Accordingly, from now until the end of 2026, Vingroup plans to lend VinFast a maximum of VND35,000 billion, and Mr. Pham Nhat Vuong commits to sponsor VinFast VND50,000 billion. At the same time, Vingroup will invest more in VinFast Vietnam by converting the entire existing loan of about VND80,000 billion into dividend-entitled preferred shares.

The support plan aims to help VinFast have enough resources and additional reserves to finance business operations, essential investments and fulfill other obligations of the company, aiming to reach the break-even point and balance its cash flow by the end of 2026. At the same time, VinFast will continue to actively and independently deploy capital mobilization plans for its own capital needs and only use the support of Vingroup and Mr. Pham Nhat Vuong if capital mobilization does not meet the expected plan.

Currently, VinFast has completed the basic investment phase with the operation of the automobile manufacturing plant with a maximum capacity of up to 300,000 vehicles/year in Cat Hai - Hai Phong ; research, development and completion of the product range; shifting the distribution model from direct to consumers to a distribution model through dealers. The company is in the acceleration phase, boosting sales in all markets, optimizing cost structure.

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VinFast has just become the number 1 selling car brand in the Vietnamese market and has achieved positive results in the global market, affirming its potential and development prospects in the future. Photo: VinFast

On Vingroup's side, the support agreement is based on a thorough analysis of the impact on cash flow and profits to balance interests and ensure that Vingroup's indicators remain at a safe level. When VinFast reaches break-even point and is financially autonomous and has favorable business operations, Vingroup will benefit from these investments.

In particular, converting the loans of about VND80,000 billion to VinFast Vietnam's preferred equity capital will help VinFast reduce short-term financial pressure while still preserving Vingroup's interests through dividends and conversion rights into common shares of VinFast Vietnam Manufacturing and Trading Company or interests in VinFast Singapore (VFS). The new loan of up to VND35,000 billion is arranged from the Group's business activities, dividends from subsidiaries, investments and can consider divesting part of the capital contribution in investments and subsidiaries if necessary and guaranteed at a reasonable price.

As for Mr. Pham Nhat Vuong, as CEO and major shareholder of VinFast, the VND50,000 billion sponsorship was arranged from personal assets, not affecting the interests of Vingroup and VinFast shareholders.

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A representative of Mr. Pham Nhat Vuong's Office said that the newly added support source has ensured financial resources for VinFast to develop sustainably and strongly. Photo: Vingroup

The above support decision was made in the context that VinFast has just become the number 1 best-selling car brand in the Vietnamese market and has had positive results in the global market, affirming its potential and development prospects in the future.

Accordingly, in the first 10 months of the year, VinFast has delivered more than 51,000 electric cars of all kinds to the Vietnamese market, officially surpassing foreign car manufacturers to capture the largest market share. Notably, VinFast is also the first electric car manufacturer to surpass rival gasoline car manufacturers after just over 2 years of switching to pure electric. In the international market, VinFast has made breakthroughs, continuing to boost business in the US, Canada, Europe and beginning to rapidly penetrate new markets such as the Middle East, Indonesia, the Philippines, India, etc.

Mr. Nguyen Viet Quang - Vice Chairman of the Board of Directors and General Director of Vingroup Corporation said: "Vingroup is steadfast in its mission of creating a green future, considering this as a guideline for all production and business activities of the Group. VinFast's rise to No. 1 in the Vietnamese market is an important milestone, validating VinFast's capacity and creating momentum for acceleration in the coming time. Therefore, Vingroup continues to invest heavily in VinFast to realize the vision of developing smart, environmentally friendly electric car product lines, supporting VinFast to maintain its market share in Vietnam and promoting the global electric mobility revolution."

A representative of Mr. Pham Nhat Vuong's Office said: "With the passion to build a world-class Vietnamese electric car brand, Mr. Pham Nhat Vuong will devote resources to focus on promoting VinFast's development. The newly added support source has ensured financial resources for VinFast to develop sustainably and strongly even without raising additional capital, helping VinFast only need to focus on research and development, production and business."

With a capital structure consolidated by Vingroup and its major shareholder, Mr. Pham Nhat Vuong, and the increasing popularity of customers, VinFast will have more resources to promote production, sales and cost optimization, gradually proving its business capacity and development potential, creating a more solid foundation to develop its independent capital mobilization channels, while contributing to strongly promoting the green revolution, making electric vehicles more accessible to everyone.

VinFast is selling 7 electric car models in the Vietnamese market in all segments from mini-SUV to E-SUV, with diverse prices, suitable for all customer segments.

The Dinh