Vietnamese billionaire Pham Nhat Vuong, CEO of Vietnamese electric vehicle (EV) maker VinFast, has pledged VND50 trillion ($2.1 billion) in sponsorship for the EV maker.

“Pham Nhat Vuong, VinFast's CEO and major shareholder, will personally sponsor VND50 trillion. This personal commitment will not impact the interests of Vingroup or its shareholders," Vingroup, Vietnam’s largest private conglomerate, announced on Tuesday.

Vingroup and its chairman Vuong announced a significant financial commitment to VinFast .

Vingroup will lend VinFast up to VND35 trillion ($1.4 billion) by the end of 2026.

The group also announced a plan to convert loans to VinFast totaling about VND80 trillion ($3.2 billion) into preferred equity shares to alleviate short-term financial pressure on the EV maker.

This support plan is designed to provide VinFast with sufficient financial resources to fund operations, investments, and other obligations.

The goal is to achieve the break-even point and cash flow balance by the end of 2026.

VinFast remains committed to independently raising capital to meet its financial needs. The support from Vingroup and Vuong will only be utilized if these independent efforts do not reach their expectations. 

VinFast has concluded its initial investment phase, which includes the operation of a 300,000-vehicle-per-year manufacturing plant in Cat Hai, an island district in Hai Phong City, northern Vietnam.

In the domestic market, VinFast delivered over 51,000 EVs in January-October this year, surpassing foreign automakers and becoming the first EV manufacturer to outsell traditional gasoline-powered vehicles in the country after just over two years of transitioning to an all-electric lineup.

Internationally, VinFast continues to expand its business in the U.S., Canada, and Europe, while rapidly penetrating new markets such as the Middle East, Indonesia, the Philippines, and India.

Vuong said this success was the result of the contributions of customers that are bravely supporting this new local brand.

He thanked all employees of VinFast and Vingroup for jointly overcoming difficulties to achieve their mission.

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