VinFast secures fresh capital and launches deliveries of the VF 5

Vietnamese electric car maker VinFast is securing up to $2.5 billion in fresh capital to fuel its global expansion. 1.5 billion dollars comes in the form of grants from parent company Vingroup and its chairman Pham Nhat Vuong. Another billion can be accessed by VinFast over a five-year period in the form of loans from Vingroup.

“The decision was reached due to VinFasts remarkable progress in the global market, as it continues to achieve its production and business development targets,” the company wrote in a press release. “With further financial support, VinFast will have access to more resources to boost its development and accelerate its growth objectives in the global market.”

According to a spokesperson, chairman Pham Nhat Vuong is also likely to put his equity into the carmaker’s expansion. “To build a national brand that can compete in the international market is particularly difficult, challenging, and even requires sacrificing immediate benefits,” the spokesperson said.

VinFast has exported nearly 3,000 electric cars to the US and Canada so far and plans to bring its electric cars to Europe this year, specifically Germany, France and the Netherlands.

Meanwhile, VinFast has started deliveries of its fourth model in Vietnam. With a base price of 458 million VND (equivalent to about 17,700 euros), the VF 5 Plus is the manufacturer’s most affordable model to date. However, the battery is not included in this price. For this, another 1.6 million VND (about 62 euros) are added monthly.

The electric SUV comes with a 37.23 kWh battery and a maximum torque of 135 Nm. According to the New European Driving Cycle (NEDC), the range is “more than 300 kilometres”. However, the NEDC is actually no longer used because the stated ranges are significantly higher than the real range of the vehicle.

The VF 5 was already available for reservation in December. According to the manufacturer, more than 3,000 reservations were received in just nine hours, of which 80 per cent were converted into pre-orders. This also means that the time from pre-order to delivery is only 4 months.

vingroup.net (capital investment), vingroup.net (VF 5)