Vinfast has secured an additional funding commitment of $2.5 billion, the company confirmed on Wednesday.
That could allow it to keep it running smoothly ahead of its planned US stock market listing and after that timeframe.
Among the new funding commitments, $1 billion will be offered in the form of grants—the language the company speaks—over the next year from Vinfast founder Pham That Vuong, Vietnam’s richest man. Meanwhile, the larger Vingroup will contribute $500 million. Plus, the company says it could get another $1 billion over the next five years.
“Building a national brand that can compete in the international market is especially difficult, challenging, even sacrificing immediate benefits,” said the Vinfast Chairman. Pham Nhat Vuong is expected to donate part of his personal fortune to energize VinFast during a key acceleration period to make Vietnam’s mark on the world electric vehicle market.”
Vinfast VF8
The US initial public offering (IPO) could be delayed further, possibly into next year, according to the report. Reuters, cited two anonymous sources familiar with the matter. During this time, additional funding can support the company’s ambitious expansion plans.
Vinfast started selling petrol cars based on old BMW designs in its home market before switching to electric cars and targeting the US, starting with the VF 8 electric SUV. the first cars came to the United States was shipped in December, but not many vehicles have been delivered beyond that initial small group of 100.
Vinfast store
In addition to VF 8, Vinfast has revealed a series of car models. It plans to track VF 8 with three-row VF 9, plus smaller than VF 6, VF 7and VF 5 electric SUV. All vehicles are currently produced in Vietnam, but Vinfast has plans for additional factories in America and Germany. The US factory, located in North Carolina, is expected to start producing cars in 2024.
However, one previous drive of a prototype a year ago signaled that VF 8 has a long way to go. That experience suggests that Vinfast may be moving too fast and may need to focus on fine-tuning the VF 8 before moving on to other models and higher production numbers.
