Vietnam's richest man to donate $270.8M to VinFast

By Minh Son   October 11, 2023 | 09:32 pm PT
Vietnam's richest man to donate $270.8M to VinFast
Pham Nhat Vuong, chairman of Vingroup. Photo acquired by VnExpress
Vingroup chairman and Vietnam’s richest man Pham Nhat Vuong has announced he will donate the 99.8% stake worth US$270.8 million he owns in battery maker VinES to automaker VinFast.

VinES will merge with VinFast after the share transfer, enabling the latter, an electric vehicle manufacturer, to focus its resources on research and development of batteries for EVs.

VinES was established in August 2021 with a charter capital of VND1 trillion ($41.7 million) to research and develop proprietary technologies and EV batteries for Vingroup, which currently buys them from outside sources.

In 2021 the company increased its capital to VND2.7 trillion and in July 2023 to VND6.5 trillion.
VinES does research and production of high-quality lithium-ion batteries for EVs, energy storage systems and other applications.

It has tied up with battery technology partners around the world to become a comprehensive energy solutions provider.

After the merger with VinES, VinFast will inherit all the former’s patents for battery cells and battery packs, facilities, technologies, partnerships, and contracts with VinES suppliers.

"The merger of VinES and VinFast will help us be proactive in the fields of battery technology and battery supply for EVs, optimize costs and increase technology content for VinFast vehicles," Le Thi Thu Thuy, VinFast Global CEO, said.

Vuong, who owns 99% of VinFast’s 2.3 billion ordinary shares, donated VND7 trillion to the automaker in September.

The same month Vingroup, the parent company, provided the car company with a loan of VND23 trillion.
Vingroup is also set to provide a non-refundable grant of $500 million and a further loan of $1 billion to VinFast.

Two shareholding companies 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.

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