Vietnam’s VinFast, the electric car maker, is set to receive up to $2.5 billion in fresh funding from parent company Vingroup and its chairman Pham Nhat Vuong. The new capital will fuel VinFast’s global expansion, with a focus on entering the European market this year, targeting Germany, France, and the Netherlands.
See also: VinFast Struggles as Founder Pham Nhat Vuong Refrains from Personal Investment
The company has already exported nearly 3,000 electric cars to the US and Canada, demonstrating “remarkable progress in the global market,” according to a company spokesperson. The funding will provide VinFast with additional resources to accelerate its growth objectives and expand its development.
VinFast’s latest release, the VF 5 Plus, is its most affordable model to date, with a base price of 458 million VND (around 17,700 euros), excluding the battery. VinFast has already received over 3,000 reservations for the model within nine hours, and 80% of these have already been converted to pre-orders.
However, VinFast’s stated range of “more than 300 kilometres” is based on the New European Driving Cycle (NEDC), which is no longer used due to its significantly inflated range figures.
See also: VinFast Delays US Customer Deliveries for Electric Vehicles Due to Software Updates
The spokesperson noted that building a national brand that can compete in the international market requires significant effort and investment, including sacrificing immediate benefits. VinFast’s success in expanding its market share and its parent company’s continued investment is a sign of confidence in its future prospects.
