Viet Nam-based automotive company, VinFast, is expanding into the global market with ambitious plans to build electric vehicle plants in India and Indonesia by the end of 2024. The plan is part of VinFast's ambitious goal to expand its reach to 50 markets by the end of 2024.
According to Nikkei Asia, the company plans to raise about $1.2 billion in funding from its founder, Pham Nhat Vuong, and partners from Nasdaq-listed electric vehicle producers.
Pham Nhat Vuong owns more than 2 billion shares of the company and plans to sell 46 million shares over the next six months. This activity is expected to generate about $700 million to support the company's growth. The move was disclosed in a securities filing on October 12.
In addition, the securities filing also revealed that VinFast has conducted a thorough review of its capital management and electric vehicle development plans, which is expected to result in savings of approximately $400 million for the company.
These savings will be used to build CKD (completely knocked down) factories in Indonesia, Southeast Asia's most populous country, and India, the world's third-largest auto market.
Last month, VinFast confirmed that its founder, Pham Nhat Vuong, had injected $291 million into the company. The company also expects to receive an additional $500 million in funding from its parent company, VinGroup.
Back in May, VinFast had announced ambitious plans to market its electric cars in Southeast Asia, Europe and Canada. In the third quarter of 2023, they managed to sell around 10,027 electric cars. This is a slight increase from the 9,535 vehicles the company delivered in the prior quarter.