Vietnam’s richest man shifts focus after $14bn bet on EVs

Pham Nhat Vuong sets sights on Asia

- ANDERS MELIN NGUYEN KIEU GIANG

Pham Nhat Vuong spent billions of dollars on an unsuccessful push to turn his upstart electric automaker into a major player in the US and Europe.

Now, Vietnam's richest man is changing tack — betting his path to halting deep losses at VinFast Auto Ltd runs instead through Asian markets like India, Indonesia and the Philippines.

It's the latest twist in an against-the-odds quest by the 57-year-old property tycoon to build a global carmaker. At least $14 billion has already been poured into VinFast, including funding from Mr Vuong’s conglomerate Vingroup JSC, its affiliates and external lenders — as well as more than $2 billion of his own fortune. He says he’s willing to support VinFast until his money runs out.

Mr Vuong’s commitment has kept the company afloat even as losses mount. Last year it booked $1.57 of costs for every $1 of sales and logged a $3.2 billion loss.

It’s a race against time, said Tu Le, founder of Detroit-based auto consulting firm Sino Auto Insights. While VinFast is now gaining traction in Vietnam, it's unclear whether it can build a presence in Asia quickly enough to compete against rivals from China and elsewhere.

The opening of its first overseas assembly plant in India earlier this month is a crucial piece in Mr Vuong’s Asia pivot. The factory near Thoothukudi, the Indian port city, will be capable of producing 150,000 vehicles annually for South Asia, the Middle East and Africa. It’s part of $500 million VinFast will spend in its initial India foray — an investment the company expects to eventually grow to $2 billion.