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Tag: nhat vuong

  • Pham Nhat Vuong, Vietnam’s richest man, donates $800M to boost automaker VinFast’s ambitions

    Pham Nhat Vuong, Vietnam’s richest man, donates $800M to boost automaker VinFast’s ambitions

    Billionaire Pham Nhat Vuong, the chairman of the private conglomerate Vingroup and recognized as Vietnam’s wealthiest individual, has injected a staggering VND20.5 trillion (approximately US$790 million) into the automaker VinFast between November and May. This generous contribution is part of his promise of VND50 trillion made last year, as disclosed by the company on Monday.

    Financial Support Fuels Expansion

    In the past six months, VinFast has also secured a loan of VND30.57 trillion from its parent company, reinforcing its financial backbone. Vingroup remains committed to supporting VinFast, pledging a maximum of VND35 trillion to ensure the company’s sustained growth. Vuong, who wears multiple hats as CEO and founder of VinFast, experienced a remarkable surge in his wealth—an increase of $3 billion over the last two months—bringing his total fortune to over $10 billion, according to Forbes.

    Impressive Growth Amid Losses

    VinFast reported exceptional growth for the first quarter, showcasing a 150% increase in revenues year-on-year, reaching VND16.31 trillion. The company delivered a remarkable 36,330 electric cars and an astonishing 44,904 motorcycles and bicycles during this period, translating to impressive increases of 296% and 473% respectively. However, despite these successes, VinFast also reported a loss of VND17.69 trillion, which marks a 20% rise in losses compared to the previous period. To respond to the challenges and capitalize on its momentum, the company plans to adjust its sales target for the year from 200,000 to 280,000 units, as shared by deputy CEO Thai Thi Thanh Hai.

    Who knew the complex world of electric vehicles could be this exhilarating?

    Questions & Answers

    How much has Pham Nhat Vuong invested in VinFast?
    Pham Nhat Vuong has gifted VinFast VND20.5 trillion (around US$790 million) over the past six months.

    What has been VinFast’s recent sales performance?
    VinFast delivered 36,330 electric cars and 44,904 motorcycles and bicycles in the first quarter, marking significant increases in both categories.

    What loss did VinFast report despite impressive growth?
    The company reported a loss of VND17.69 trillion, a 20% increase compared to the previous period, even amid record revenue growth.

  • VinSpeed, led by billionaire Pham Nhat Vuong, unveils ambitious $61B high-speed rail initiative.

    VinSpeed, led by billionaire Pham Nhat Vuong, unveils ambitious $61B high-speed rail initiative.

    VinSpeed, a company established by Vietnam’s wealthiest individual, Pham Nhat Vuong, has unveiled an ambitious plan to construct a North–South high-speed railway, projected to cost a staggering VND1.56 quadrillion (US$61 billion). This monumental project aims to be completed by 2030, setting the stage for Vietnam’s modern railway industry while invigorating regional economies.

    As part of its investment strategy, VinSpeed, nestled within the ecosystem of Vingroup—Vietnam’s largest private corporation—has committed to covering 20% of the total investment, which equates to roughly $12.27 billion. To fund the remaining 80%, VinSpeed has proposed to secure zero-interest loans from the state budget, repayable over 35 years, not counting expenses related to land clearance such as compensation and resettlement.

    With a charter capital of VND6 trillion (US$231 million), VinSpeed is ambitious about hitting the ground running, vowing to commence construction by December 2025 and bring the full railway into operation by December 2030.

    The firm is also engaging with premier partners from China, Germany, and Japan for technology transfer, focusing on domestic production of locomotives, carriages, and signaling systems. Additionally, VinSpeed plans to rapidly train the workforce to enhance local technical capabilities, promoting Vietnam’s independence in railway development.

    To drive revenue and partially finance public investment, VinSpeed will collaborate with Vingroup and Vinhomes to create urban areas adjacent to key railway stations, utilizing the innovative Transit-Oriented Development approach.

    Duong Thu Van, a representative of VinSpeed, emphasized the company’s steadfast commitment to this groundbreaking initiative, placing a strong emphasis on innovation, decisive action, and collaborative efforts with domestic businesses to not only develop the railway system but also cultivate a sustainable high-speed rail industry in Vietnam.

    Who knew a high-speed journey could also pave the way for fresh urban landscapes?

    Questions & Answers

    What is the estimated cost of the North–South high-speed railway project?
    The project is estimated to cost VND1.56 quadrillion, which is approximately US$61 billion.

    What portion of the funding is VinSpeed responsible for?
    VinSpeed has committed to mobilizing 20% of the total investment, or about $12.27 billion.

    When is the construction of the railway expected to start?
    VinSpeed plans to begin construction by December 2025, with the goal of having the railway operational by December 2030.