Vietnam’s Vingroup has signed a memorandum of understanding (MoU) with JTA Investment Qatar to explore a potential investment of at least $1 billion in its electric vehicle subsidiary, VinFast, the conglomerate said on Tuesday.
The agreement, which also covers Vingroup’s hospitality business Vinpearl, will facilitate discussions between the two firms on a possible collaboration. “Under the MoU, the companies will engage in discussions to define their future collaboration in pursuing mutually beneficial objectives,” Vingroup said in a statement.
See also: VinFast Nearly Triples EV Sales in 2024, But Struggles Abroad
VinFast, which was listed on Nasdaq in 2023, has been seeking strategic investors to support its global expansion. While the company has gained traction in its domestic market, it has faced challenges in attracting foreign buyers.
“This collaboration will generate mutually beneficial business opportunities,” said Amir Ali Salemi, founder and chief executive officer of JTA Investment Qatar, according to Vingroup’s statement.
See also: Vingroup Faces Renewed Scrutiny Over VinFast Investments Amid Rising Costs and Share Sell-Offs
VinFast is pursuing an ambitious growth strategy, but its expansion comes with significant costs. The potential investment from JTA Investment Qatar could provide a financial boost as the automaker continues to scale its operations and broaden its global reach.
