Vingroup sets record revenue this year

May 17, 2023 - 17:12
The Board of Directors of Vingroup targets a net revenue of VNĐ190 trillion (US$8.1 billion), a gain of 87 per cent yer-on-year.
Phạm Nhật Vượng (third from the right), chairman of Vingroup, at the meeting on Wednesday morning. — Photo courtesy of Vingroup

HÀ NỘI — Despite uncertainties in the global economy, Vingroup will continue focusing on winning over international markets this year, the company said at the 2023 Annual General Meeting of Shareholders on Wednesday. 

VinFast, a Vingroup subsidiary that specialises in the design and production of electric vehicles (EVs), and Black Spade Acquisition Co. announced a merger on May 12.

The occasion represents a significant step toward VinFast's listing on the US stock market and presents Vingroup and VinFast with new options for international financing.

In addition, VinFast continues to focus on the production of launched EV models for delivery to customers and prepares for the manufacturing of new models, which are the VF 6 and VF 7, while ramping up the progress of setting up a plant in North Carolina.

In 2023, the Board of Directors of Vingroup targets a net revenue of VNĐ190 trillion (US$8.1 billion), a gain of 87 per cent year-on-year. If it is reached, this will be the highest net revenue since the company started operations. The company's profit after tax is forecast to slightly decrease by VNĐ44 billion over the last year to VNĐ2 trillion. 

For its fund-raising plan, Vingroup expects to issue a maximum of VNĐ5 trillion in bonds in one or many offerings. They are convertible bonds with a maximum coupon rate of 15 per cent a year. 

The term of a bond ranges from 12 months to 60 months. Vingroup will offer private placement or public placement, depending on the actual situation.

Last year, it raised nearly $1.1 billion from international markets, demonstrating the company's reputation globally.

Regarding the plan to use accumulated profit after tax as of the end of 2022, Vingroup proposes to distribute VNĐ5 billion to the reserve fund according to the provisions of the group's charter, and all accumulated profits will be kept for operating activities. VNS