Vietnam's richest man donates $296M to his company

By Minh Son   October 6, 2023 | 06:40 am PT
Vietnam's richest man donates $296M to his company
Vingroup chairman Pham Nhat Vuong. Photo by VnExpress/Ngoc Thanh
Vingroup chairman and Vietnam’s richest man Pham Nhat Vuong donated VND7 trillion (US$296.6 million) to his company’s automobile subsidiary VinFast in September.

The same month Vingroup ha provided the car unit with a loan of VND23 trillion.

Vuong owns 99% of VinFast’s 2.3 billion ordinary shares.

Vingroup will also provide a non-refundable grant of $500 million and a further loan of $1 billion to VinFast for a maximum period of five years.

Two shareholders controlled by Vuong, Asian Star Trading & Investment and Vietnam Investment Group (VIG), will donate the net proceeds from selling 46 million shares in VinFast to the carmaker.

Electric vehicle maker VinFast delivered over 9,500 cars in Q2, more than five times the Q1 number.

Most of the vehicles were sold to GSM, a newly established subsidiary that leases electric cars and motorbikes and operates electric taxis.

VinFast reported revenues of US$334.1 million for Q2, a four-fold increase from the first. It made a net loss of $526.7 million, down 11.2% from Q1 and 8.2% year-on-year.

VinFast shares closed at $8.05 on Oct. 4, , giving it a market capitalization of nearly $18.8 billion.

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