Pham Nhat Vuong, president of Vingroup. Photo by VnExpress/Ngoc Thanh
Vingroup Chairman and Vietnam’s richest man Pham Nhat Vuong donated VND7 trillion ($296.6 million) to his company’s automotive subsidiary VinFast in September.
In the same month, Vingroup provided the automobile unit with a loan of VND23 trillion.
Vuong owns 99% of VinFast’s 2.3 billion common shares.
Vingroup will also provide a $500 million non-repayable grant and an additional $1 billion loan to VinFast for up to five years.
Two shareholders controlled by Vuong, Asian Star Trading & Investment and Vietnam Investment Group (VIG), will donate the net proceeds from the sale of 46 million VinFast shares to the automaker.
Electric vehicle maker VinFast delivered more than 9,500 cars in the second quarter, more than five times the number in the first quarter.
Most of the vehicles were sold to GSM, a newly established subsidiary that rents electric cars and motorcycles and operates electric taxis.
VinFast reported revenue of $334.1 million for the second quarter, a four-fold increase from the first. The net loss was $526.7 million, down 11.2% from the first quarter and 8.2% year-over-year.
VinFast stock closed at $8.05 on October 4, giving it a market capitalization of nearly $18.8 billion.