markets and optimising its cost structure.

Vingroup's support agreement is based on a careful assessment of the potential impact on its cash flow and profitability. The goal is to maintain a balance between supporting VinFast and sustaining Vingroup's own financial health. Once VinFast achieves profitability and financial independence, Vingroup expects to benefit from its investments.

By converting loans to VinFast totalling about $3.3 billion into preferred equity shares of VinFast Vietnam, Vingroup aims to alleviate short-term financial pressure on the electric vehicle maker. This will allow Vingroup to maintain its stake in VinFast through dividend rights and the option to convert preferred shares into common shares in VinFast Vietnam Manufacturing and Trading Company or interests in VinFast Singapore.

The new loan of up to $1.4 billion will be funded through Vingroup’s business activities, dividends from subsidiaries, and, if necessary, strategic divestment from certain investments and subsidiaries at a fair market value.

Pham Nhat Vuong, as VinFast's CEO and a major shareholder, will personally sponsor $2.1 billion. This personal commitment will not impact the interests of Vingroup or its shareholders.

Vingroup establishes $150 million venture capital fund On October 28, Vingroup announced the launch of VinVentures, a capital fund managing assets worth $150 million, dedicated to supporting technology startups with transformative potential.

VinFast to secure $1 billion funding led by Emirates Driving Company VinFast Auto is expected to secure at least $1 billion in investments led by Emirates Driving Company (EDC), Abu Dhabi’s leading driver training and road safety institute, according to Bloomberg.

VinFast EV sales hit over 51,000 in Vietnam VinFast announced on November 12 it delivered more than 11,000 electric vehicles (EVs) to domestic customers in October, bringing its total sales since the beginning of the year to over 51,000.