[HO CHI MINH CITY] JTA Investment Qatar is exploring a potential equity investment of at least US$1 billion in Vietnamese electric-vehicle (EV) maker VinFast, as part of a collaboration between the Doha-based firm and VinFast’s parent conglomerate Vingroup.
According to a joint press release on Tuesday (Mar 4), the investor is also interested in investing in the asset portfolio of Vingroup’s hospitality arm – Vinpearl, which owns luxury and family resorts, golf courses, amusement parks and entertainment complexes located in Vietnam’s prime tourist areas.
JTA Investment Qatar is also discussing a strategic partnership to support the carmaker’s global expansion and technological development, as well as joint ventures with Vingroup to expand Vinpearl’s service offerings.
“This collaboration will generate mutually beneficial business opportunities and facilitate Vingroup’s strategic expansion into international markets,” said Amir Ali Salemi, founder and chief executive of JTA Investment Qatar.
Last October, VinFast said it secured a deal with UAE’s Emirates Driving Co, which would lead a consortium investing in the Vietnamese carmaker, without disclosing the financing amount.
Bloomberg News earlier reported that VinFast was set to receive at least US$1 billion from the Emirati investor group.
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The EV manufacturer also has an option to require US-based fund manager Yorkville Advisors to subscribe for up to US$1 billion of ordinary shares in VinFast. The deal, which was announced in October 2023, could be executed at any time within the following 36 months, subject to certain conditions and limitations.
Besides external funding, Vingroup last November committed to lending VinFast up to 35 trillion dong (S$1.85 billion) by the end of 2026, while its billionaire founder Pham Nhat Vuong Vuong personally pledged an additional 50 trillion dong in sponsorship.
The conglomerate said it would also convert all existing loans to VinFast, totalling about 80 trillion dong, into dividend-entitled preferred shares to alleviate short-term financial pressure on the loss-making EV maker.
VinFast’s operating losses and accumulated losses at the end of June 2024 hit US$965.6 million and US$9.23 billion, respectively, going by its filings to the US Securities and Exchange Commission.
Last year, Vinfast delivered 97,399 EVs globally, representing a 192 per cent increase from the performance in 2023. It is now pushing for a more ambitious sales growth target this year – to double its delivery number for 2024, according to its statement on Feb 13.
In the last quarter of 2024, the carmaker managed to deliver roughly 53,400 EVs, or more than half of its full-year result, mostly thanks to the domestic sales of its affordable models, VF 3 and VF 5.
However, despite the surging domestic demand for VinFast’s cars, only a tenth of its total EV sales in 2024 were made to overseas markets.
The company is set to release full-year business results on April 24.
