VinFast seeks $250 million loan from Indonesian banks for Subang Assembly plant

The EV company is considering borrowing in either US dollars or local currency.

This move aims to enhance VinFast's competitiveness against other global EV manufacturers, particularly in an increasingly fierce market driven by a price war.

Since launching its first model five years ago, VinFast has continuously received financial backing from Vietnam's richest man, billionaire Pham Nhat Vuong. As Vuong stated in a recent interview, he will support the company "until I run out of money."

In an interview in June, Vuong said that VinFast was not just a business venture, but also a project of dedication.

"VinFast will soon reach the break-even point and become self-sufficient," he said.

Despite only beginning car production a little over five years ago, VinFast has now entered the US market and is competing with major corporations like Tesla and Hyundai. The company is also making inroads into markets such as India and Indonesia.

Vuong also expressed his confidence in steering VinFast through challenges, even as global giants like Toyota and Volkswagen face difficulties.

"We are confident in our ability to navigate and overcome these challenges," he said.

In a related development, VinFast informed the US Securities and Exchange Commission (SEC) on June 14 that it has decided to expedite the establishment of manufacturing facilities in key markets to leverage attractive government incentives.

Specifically, in India, VinFast plans to commence production at its Thoothukudi, Tamil Nadu facility in the first half of 2025. In Indonesia, VinFast aims to break ground on its manufacturing facility within the next two months and start production by the end of 2025.

Each facility in India and Indonesia is projected to have an initial annual capacity of approximately 50,000 EVs for phase one, with the potential to increase up to 300,000 vehicles annually, depending on market demand.

Currently, the global EV market is experiencing a fierce price war.

Ken Foong, an analyst at Bloomberg Intelligence, noted that VinFast faces significant risks due to competition in the US market as a new entrant.

"They will need to build their brand and endure intense competition. This is not easy in the US and will require a lot of time and money," Foong said.

ADB greenlights $80 million loan package for LPBank to finance woman-owned businesses The Asian Development Bank (ADB) and Lien Viet Post Joint Stock Commercial Bank (LPBank) on June 12 signed a financing package of up to $80 million to expand access to finance for a women-owned small and medium-sized enterprises (WSMEs) project in Vietnam.

Norfund grants $30 million convertible loan to SeABank The Norwegian Investment Fund for Developing Countries (Norfund) on June 19 committed $30 million to Hanoi-headquartered SeABank (HSX: SSB) through a convertible loan, which can be converted into SeABank common shares within four years.