VinFast announces major new funding and a potential fleet deal in Mexico

VinFast has secured funding from Vingroup and Pham Nhat Vuong to build financial reserves and accelerate growth. The combined funding pot is worth about $3.5 billion, which breaks down as follows: Vingroup plans to lend VinFast up to 35 trillion Vietnamese dong ($1.4 billion) by the end of 2026. Mr. Vuong personally pledged 50 trillion dong ($2.1 billion) in sponsorship. Additionally, Vingroup has announced that it will convert all existing loans, about 80 trillion dong ($3.3 billion), to VinFast Vietnam into dividend-entitled preferred shares. The plan here is to reach the break-even point and cash flow balance by the end of 2026. However, VinFast also writes that the company remains committed to independently raising capital to meet its financial needs. “The support from Vingroup and Mr. Vuong will be utilized only if these independent efforts do not reach the expectation.”

“With the passion to create a world-class Vietnamese electric car brand, Mr. Pham Nhat Vuong will allocate significant resources to propel VinFast’s advancement,” said a spokesperson for Pham Nhat Vuong, adding: “The newly secured funding source provides VinFast with the necessary financial resources to achieve sustainable growth without relying on external capital. This strategic move enables VinFast to prioritize research and development, production, and business expansion.”

In addition to the new funding from its home market, the Vietnamese electric car manufacturer is to receive over one billion US dollars from a group of investors led by the Emirates Driving Company (EDC) from Abu Dhabi. VinFast confirmed a corresponding letter of intent in a press release but did not specify the amount of the potential investment. A Bloomberg report, citing an insider, states that the amount is said to be at least one billion US dollars.

Specifically, Vingroup signed MOUs with three partners: AD Ports Group, NMDC, and Benya Technologies, while VinFast signed an MoU with Emirates Driving Company (EDC). The partnerships will focus on four strategic areas: Maritime logistics, sustainable coastal land development, digital transformation as well as a partnership with EDC focused on driver training in Vietnam, and investment to support Abu Dhabi’s industrial sector.

Le Thi Thu Thuy, Vice Chairwoman of Vingroup, said: “Our partnerships with strategic Middle Eastern partners will open major opportunities for Vingroup and VinFast to promote technology, infrastructure, and green economy development in Vietnam, while building a solid foundation for international expansion.”

Finally, VinFast has signed another Memorandum of Understanding in Mexico. The still non-binding agreement with the Union of Drivers and Related Workers of Durango, a member of the Confederation of Mexico Workers (CTM), envisages the potential purchase of 3,000 VF 5 electric cars and 300 electric buses for operation in Mexico.

Furthermore, VinFast, its charging infrastructure subsidiary V-Green and CTM will “collaborate in studying, setting up, installing, and/or operating charging infrastructure for electric vehicles and electric buses in Durango,” in order to set up an extensive charging network for both personal and public transport vehicles.

“With our high-quality electric vehicles and our affiliates’ s expertise in taxi operation and charging infrastructure, we are confident in our ability to support the State of Durango in realizing their vision, creating a lasting impact on the state and the broader Mexican landscape,” said Pham Thuy Linh, Deputy CEO at VinFast.

thailand-business-news.com, reuters.com, bnnbloomberg.ca, vinfastauto.us, media-outreach.com (Mexico)