VinFast can borrow from the US government to expand operations

Mr. Pham Nhat Vuong, Chairman of Vingroup, told Reuters that car manufacturing company VinFast can seek funding from the US government to support its expansion with a factory planned in the state of North Carolina.

“It’s one of the financing options, but we need to prove to them that the company is capable,” said Mr. Pham Nhat Vuong.

This week, VinFast said that its Singapore-based parent company had filed an initial public offering (IPO) registration application with US securities regulators, after the company announced plans to invest in US securities. invested $4 billion to build a factory in North Carolina.

VinFast, which started operations in 2019, is betting on the US market, hoping to compete with automakers and startups with two electric SUVs and a battery-rental model to reduce prices. Fort.

Vingroup’s chairman said that VinFast’s IPO will help build the electric vehicle maker into a global brand, but he added that “if conditions are not right, VinFast can wait”.

“We ourselves are determined to promote and commit to this IPO, but the ultimate goal for the IPO is not financial but to bring VinFast to the global market,” he said.

The US government’s loan program for advanced technology vehicle manufacturers (AVTM) is another option that VinFast is exploring. The $25 billion program was approved by Congress in 2007 when Detroit-based automakers were in crisis. Currently, AVTM still has the ability to lend nearly 18 billion USD, according to the announcement on the website.

VinFast has promised to create 7,500 jobs under a plan to build a factory in North Carolina that will build the VF8 and VF9 electric SUVs. The company said it plans to build a factory soon after being licensed, with the goal of starting production in 2024. At the same time, VinFast also plans to export these two electric vehicle models to the US by the end of this year. from the existing factory in Vietnam.

Minh Son (according to Reuters)