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VinFast to receive $3.35 billion in funding

VinFast Electric Vehicle business

VinFast announced a funding injection of 85 trillion dong ($3.35 billion) from its founder Pham Nhat Vuong and parent company Vingroup.

About 50 trillion dong ($1.97 billion) is expected from Vuong, while Vingroup will contribute up to $1.38 billion through various financial mechanisms.

Vingroup, Vietnam’s Nasdaq-listed electric vehicle (EV) company, will convert all existing loans to VinFast Vietnam into preferred shares with dividend entitlements.

VinFast has received a total of $13.5 billion in investments since its 2017 launch. The new round would raise this to nearly $17 billion.

The company, targeting North America as its main market, is facing challenges in global sales, reporting a net loss of $773.5 million in Q2 2023, up 27 percent from Q1.

VinFast has paused its $2 billion North Carolina plant project until 2028 due to market uncertainties.

The company is bracing for potential U.S. policy shifts that could affect EV tariffs and incentives under the leadership of President Donald Trump.

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