HO CHI MINH CITY -- The chief executive of VinFast will invest $1 billion of his own money into the Vietnamese electric vehicle maker to support the company as it deals with ballooning upfront spending.
Pham Nhat Vuong made his pledge Thursday during a shareholders meeting of parent conglomerate Vingroup. Vuong, the founder and chairman of Vingroup, is the wealthiest man in Vietnam.
Vuong already has personally invested $1 billion into VinFast since last year. The announcement would bring his total infusion of personal funds to $2 billion. Separately, Vuong has transferred a 99.8% stake in battery maker VinES to VinFast.
During the annual meeting, Vuong addressed questions about Vingroup's finances by saying those concerns are "unfounded."
"We're paying back bank loans with no delays," he said.
Pham Nhat Vuong, VinFast CEO and Vingroup's chairman, presides over Vingroup's annual shareholders meeting April 25. (VinFast)
Prior to the meeting, Vingroup reached an agreement with offshore creditors to extend the redemption date on roughly $300 million worth of bonds by 18 months.
Vuong also touched on VinFast's electric vehicle plant being built in the U.S. state of North Carolina.
"The investment is $2 billion, but we'll be able to receive over $2 billion in support from the U.S. government over five years," he said.
VinFast logged 7.26 trillion dong ($286 million) in consolidated revenue during the first quarter, a 270% increase from a year earlier, the company said April 17. However, VinFast recorded a net loss of 14.8 trillion dong during the period.
