Billionaire Pham Nhat Vuong has sponsored VinFast with over 3.2 trillion VND.

Mr. Pham Nhat Vuong at the Vingroup shareholders' meeting in April this year - Photo: LINH NGUYEN

Vingroup Corporation (stock code: VIC) has just announced its audited semi-annual financial report for 2024.

In the section on key transactions with related parties, the report notes a financing grant by Mr. Pham Nhat Vuong - Chairman of the Board of Directors of Vingroup - to a subsidiary company worth VND 3,277 billion in the first half of 2024.

The funding for VinFast , a subsidiary of Vingroup, was previously announced by Mr. Vuong at the shareholders' meeting held in April of this year.

At that time, Mr. Vuong said he would arrange his personal assets to finance VinFast with approximately $1 billion. The billionaire's goal was to focus his efforts on building VinFast into a top global brand.

"VinFast is the mission, honor, and future of Vingroup, so we will never give up on VinFast," Mr. Vuong affirmed to shareholders.

While acknowledging the difficulties in developing electric vehicles, Mr. Vuong also stated that doubts about VinFast's capabilities or cash flow are unfounded. "To date, we haven't been late in paying a single cent of interest to the bank, let alone the principal," Mr. Vuong said.

Previously, some shareholders expressed concerns about how long the group's resources could sustain VinFast given the prolonged losses of this automotive brand.

Returning to this year's semi-annual financial report, in addition to the aforementioned funding, the report notes that Mr. Vuong transferred shares in a subsidiary company worth over 1,820 billion VND.

Regarding business performance, the report shows that Vingroup's total revenue in the first half of this year reached over 64,000 billion VND.

The largest share of revenue still comes from the real estate transfer sector with over 26,331 billion VND, followed by manufacturing and related activities with over 14,056 billion VND.

Because operating costs remained significantly higher than revenue, VinFast's manufacturing segment continued to incur losses. However, overall, Vingroup's consolidated after-tax profit still reached VND 2,053 billion.

Source: https://tuoitre.vn/ti-phu-pham-nhat-vuong-tai-tro-vinfast-hon-3-200-ti-dong-20240830171405252.htm