Billionaire Pham Nhat Vuong sponsors VinFast with more than 3,200 billion VND

Mr. Pham Nhat Vuong at Vingroup's shareholders' meeting in April this year - Photo: LINH NGUYEN

Vingroup Corporation (stock code: VIC) has just announced its audited semi-annual financial report for 2024.

In the key transactions with related parties section, the report recorded the funding of Mr. Pham Nhat Vuong - Chairman of Vingroup's Board of Directors - for the subsidiary with a value of VND 3,277 billion in the first half of 2024.

The sponsorship of VinFast - a member company of Vingroup - was announced by Mr. Vuong at the shareholders' meeting held in April this year.

At that time, Mr. Vuong said he would arrange his personal assets to finance VinFast with about 1 billion USD. The billionaire's goal was to focus on building VinFast into a "top" brand in the world.

"VinFast is the mission, honor and future of Vingroup, so we will never let go of VinFast," Mr. Vuong affirmed to shareholders.

Admitting that making electric cars is very difficult, Mr. Vuong also said that doubts about VinFast's capacity or cash flow are unfounded. "Up to now, we have not been late with the bank for a single penny of interest, let alone the principal," Mr. Vuong said.

Previously, some shareholders expressed concern about how long the group's potential could "shoulder" VinFast when this car brand was suffering from prolonged losses.

Returning to this year's semi-annual financial report, in addition to the above-mentioned sponsorship amount, the report's explanatory note also noted that Mr. Vuong transferred shares in a subsidiary worth more than VND1,820 billion.

Regarding business performance, the report shows that Vingroup's total revenue in the first half of this year reached more than VND64,000 billion.

The largest portion of revenue still comes from the real estate transfer sector with more than VND 26,331 billion, followed by production and related activities with more than VND 14,056 billion.

Because the cost of operations is still much higher than the revenue, VinFast's manufacturing segment alone is still losing money. However, in total, Vingroup's consolidated profit after tax still reached VND2,053 billion.

Source: https://tuoitre.vn/ti-phu-pham-nhat-vuong-tai-tro-vinfast-hon-3-200-ti-dong-20240830171405252.htm