Vietnam’s Vingroup Converts USD 3.3bn Loans to VinFast Shares, Accelerating EV Maker’s Global Growth

By Velizar Velikov, Head of M&A Database at EMIS

VinFast, Vietnam’s leading electric vehicle (EV) manufacturer, has secured a multi-billion-dollar funding package from its parent company, Vingroup, and its chairman, Pham Nhat Vuong. A key component of this support is Vingroup’s conversion of USD 3.3bn in existing loans into dividend-entitled preferred shares of VinFast. 

This move alleviates VinFast’s short-term financial pressures while preserving Vingroup’s stake, with options to convert the shares into common stock or interests in VinFast’s Singapore entity in the future.

In addition to the loan conversion, Vingroup will lend up to USD 1.4bn to VinFast by 2026. Pham Nhat Vuong, Vietnam’s wealthiest man and Vingroup’s founder, has pledged USD 2.1bn in personal sponsorship. 

These commitments aim to provide VinFast with the financial resources needed to achieve profitability and attain cash flow balance by the end of 2026. The funding will support operations, investments, and a transition into a growth phase, focusing on scaling production, optimizing costs, and boosting sales.

Despite not yet turning a profit since its founding in 2017, VinFast has made significant strides. In the first 10 months of 2024, it became Vietnam’s top-selling car brand, delivering over 51,000 EVs and surpassing traditional gasoline-powered vehicles in domestic sales. Internationally, VinFast is expanding into major markets such as the U.S., Canada, Europe, and Asia, while also exploring opportunities in the Middle East, India, and beyond.

VinFast gained global attention with its Nasdaq debut in August 2023, following a merger with Black Spade Acquisition Co. Initially valued at over USD 23bn, its stock surged on the first trading day, briefly pushing the company’s valuation to USD 85bn — higher than both Ford and General Motors. However, this valuation proved unsustainable and later declined.

With Vingroup’s financial backing and VinFast’s rapid market expansion, the EV maker is well-positioned to solidify its presence both domestically and internationally, contributing to the global transition to electric mobility.

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