Vingroup, the parent company of VinFast — a relatively new automaker from Vietnam that has big plans to enter the U.S. market — is seeking an investment of $1 billion. The company is reported to be in talks with Qatar’s sovereign fund, as well as BlackRock, to raise the money in equity for its car-making division.
Last month, VinFast introduced their VF e35 and VF e36 electric SUVs at the Los Angeles Auto Show. With styling by Italian design house Pininfarina, the ambitious automaker hopes that their offerings will provide an alternative to the likes of Tesla’s Model Y and Model X when the cars go on sale before the end of 2022. The Vietnamese company will also spend $200 million establishing a U.S. headquarters in L.A., aided by a $20.5 million state tax credit.
Read: VinFast Unveils VF e35 And VF e36 Electric SUVs Coming To The U.S. Next Year
A Reuters report claims that the investment discussions are proceeding ahead of VinFast’s potential U.S. listing that could take place as soon as next year. The source, who was not named, said that the private fundraising negotiations were still ongoing.
If successful, it could become Vietnam’s largest-ever private fundraising. Furthermore, a potential U.S. listing could capitalize on the rampant investor optimism in EV projects that has seen Lucid Motors valued higher than Ford and Rivian perform well on the Nasdaq.
However, despite VinFast’s ambitious plans (which include opening over 60 dealerships across the U.S.), the road for the new car manufacturer hasn’t been all that easy. VinFast was planning to sell 56,000 electric vehicles in 2022, but due to the semiconductor shortage, it has scaled back that target to 15,000 cars. Furthermore, the company had big plans to enter the Australian market and purchased Holden’s old test track before later abandoning the facility and the entire market down under just a year later.
