The VF 8 model is available at VinFast stores in Canada – Photo: D.H.
Vingroup Corporation (VIC) has just sent a notice to the Securities Commission and the Hanoi Stock Exchange (HNX) about the resolutions of the board of directors on the separation of VinFast.
Accordingly, Vingroup's board of directors said that in order to reorganize the ownership structure in the VinFast Group, the group will separate VinFast Production and Trading Joint Stock Company - a company operating in Vietnam with an address in Hai Phong and establish a new subsidiary on the basis of the separated enterprise.
The new company is expected to be named VinFast Investment and Development Joint Stock Company (VinFast Investment Company).
Vingroup's resolution clearly states: VinFast Investment Company has a charter capital of VND 2,464 billion. This will be the unit holding overseas investments, serving the operations of VinFast's group of companies abroad.
Vingroup's capital contribution ratio in VinFast Investment Company is 51.1%. Vingroup's ownership ratio in VinFast after the split is 61.06%.
Vingroup's Board of Directors has also passed a resolution on lending to VinFast. Accordingly, within the next 24 months, Vingroup will lend up to VND35,000 billion to VinFast group companies in Vietnam to serve investment, production and business activities.
At the same time, the group's board of directors , chaired by Mr. Pham Nhat Vuong, also approved the conversion of VinFast's and the group's current loans with a maximum total value of VND80,000 billion.
The resolution on the separation of VinFast took place right after Vingroup Corporation and Mr. Pham Nhat Vuong announced their commitment to provide financial support for this electric vehicle brand.
According to the commitment, from now until the end of 2026, in addition to the new loan of up to VND 35,000 billion from Vingroup as stated in the above resolution, Mr. Pham Nhat Vuong also committed to sponsor VinFast with VND 50,000 billion.
“On Mr. Pham Nhat Vuong's side - as CEO and major shareholder of VinFast, the VND50,000 billion sponsorship was arranged from personal assets, not affecting the interests of Vingroup and VinFast shareholders,” Vingroup said.
Vingroup said the plan aims to help VinFast have enough resources and additional reserves to finance business operations, essential investments and fulfill other company obligations.
At the same time, the company aims to reach break-even point and balance its cash flow by the end of 2026.
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