Vinfast Secures Funding From Banks for Vehicle and Battery Plants in the U.S.

vinfast factory 6 photos
Photo: vinfast
Fresh off announcing earlier this month the opening of the first group of showrooms dedicated to the introduction of their first electric vehicle, Vinfast has secured financing for building manufacturing capabilities in the U.S.
The Hanoi-based car company is poised to raise roughly $4 billion through Credit Suisse and Citigroup to manufacture electric vehicles and batteries in the state of North Carolina. The funding is shaped by a mix of debt and equity. The two banks will reportedly each facilitate at least $2 billion in the financing, according to Asia-Nikkei.

In April, Vinfast registered for an IPO in a filing with the U.S. Securities and Exchange Commission that, if granted, would be the first for a Vietnamese company in the U.S. The news comes amid reports of the Ministry of Public Security in Vietnam investigating a misinformation probe surrounding Vingroup's founder Pham Nhat Vuong.

Parent company Vingroup has joined a host of other Asian companies shifting manufacturing to the U.S., following South Korean automaker Hyundai and Taiwanese chip maker TSMC. The company is hopeful its marketing launch in California will garner the attention of a hungry EV market. Earlier this year, the state became the first in the nation with over 1 million registered electric vehicles, with one-third coming in 2021. In addition, according to the LA Times, the California Air Resources Board has proposed a mandate that 35% of all vehicles sold in California beginning with the 2026 model year be plug-in or other zero-emission vehicles.

The Vingroup established itself as a maker of televisions and smartphones in Vietnam before making the leap to gas-powered vehicles inside Vietnam. The company reported a loss of 23.9 trillion Dong ($1.05 billion) in February due to slumping sales of gas-powered vehicles. The shift to EVs began last year with the design and development of the VF 8, which is expected to be priced at $40,700 for the base model.
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