VinFast seeking loan from US government and has filed an IPO to secure funds for biz expansion efforts –

According to a report by Reuters, VinFast is looking to secure financing from the United States government to support its expansion in the country, which includes a planned plant situated in North Carolina.

“It is also one of our financing options, but we need to prove to them that we are qualified,” said Pham Nhat Vuong, chairman of Vingroup – the parent company of VinFast. This in reference to the US government’s Advanced Technology Vehicles Manufacturing (AVTM) loan programme, which is a fund of USD25 billion established by Congress in 2007 when Detroit carmakers were hit by the financial crisis at the time.

Administered by the department of energy, the programme currently has a lending capacity of almost USD18 billion, which VinFast is looking at as one of the ways to secure funds. Additionally, the company also said recently that its Singapore-based holding company (VinFast Singapore) had filed for an initial public offering (IPO) with US securities regulators, as the company prepares an investment of USD4 billion to build its US factory.

Vuong noted that VinFast was committed to an IPO to help establish it as a global electric vehicle maker – it aims to stop making internal combustion engine-powered cars and transition to fully electric ones by the end of this year. In the US, the VF8 and VF9 will lead its EV charge, with several other models (VF5, VF6 and VF7) likely joining the mix in the future.

Even so, VinFast won’t force an IPO to happen if the conditions aren’t right. “We ourselves are determined to push and committed to this IPO, but the highest target for the IPO is not financing but to set up VinFast in the global market,” said Vuong.

Source: Read Full Article