Vingroup’s billionaire founder gifts VinES to VinFast

October 12, 2023 | 11:53
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VinFast announced on October 11 that its billionaire founder, Pham Nhat Vuong, has transferred it 99.8 per cent of his stake in Vin Energy Solutions (VinES).
Vingroup’s billionaire founder gifts VinES to VinFast

This merger is aimed at positioning VinFast at the forefront of battery technology, streamlining resources to boost the research and development of batteries for its electric vehicle range.

"This pivotal integration ensures VinFast's autonomy over battery technology and strengthens our production chain," a company insider commented.

VinES, a part of the expansive Vingroup ecosystem, had an authorised capital investment of approximately VND6.5 trillion (around $274 million). The company specialises in the research, development, and production of high-quality lithium-ion batteries. They are an integral part of EVs and also find applications in energy storage systems and other technologies.

Le Thi Thu Thuy, vice-chairwoman of Vingroup and global CEO of VinFast stated, "Merging VinES into VinFast empowers us to be proactive and optimises our supply chain for EVs, leading to cost efficiencies and the heightened technological prowess of VinFast models."

Post-merger, VinFast is set to inherit all of VinES's assets, including patents related to battery cells and packs, factories, technological know-how, partner relations, and existing supplier contracts.

This is not the first time Vuong has showcased his commitment to VinFast. In April, the Vietnamese billionaire magnate personally pledged a donation of $1 billion from his assets to VinFast.

Alongside this, Vingroup, the company he founded, announced a non-refundable sponsorship of $500 million and an additional loan of $1 billion, with a maximum term of five years. These significant financial injections underscore the group's ambitious goal to elevate VinFast on the global stage, marking its ascendancy in the competitive EV segment.

As the electric vehicle market continues its meteoric rise, VinFast's strategic moves and backing from Vingroup highlight Vietnam's drive to become a significant player in this evolving sector.

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By Nhat Minh

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