Pham Nhat Vuong, the billionaire founder of Vingroup and its electric vehicle (EV) subsidiary VinFast, has established a new venture named V-Green. This company is set to enhance and manage VinFast’s charging infrastructure, allowing the EV manufacturer to focus on international growth and sustainability efforts. V-Green, which Vuong owns 90% of, aims to invest $404 million over the next two years to expand the current charging station network within Vietnam and complete its nationwide reach. This investment triples the initial budget VinFast allocated for its charging infrastructure, signaling a significant commitment to EV adoption and accessibility in Vietnam.
The formation of V-Green is expected to alleviate VinFast’s need to fund infrastructure projects directly, enabling the company to allocate resources more effectively towards market expansion and the development of sustainable transport solutions. V-Green plans to secure funding at preferential interest rates to support VinFast’s entry into new international markets. VinFast, a key player in Vietnam’s burgeoning EV market, has been instrumental in developing the country’s EV charging infrastructure, alongside other providers such as Evida and Vietnam Electricity Group. With the support of V-Green, VinFast intends to focus exclusively on servicing its vehicles with charging solutions for the next five years, while also seeking global partnerships and land acquisitions to cater to VinFast EV owners worldwide.
As of 2023, VinFast has installed 150,000 charging ports across Vietnam, with investments ranging between $500 million to $700 million. These stations are strategically located in residential areas, parking lots, along major highways, and at petrol stations to ensure accessibility for EV users. The Vietnamese government has also been proactive in promoting EV adoption, with the Ministry of Transport proposing incentives such as lower electricity rates for charging stations, tax reductions, financial support, and a clear legal framework to encourage the development of EV charging facilities. Additionally, the Ministry of Science and Technology has introduced 11 standards for EV charging stations and is working on further technical regulations.
This initiative by Vuong is part of a broader strategy to support VinFast’s core automotive business. Last year, Vuong launched Green SM, a service utilizing VinFast’s electric cars and scooters for taxi, ride-hailing, and rental services in Vietnam and Laos, which accounted for 72% of VinFast’s total deliveries of 35,000 vehicles in the previous year. With an ambitious target of selling 100,000 vehicles globally in 2024, VinFast is not only focusing on its domestic market but also aiming to penetrate at least 50 countries, including key overseas markets in North America, Europe, and closer to home in Indonesia and India.
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