Chairman Pham Nhat Vuong: Vingroup does not let go of VinFast

Chairman Pham Nhat Vuong: Vingroup does not let go of VinFast

On the morning of April 25, the 2024 Annual General Meeting of Shareholders of VINGROUP Group – Joint Stock Company (HOSE: VIC) approved the business plan. Later this year, the Group plans to list Vinpearl. In the electric vehicle segment, Chairman Pham Nhat Vuong said he will continue to pump money into VinFast and affirmed that electric vehicles are an irreversible sustainable trend.

​According to the vote counting minutes, as of 9:00 a.m. on April 25, Vingroup’s 2024 Annual General Meeting of Shareholders had the attendance of 135 shareholders, representing more than 2.94 billion shares, equivalent to 76.9% of the total number of shares with rights. voting. The Congress is eligible to proceed.

Profit after tax plan for 2024 is more than double the same period

2024,VIC set a record net revenue target of 200,000 billion VND, an increase of 24% compared to 2023. Profit after tax is 4,500 billion VND, more than double the previous year. The company said that this year it will continue to promote business activities to strengthen three main pillars: technology – industry, trade and services, and social charity.

Plan for each business area,vehicle manufacturing sector,VinFast aims to increase delivery output and focus on cost optimization through design, purchasing and production initiatives. Continue to expand distribution channels, taking advantage of local networks to reach about 400 sales points globally by the end of 2024. At the same time, hand over new car models in the US market, export cars to Europe and start Distributor in Indonesia.

In residential real estate sector, Vinhomes (VHM) consolidates distribution channels and promotes the O2O model to prepare for a new growth cycle of the market, specifically building a self-trading distribution system in parallel with the existing dealer system on the market. nationwide, while continuing to improve the online business system. In addition to the projects that have been opened for sale, Vinhomes is focusing on implementing potential new projects that have completed legal regulations, aiming to build social housing projects.

In tourism, resort and entertainment sector, Vinpearl (VPL) sets a goal of maintaining the No. 1 brand in entertainment, entertainment and resort in Vietnam by 2024. Vinpearl expects the market to continue its strong recovery, especially from international visitors.

In order to serve the Company’s entertainment and entertainment services business in future complex real estate projects, the 2024 General Meeting of Shareholders approved the addition of additional business lines and activities of botanical gardens, zoos and nature reserves.

Accumulated retained profits are over 14 trillion

Regarding the profit distribution plan for 2023, shareholders agreed to allocate 5 billion VND to the reserve fund and did not mention paying dividends to shareholders. If approved, this will be the third consecutive year the Company will not pay dividends but will use all accumulated profits for its business plan. As of December 31, 2023, accumulated undistributed profit after tax of VIC is more than 14,100 billion VND, based on the audited consolidated financial statements of 2023.

To serve Vingroup’s entertainment and entertainment services business at future complex real estate projects, shareholders VIC will consider and approve additional business lines, including: Activities of botanical gardens, zoos and nature reserves; other sports activities; livestock service activities; sports education and entertainment; Rent other personal and household items.

In addition, to ensure the listing of bonds due VIC The public issuance is carried out in accordance with the law, shareholders approve the Company’s registration and deposit of bonds at the Vietnam Securities Depository and Clearing Corporation and listing at the Exchange. Hanoi Securities (HNX) after completing the bond issuance.

Discuss

Vinpearl will be listed later this year

Is there a plan to list Vinpearl in the 2024-2025 period?

Chairperson Pham Nhat Vuong: We are filing documents to list Vinpearl at the end of the year, hoping the market will be favorable.

Does Vingroup have plans to divest capital from other industries?

Chairperson Pham Nhat Vuong: We don’t have a plan yet.

Does Xanh SM plan to list?

Chairperson Pham Nhat Vuong: Xanh SM is in the process of opening up its dream, will develop strongly in the international market, we are preparing, if any, we will list on the international market.

The President will continue to provide “out of pocket” funding of at least 1 billion USD give VinFast

Is the market doubting Vingroup’s cash flow?

