Vietnamese billionaire Pham Nhat Vuong has set the financial world abuzz with his recent announcement to infuse an additional $1 billion from his personal wealth into VinFast Auto Ltd, a prominent electric vehicle (EV) manufacturer listed on the Nasdaq. This bold move underscores Vuong’s unwavering commitment to fortifying investments in VinFast, despite the company grappling with recent financial challenges.
During a pivotal shareholders’ meeting of Vingroup, the conglomerate presided over by Vuong, he revealed his ambitious plan to channel $1 billion into VinFast from his own coffers. This significant injection of capital comes on the heels of an already substantial investment totaling $11.4 billion that Vuong and Vingroup had funneled into the company by the close of the preceding year.
At the helm of VinFast as its CEO, Vuong holds a commanding stake in the company, with direct ownership accounting for a whopping 97%. Despite VinFast’s stock price witnessing a downtrend from its $10 initial listing to $2.5, Vuong remains bullish about the future trajectory of the EV market. Firmly convinced that the electric vehicle sector will continue its growth trajectory and eventually outpace conventional combustion engine cars, Vuong has pledged not to relinquish his support for VinFast.
VinFast has navigated a maze of challenges in recent times, including struggles to meet sales targets and grapple with substantial financial losses. The company’s financial woes have been compounded by its reliance on sales to affiliated entities and a dip in the global EV market. However, Vuong’s allegiance to VinFast remains unwavering, with over 70% of the 35,000 vehicles sold last year snapped up by an electric taxi company, GSM, under his ownership.
Undeterred by the hurdles, Vuong is exploring an array of strategies to reignite VinFast’s prospects. He is contemplating listing GSM on the international market, contingent on favorable market conditions, signaling his proactive stance in navigating the company through its current headwinds.
Vuong’s decision to infuse an additional $1 billion into VinFast is a resounding vote of confidence in the company’s long-term viability and underscores his steadfast commitment to its success. Despite the setbacks, Vuong remains resolute in his vision for VinFast, and his substantial investment underscores his determination to propel the company forward in the fiercely competitive EV market landscape.
