VinFast chief plans to invest $1 billion more from his fortune in EV maker
12:04 am Thursday, April 25th, 2024
By Phuong Nguyen
HANOI (Reuters) -Vietnamese billionaire Pham Nhat Vuong said on Thursday he planned to invest $1 billion more from his own fortune into Nasdaq-listed electric vehicle (EV) maker VinFast, and was considering listings for other companies he controls.
Speaking at a shareholders meeting of Vingroup, the conglomerate he chairs and of which he directly owns 18% of its shares, Vuong said he could further expand investments in loss-making VinFast after he and Vingroup had poured $11.4 billion into the company as of the end of last year.
“I plan to give VinFast $1 billion from my own pocket,” he said without specifying a time frame. Vuong is the chief executive of VinFast, in which he has a 97% stake in direct ownership and through companies he controls.
“The electric vehicle market will continue to grow, surpassing combustion engine cars. I will not give up on VinFast,” he said.
VinFast’s share price has plunged to $2.5 from an initial listing in August at $10, as the company failed to meet its sales targets last year and continues to report heavy losses.
Over 70% of the 35,000 cars VinFast sold last year went to an electric taxi company, GSM, owned by Vuong, filings show. Another 10% went to Vingroup and its units.
As GSM is also facing high costs while it tries to expand in the Vietnamese ride-hailing market and abroad, Vuong said on Thursday he planned to list the taxi company on the international market if conditions allow.
He also said Vingroup was considering listing its hospitality unit Vinpearl this year.
Vingroup last month announced a $1.6 billion stake and asset sale in its retail unit Vincom Retail, one of its key profit engines, alongside real estate subsidiary Vinhomes, which remains profitable but faces a challenging property market.
Vuong said on Thursday Vingroup had no cash flow problems.
(Reporting by Phuong Nguyen; Writing by Francesco Guarascio; Editing by Martin Petty and William Mallard)
