Vietnam’s VinFast, a Nasdaq-listed electric vehicle maker, announced on Tuesday that it has secured a commitment for financial support worth 85 trillion dong ($3.35 billion) from its founder, Pham Nhat Vuong, and its parent company, Vingroup.
Vingroup has committed to lending VinFast up to 35 trillion Vietnamese dong (approximately $1.4 billion) by the end of 2026. In addition, Pham Nhat Vuong has personally pledged an additional 50 trillion dong (around $2.1 billion) in support.
Furthermore, Vingroup plans to convert all existing loans, which amount to about 80 trillion dong ($3.3 billion), to VinFast Vietnam into preferred shares that are entitled to dividends.
This comprehensive support plan is intended to provide VinFast with the necessary financial resources to sustain operations, make investments, and fulfil other financial obligations, with the aim of reaching the break-even point and achieving balanced cash flow by the close of 2026, according to a statement.
Despite this backing, VinFast is committed to independently raising capital to meet its financial needs. The assistance from Vingroup and Pham will serve as a contingency, utilised only if these independent efforts fall short of expectations.
At a general meeting in April, Vuong—who owns 97.9% of VinFast shares both directly and indirectly—reaffirmed his commitment to investing further in the automotive unit.
The 35-trillion-dong loan will be sourced from Vingroup’s business operations, dividends from subsidiaries, and, if needed, strategic divestments of certain investments and subsidiaries at fair market value.
Meanwhile, Pham’s 50-trillion-dong personal investment will not adversely affect the interests of Vingroup or its shareholders, according to the announcement.
Since its inception in 2017 up until June this year, VinFast has received capital injections totalling $13.5 billion from Vingroup, its affiliates, and founder Vuong, according to a company filing in late October. The new commitments would boost total funding to nearly $17 billion, according to a Reuters report.
“Vingroup is unwavering in our commitment to a sustainable future. To realise our vision of smart, eco-friendly electric vehicles, Vingroup will continue to invest significantly in VinFast,” said Nguyen Viet Quang, Vice Chairman of the Board of Directors and CEO of Vingroup.
In October, VinFast announced plans to receive an investment from a consortium led by Abu Dhabi’s Emirates Driving Company (EDC). The investment, part of a memorandum of understanding, will focus on electric vehicles, driver training in Vietnam, and supporting Abu Dhabi’s industrial sector.
Although the investment value was not publicly disclosed, Vietnamese media outlet Thanh Nien reported that the consortium is expected to invest at least $1 billion in VinFast.
