By Phuong Nguyen
HANOI (Reuters) – Vietnamese billionaire Pham Nhat Vuong said on Thursday he planned to invest another $1 billion of his own fortune in Nasdaq-listed electric vehicle (EV) maker VinFast and was considering introduce other companies that he controls.
Speaking at a shareholders’ meeting of Vingroup, the conglomerate he chairs and in which he directly owns 18 percent, Vuong said he may further increase his investments in VinFast, a loss-making company, after he and Vingroup have invested $11.4 billion in the company as of January 1. 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 holds a 97% stake directly and through companies he controls.
“The electric vehicle market will continue to grow, overtaking combustion engine cars. I will not give up on VinFast,” he said.
VinFast’s share price has fallen to $2.50 from its initial August listing of $10 as the company failed to meet its sales targets last year and continued to post heavy losses.
More than 70% of the 35,000 cars sold by VinFast last year went to an electric taxi company, GSM, owned by Vuong, according to filings. Another 10% went to Vingroup and its units.
While GSM also faces high costs as it tries to expand in the Vietnamese market and abroad, Vuong said on Thursday he plans to list the taxi company on the international market if conditions allow. allow.
He also said Vingroup plans to list its Vinpearl hotel unit this year.
Vingroup last month announced a $1.6 billion stake and asset sale in its retail unit Vincom Retail, one of its main profit drivers, alongside its real estate subsidiary Vinhomes, which remains profitable but faces a difficult real estate market.
Vuong said on Thursday that Vingroup had no cash flow problems.
(Reporting by Phuong Nguyen; writing by Francesco Guarascio; editing by Martin Petty and William Mallard)