Chairperson Pham Nhat Vuong: The market’s doubts about Vingorup’s cash flow capacity are unfounded and are rumors. Vingroup has never been late to the Bank by a penny in interest, let alone principal repayment, all plans are seriously implemented. The most difficult time is over, the market is recovering, we can look at Vingroup’s product sales, for example Vinhomes in March and April 2024 sold a huge amount of goods compared to the same period in 2023, VinFast For the first time, it became the brand with the highest sales in Vietnam compared to other electric vehicle brands on the market.

Moving forward is certain and must be steadfast, so those doubts are unfounded. Of course there are difficulties, but doing big things is not easy. I said it a long time ago VinFast is a project that we do out of social responsibility, to contribute to the country, to become a classy brand, a brand that not only sells cars but wants to move up to the top of the world’s cars.

The story of cash flow is the problem, we have to put all our resources into it. I affirm that Vinfast is the future, honor, and mission of Vingroup, so we will never let go of Vinfast. After I sponsored 1 billion USD I will continue to arrange to sponsor at least 1 more billion USD again. I hope all Vietnamese people join hands to contribute VinFastso that the brand can bring pride and foundation for the development of other industries.

By building factories in the US, India and Indonesia, how much cash flow has the Group prepared?

Chairperson Pham Nhat Vuong: Building factories abroad not only helps VinFast increase competitiveness by minimizing logistics costs, but the Group can also receive greater support from policies and taxes, and “get more” from local incentive mechanisms.

In the US, for 5 years VinFast spend 2 billion USD To develop, you can get more than 2 billion USD Support money includes policies in the host country. These are the levers to VinFast can prevail in international markets and improve sales.

The capital to develop factories in the above countries is all capital mobilized from the host countries because they all have strong support policies for green development.

Is Vingroup involved in the semiconductor chip segment?

Chairperson Pham Nhat Vuong: I’m an auto expert, not a chip expert, so I can’t comment.

At what point? VinFast Will it break even and cover accumulated losses?

Chairperson Pham Nhat Vuong: According to the plan by 2026, we will start to tie EBITDA, gradually becoming profitable, in fact some markets have started to be profitable but on a “3 no” basis: no depreciation – no profit – No financial costs, all content is not included in the price to make competitiveness 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. From 2026, VinFast will have positive cash flow.

Electric cars are an irreversible trend

The Group’s survival depends on it VinFast. Recently, the electric vehicle market is no longer favorable. Vingroup is in a lot of debt, if VinFast Reduce costs, future losses do not affect Vingroup?

Chairperson Pham Nhat Vuong: I don’t think electric cars will go out of fashion, but will be a sustainable and irreversible trend. Battery costs are getting cheaper because technology makes electric cars cheaper than gasoline cars. VinFast There is also a battery rental policy, which is an advantage to compete with gasoline cars. Some electric cars are selling cheaper than gasoline cars of the same type. In the Indonesian and Vietnamese markets, electric vehicles VinFast are directly competing with gasoline cars. Therefore, there is no reason why electric cars cannot beat gasoline cars, not to mention environmental value.

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, but that’s just solving a mental problem. According to statistics in the world, over 90% of users need to drive less than 100km/day, depending on the vehicle. VinFast If you can go 400-500km, you can charge it at home. Sometimes when you need to go back home, you can use an external charger.

I think VinFast consistent with the trend. VinFast getting 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.

Most Vietnamese people ride motorbikes. If focusing on the domestic market, VinFast Should focus on customers who are housewives, convenient transportation to and from the city. Will this segment be suitable for Vietnamese people’s prices?

Chairperson Pham Nhat Vuong: In June, we opened delivery for VF3 at a very reasonable price. We finished the VF1 model with 3 seats, which is cheaper compared to some motorbikes. Up to now the car’s development VinFast Accomplished. We will focus on exploiting value from that vehicle range.

At the end of the congress, all proposals were approved.

Strengths

FILI