Vietnamese billionaire Pham Nhat Vuong is investing another $1 billion in the electric car brand Vinfast. Vuong said this during a shareholders’ meeting. This is reported by the Reuters news agency.
Since this year, Vuong has been CEO of Vinfast, of which he owns 97 percent of the shares. “I plan to give $1 billion from my own pocket to Vinfast,” Vuong said. “The electric vehicle market will continue to grow and outpace internal combustion engine cars. I will not give up on Vinfast,” he said.
Vuong, together with Vingroup, has invested $11.4 billion into the loss-making brand to date.
Taxi company
Vinfast’s sales are disappointing. Last year, the Vietnamese brand sold 35 thousand cars worldwide. It is interesting that 70 percent of these cars were sold to taxi company GSM, which is owned by Vuong. In addition, 10 percent of sales were delivered to Vingroup subsidiaries.
In AM Powerranking, Vinfast is assigned a small/reasonable chance of success by the editors. ‘There are Vinfast cars for sale in the Netherlands, but no sales are taking place at the moment. This gives little reason for optimism. However, VinFast is not currently being written down, because the company still has sufficient reserves and because Vietnam is a country with many natural resources.’ View the complete overview of all new entrants to the Dutch market here.
