Vingroup Chairman Pham Nhat Vuong affirmed that he will not let go of VinFast and continue to support 1 billion USD

On the morning of April 25 in Hanoi, Vingroup – JSC (code: VIC) organized Dat the council Cannual winter drive 2024. Here, the group wants to pass the target of 200,000 billion VND in revenue and 4,500 billion VND in profit after tax.

Regarding the profit distribution plan for 2023, the board of directors proposed to allocate 5 billion VND to the reserve fund and all remaining profits to be retained for production and business activities. By the end of 2023, the group has an undistributed profit balance of more than VND 14,100 billion on the consolidated report.

In 2024, Vingroup continues to promote business activities to strengthen three main pillars:

At the pillar Technology – Industry, in 2024, VinFast will expand operations in many new markets around the world. Besides key markets such as the US, Canada and Europe, VinFast is expanding to neighboring countries in Asia such as India, Indonesia, Thailand, the Philippines and the Middle East and Africa.

In addition to Vietnam, VinFast is also promoting the construction of factories in the US, India and Indonesia. In order to improve profit margins, VinFast also conducts research on design initiatives to reduce raw material costs, while sourcing and purchasing effectively to optimize costs.

About the pillar Trade in Services, Vinhomes aims to increase sales through launching new projects and consolidating distribution channels, promoting the O2O model. Accordingly, Vinhomes will complete the self-trading distribution system in parallel with the existing dealer system nationwide, continue to improve the online business system, aiming to improve the purchasing experience and make policies transparent. and product price.

Vinpearl continue to maintain the brand identity of entertainment – entertainment – resort in Vietnam, and is the choice for the experience of family guests. The company plans to grow beyond 2023, through promoting the exploitation of customer sources, sales channels and launching new marketing strategies.

At 9:00 a.m. April 25, Vingroup’s 2024 Annual General Meeting of Shareholders was officially opened. Results of checking shareholder status, 97 authorized shareholders, 135 shareholders attended directly and by proxy, accounting for 76.9% of the company’s total votes.

Mr. Nguyen Viet Quang – Vice Chairman of the Board of Directors and General Director of Vingroup, opened the congress. Mr. Quang said that in 2023, VinFast will become an inspirational symbol for Vietnamese businesses when officially listed on the US Nasdaq Stock LLC, becoming a publicly listed company with global stature.

By the end of 2023, VinFast has exported nearly 35,000 electric cars and more than 72,000 electric motorbikes to the market, contributing to strongly promoting the green transformation trend.

Mr. Pham Nhat Vuong – Chairman of Vingroup at the meeting. Here, Mr. Vuong affirmed that Vingroup’s future is VinFast, will never abandon VinFast and expressed his belief in the future electric vehicle market, saying “this is an inevitable trend”. According to Mr. Vuong, VinFast will have positive cash flow from 2026 and start making profits in all markets. (Photo: Vingroup).

At the end of the annual meeting, all proposals were approved.

Discussion section

Shareholder:In the near future 2024 – 2025, will Vinpearl be listed or not, and is there a plan to divest capital from other companies?

Mr. Pham Nhat Vuong: We are filing documents to list Vinpearl at the end of this year, expecting the market to be favorable. Regarding divestment plans from other companies, there are currently no plans.

Shareholder: Green Taxi listed or not?

Mr. Pham Nhat Vuong: Currently we are expanding into international markets. We are preparing a plan to list it on the international market, if possible.

Shareholder: After 3 years as a shareholder, cash flow problems affected many stocks and sales. The market suspects that the group’s cash flow is unstable. Regarding sponsoring VinFast, how much resources has the group prepared? By building factories in the US, India and Indonesia, how much cash flow has the group prepared?

Mr. Pham Nhat Vuong: Market doubts about Vingroup’s cash flow and capacity are unfounded. Up to now, we have not delayed paying the bank interest a single penny, let alone paying the principal, all plans have been seriously implemented. Of course we are all facing difficulties, but I think the hardest part is over, the market recovery period has returned. Vinhomes recently sold a huge amount of goods. VinFast became the brand with the largest sales in Vietnam for the first time.

Therefore those doubts are unfounded. I have long said that VinFast is a project made for social responsibility, wanting to contribute to the country a leading brand in the world of cars. There are many difficulties. We dedicate all our resources to VinFast, there is no way we will let go of VinFast. I sponsored VinFast 1 billion USD. At this point, I will personally continue to arrange to sponsor VinFast another 1 billion USD.

I hope all Vietnamese people join hands to contribute to VinFast, so that the brand can bring pride and a foundation for industrial development.

Shareholder: Everyone doubts the market and the market stock price is mainly due to VinFast. I have the following opinion, the survival of the corporation depends on VinFast. Recently, the electric vehicle market is no longer favorable. The stock market, too, is no longer a natural phenomenon. My opinion is to avoid a situation where later on we can’t save each other. Vingroup is in a lot of debt. If VinFast reduces costs, the upcoming losses will not affect Vingroup.

Mr. Pham Nhat Vuong: I don’t think electric cars will go out of fashion, but will be a sustainable and irreversible trend. In particular, battery costs are getting cheaper because of technology, leading to electric cars being as cheap as gasoline cars. VinFast also has a battery rental policy. In the Indonesian and Vietnamese markets, VinFast electric cars are competing directly with gasoline cars. So is there any reason why electric cars can’t beat gasoline cars to death?

Electric vehicles make an important contribution to making the city cleaner. If we don’t do that, even our children and grandchildren will not have a healthy life. In Vietnam, we affirm strong competition with gasoline cars. I myself will spend 10,000 billion VND in the next 3 years to build a charging station. This move is mainly to solve mental problems. According to statistics in the world, over 90% of users drive less than 100km/day, while we can charge at home for 40-50km, there is no need to use an external charger.

I think VinFast is in line with the trend, Tesla is falling because there are also units like VinFast coming in to take over and take away their market share. The second story is the psychology, the herd mentality of people who do not understand the market. VinFast gets stronger every day, we make VinFast cheaper in terms of costs and marketing. The future of Vingroup is VinFast and we are on the right track.

Shareholder: Most Vietnamese people ride motorbikes. If focusing on the domestic market, VinFast should focus on customers who are housewives, convenient transportation around town. This segment will be suitable for Vietnamese prices.

Mr. Pham Nhat Vuong: In June, we opened delivery for VF 3 at a very reasonable price. We finished the VF 1 model with 3 seats, which is cheaper compared to some motorbikes. Up to now, VinFast’s car development has been completed. We will focus on exploiting value from that vehicle range.

Shareholder: Will Vingroup join the semiconductor and chip trend? When will VinFast become profitable?

Mr. Pham Nhat Vuong: I’m an auto expert, not a chip expert. As for VinFast, it is expected that by 2026 it will reach EBITDA and start making a profit. In 2026 we will have positive cash flow. In fact, some markets have begun to be profitable but on the basis of “3 No’s”: no depreciation – no profit – no financial costs, all of which is not included in the price for competitiveness. fight stronger. Gradually, step by step, we can tell the story of including depreciation costs and financial costs into the car price to aim for profit.

Shareholder: Currently, VinFast mainly collects money from selling cars, but as far as I know, carbon certificates also make money. Currently, VinFast has reduced a lot of carbon emissions. What legal documents has VinFast made to issue carbon certificates in the near future?

Mr. Pham Nhat Vuong: We established a working group to promote the sale of carbon certificates not only in Vietnam but also in other countries.

(Photo in article: Vingroup, Duc Huy. Graphics: Huy Le)