Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Europe By The Numbers
  • Car Cutaways
  • Resource Center
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
    • TOYOTA EUROPE: Toyota Motor Europe's next-gen C-HR: sensory innovations revealed by Vehicle UX leader
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • SENSEAUTO: Driving the future of mobility with SenseAuto: The AGI power behind the wheel
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
February 14, 2023 04:30 AM

VinFast founder has no plans to inject more money into EV maker

VinFast lost nearly $3 billion from 2021 to Sept. 30, 2022, and expects to continue to incur operating and net losses in the near term.

Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    VinFast founded Pham Nhat Vuon
    Bloomberg

    VinFast was founded in 2017 by billionaire Pham Nhat Vuon (shown). As of September, the EV maker's owners and lenders had invested about $7.5 billion to fund operating expenses and capital expenditures.

    Billionaire Pham Nhat Vuong has no plans to personally invest any more money in VinFast, the company's CEO said, even as the Vietnamese electric vehicle maker falls behind on factory construction plans in the U.S. and cuts staff.

    Vuong, whose net worth is around $4.1 billion, is the chairman of Vingroup, a conglomerate whose operations include real estate, leisure parks and a university.

    VinFast was founded by Vuong in 2017, and as of September, the EV maker's owners and lenders had invested about $7.5 billion to fund operating expenses and capital expenditures.

    "Currently, Mr. Vuong has no plans" to personally invest further in VinFast, CEO Le Thi Thu Thuy said in response to questions from Bloomberg News.

    VinFast lost $1.3 billion in 2021 and close to $1.5 billion in the nine months through Sept. 30, according to a filing with the U.S. Securities and Exchange Commission ahead of VinFast's planned initial public offering. The December filing also said the company expects to continue to incur operating and net losses in the near term.

    In the filing, VinFast said Vingroup had issued support letters to the effect that "Vingroup has the ability and will continue to provide financial support sufficient to meet our needs for continued operation." The document also said that VinFast will "require significant additional capital," expected to come via debt and equity financing and related-party financing.

    VinFast was to begin construction of its planned North Carolina plant in the U.S. in September, Thuy said on the sidelines of the Qatar Economic Forum in June last year. The factory even won praise from US President Joe Biden, who in March tweeted that it was the "latest example of my economic strategy at work."
     

    Thuy said this week that the factory has "basically completed the site clearance" and VinFast is "finalizing the permits so construction can commence." She added VinFast is still on track to start trial production at the North Carolina facility by 2024.

    The longer the construction is delayed, the longer it will take for VinFast to start making EVs locally in North America and have its vehicles eligible for the Biden administration's $7,500-a-car clean energy subsidy.

    Related Article
    VinFast delays Europe launch on chip shortage

    Until then, VinFast plans to make EVs at its factory in Haiphong in Vietnam's north and ship them to the U.S.. But already those deliveries have been set back from an expected timeline of late 2022 to the second half of this month.

    Thuy said the delivery delay was because VinFast was waiting for certification from the U.S. Environmental Protection Agency on the increase of its model VF8's driving range, which is now 207 miles (333 km). "While waiting for the EPA's certification, VinFast has continued to update the software to improve the user experiences," she said.

    VinFast cut about 80 jobs in North America, including its U.S. chief financial officer, people familiar with the matter said earlier this month. The departure of Rodney Haynes, finance chief of VinFast US, "does not affect Vinfast's operations in the U.S. or globally," the company said.

    DAILY NEWSLETTER: Sign up and get the top news of the day in Europe every business weekday.

    In November, VinFast said it had been forced to delay the European launch of the VF 8 and VF 9 electric SUVs to early 2023 from the second half of 2022 because of the global shortage of semiconductors.

    The EV startup has said it aims to make 1.1 million vehicles annually by 2026. In the three months through Dec. 31, VinFast delivered more than 4,900 EVs, Thuy said. That gives a current annual run rate of less than 20,000 units a year.

    "In the short term, we cannot reveal specific numbers, but VinFast has delivered thousands of EVs and has nearly 70,000 reservations to be produced and delivered to customers as soon as possible," Thuy said. "In addition, we have also accepted deposits for VF5 and will soon open reservations for VF6 and VF7 globally with the expected delivery date starting from the end of 2023."

    RECOMMENDED FOR YOU
    Renault ends common purchasing agreement with Nissan
    Recommended for You
    Nissan Renault alliance
    Renault ends common purchasing agreement with Nissan
    Seat Cupra Born Zwickau 2022
    VW to cut production of two EV models due to weaker demand
    Tesla's Shanghai factory
    Tesla, BMW, Renault exports from China are part of EU anti-subsidy probe
    Dr. Kai Yu, Founder and CEO of Horizon Robotics
    Sponsored Content: Interview with Dr. Yu Kai, Founder and CEO of Horizon Robotics
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Europe By The Numbers
    • Car Cutaways
    • Resource Center
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • PUBLICIS SAPIENT: The power of post-purchase: How automakers can maximize customer lifetime value
        • TOYOTA EUROPE: Toyota Motor Europe's next-gen C-HR: sensory innovations revealed by Vehicle UX leader
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
        • SENSEAUTO: Driving the future of mobility with SenseAuto: The AGI power behind the wheel
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us