VinFast- the Vietnamese electric vehicle (EV) maker has come up with big ambitions. It's determined to parlay its success in its home country into a giant footprint across the entirety of Southeast Asia and maybe beyond.
“We'll be very focused on expanding throughout Southeast-Asia; Indonesia being our first target," CEO Le Thi Thu Thuy said in an interview with Insider. "Eventually we want to raise a lot of capital for global expansion," she further added!
Southeast Asia has a lot of Growth Potential- According to CEO Le Thi Thu Thuy
"Southeast
Asia has great potential for growth as regional governments look to promote EV
adoption," VinFast CEO Le Thi Thu Thuy said.
VinFast
will aggressively enter the Asean market, starting with Indonesia, where it
announced plans to expand and aims to start deliveries there next year.
The company
unveiled ambitions earlier this year that included a plan to eventually sell
its electric vehicles in seven more Asian markets.
Their expansion truly accelerates their long term goals of establishing a plant in Indonesia by 2026.
VinFast also Plans to Invest Approx. $1.2 Billion in the Indonesian Market
Founded and
controlled by Vietnamese tycoon Pham Nhat Vuong, VinFast is one of several
Southeast Asian companies hoping to ride the EV wave and challenge traditional
carmakers that are waking up to the Earth's dire need for cleaner transport.
The company
plans to invest about $1.2 billion in the Indonesian market in the long-term. VinFast
filed a report with the US Securities and Exchange Commission on September 12. According
to the exchange filing, VinFast delivered 10,027 cars and 28,220 electric
scooters in the third quarter of this year.
So far (the report said), its cumulative deliveries totalled 28,727 vehicles. It said it had sold 7,100 vehicles to GSM Green and Smart Mobility Joint Stock Co., a taxi company where Pham holds a majority (95 per cent) stake.
VinFast will Eventually Raise a Lot of Capital
VinFast
will eventually raise “a lot of capital” to fuel its development and expansion,
but it is still working on some strategic moves before pulling the trigger,
according to its chief executive.
The company-
a subsidiary of Vietnam’s largest conglomerate Vingroup JSC- was founded by the
country’s richest man Pham Nhat Vuong. It plans to depend on support from both
entities for at least the next 18 months, CEO Le Thi Thu Thuy said in an
interview with Bloomberg TV.
VinFast is
building a $2 billion manufacturing complex in North Carolina and plans to
build more such factories in Indonesia and India. Its third-quarter results
showed a wider loss than one year prior although its operations only started
this year. However, if things go smoothly, they aim to break even by end of
2024 and maybe even turn profitable after 2025.
For now though these figures seem a bit unachievable as the net loss for the third quarter stood at $622.9 million whilst total revenues were just $342.7 million (mostly from EV sales).
VinFast is also Working to Increase its Investor Base
VinFast is
working on transactions to increase its investor base, according to Bloomberg
data.
Vingroup
JSC directly owns 50.8% of VinFast stock as of Sept. 21, while VIG Holdings Ltd
has a 32.9% stake and Asian Star Trading & Investment Ltd owns 12.9%. All
three are majority-owned by Vuong’s conglomerate Vingroup.
Key
shareholders VIG and Asian Star plan to sell a total of 46 million shares “for
funding expansion plans,” according to VinFast filings with US regulators.
So, it seems like VinFast is planning to raise funding from a lot of investors!
The Bottom Line
VinFast is
looking to expand across Southeast-Asia, and has especially set its sights on
Indonesia where it plans to invest about $2 billion.
It also
wants to grow its investor base even further. Let's see what's in store for
this EV company!