1,000% Stock Boom Frees Vietnam Tycoon to Pour Cash Into EVs

Pham Nhat Vuong Photographer: Linh Pham/Bloomberg Photo by Linh Pham /Bloomberg

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(Bloomberg) — Vietnam’s richest person spent billions of dollars of his personal fortune on his emerging electric automaker and other ventures last year as the shares of his corporate group soared.

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Pham Nhat Vuong contributed $900 million to VinFast Auto Ltd. and paid another $1.59 billion to acquire some of its research and development assets. The $2.5 billion bet more than doubles his disclosed lifetime contributions to the EV-maker, according to data compiled by Bloomberg from corporate disclosures. 

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Vuong established VinFast, which has yet to break even, in 2017 in a quest to build a global carmaker. The company lost nearly $4 billion last year as it opened plants in Indonesia and India as part of a pivot to Asia, following largely unsuccessful efforts to crack the US and European markets. On Thursday, the US state of North Carolina said it sued VinFast, alleging the company breached agreements tied to a planned electric vehicle factory.

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The majority of Vuong’s wealth is derived from Vingroup JSC, his sprawling conglomerate that’s also VinFast’s parent. After rising eightfold last year, Vingroup’s shares have kept climbing through 2026, making him Southeast Asia’s richest person. He is worth about $30 billion, according to the Bloomberg Billionaires Index.

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The long rally reflects Vingroup’s role as the No. 1 stock for foreign investors looking for exposure to Vietnam, but it also raises questions about the company’s valuation, said Bloomberg Intelligence analyst Jason Low. It currently trades about 150 times price-to-earnings.

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“The appreciation in Vingroup’s share price over the recent period primarily reflects the positive macroeconomic outlook of Vietnam,” a spokesperson for Vingroup said in response to emailed questions. “We aim to leverage favorable market conditions and capitalize on our market experience and execution capabilities to further strengthen and expand our businesses.”

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To many in Vietnam, including senior government officials, Vuong and Vingroup are a testament to the country’s progression from a socialist economy to a market-oriented one. Vuong started in property development in the early 2000s after making a small fortune in Ukraine with an instant-noodle business. Today, Vingroup develops and operates residential and commercial real estate, resorts, hospitals and schools all over Vietnam, and has recently started ventures focused on robotics, films, steel and more.

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VinFast is Vuong’s biggest bet to date. When its first car rolled off the assembly line, then-Prime Minister Nguyen Xuan Phuc declared it “a great day for Vietnam.”

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The government’s increasing emphasis on the role of the private sector is also helping Vingroup’s share appreciation, a spokesperson for the company said.

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Vuong has personally contributed at least one-quarter of the $17 billion of financing that’s been deployed since VinFast was founded. It sold nearly 197,000 cars last year and more than 400,000 electric scooters and bikes, posting $3.59 billion of revenue. Vingroup and other companies controlled by Vuong were responsible for 27% of that, down from 31% the prior year.