Mr. Pham Nhat Vuong donated a battery company worth 6,500 billion VND to VinFast.

VinFast will merge with VinES - a battery manufacturer - after the electric vehicle company received 99.8% of shares from Mr. Pham Nhat Vuong.

Mr. Pham Nhat Vuong, Chairman of the Board of Directors of Vingroup Corporation (VIC), has just announced the donation of 99.8% of shares of VinES Energy Solutions Company to VinFast. Accordingly, VinES will be merged into the electric car manufacturer VinFast to proactively use technology and focus resources on strengthening research and development of batteries for electric vehicles.

VinES was established in August 2021, with an initial charter capital of VND 1,000 billion, with the goal of researching and producing Vingroup's own technologies and battery types, instead of just importing components and packaging. At the end of 2021, the company increased its capital to VND 2,700 billion and by the end of July 2023, it had further increased its charter capital to VND 6,500 billion.

VinES operates in the field of research, development and production of high-quality lithium-ion batteries for electric vehicles, energy storage systems and other applications. In addition, VinES is also cooperating with battery technology partners around the world to become a comprehensive energy solution provider.

After the merger, VinFast will inherit all battery cell patents, battery packs, factories, technology, partnerships, as well as contracts with suppliers of VinES.

"The merger of VinES into VinFast helps us take the initiative in battery technology and battery supply for electric vehicles, optimize costs and increase technology content for VinFast vehicles," said Ms. Le Thi Thu Thuy, General Director of VinFast Global.

Previously, at the end of April 2023, Mr. Pham Nhat Vuong announced a donation of 1 billion USD to VinFast from his personal assets. Along with Mr. Vuong, Vingroup Corporation also announced a non-refundable grant of 500 million USD and a loan of 1 billion USD for a maximum period of 5 years.

By the end of September, Vingroup had disbursed a loan of VND23,000 billion and in September, Chairman Pham Nhat Vuong also donated VND7,000 billion to VinFast.

According to VinFast, in the next 6 months, the company is expected to receive an additional 12,000 billion VND in non-refundable funding from Vingroup. In addition, two shareholders controlled by Vingroup Chairman Pham Nhat Vuong, Asian Star Trading & Investment and Vietnam Investment Group (VIG), will donate to VinFast the entire net proceeds from the sale of 46 million VFS shares, according to information registered in the F-1 Prospectus recently filed with the US Securities and Exchange Commission (SEC).

The total amount of money VinFast expects to receive in the next quarters could reach VND29,000 billion.

According to VinFast's listing prospectus, shareholders related to Vingroup Chairman Pham Nhat Vuong control nearly 2.3 billion VFS shares, equivalent to more than 99%. Of which, Vingroup is the largest shareholder holding 51% of VinFast's capital.

Minh Son

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