VinFast, the Vietnamese automaker, seems to love keeping things close to home, with many of its car sales and stock ownership staying within its inner circle.
· VinFast’s 2023 sales strategy consists of 7,000 EVs finding a home with its affiliated taxi firm, Green and Smart Mobility.
· Furthermore, Vingroup’s CEO, Pham Nhat Vuong, owns 99.7% of VinFast’s shares.
VinFast’s recent moves in the automotive world have raised a few eyebrows, but in a rather endearing way. Out of the 11,300 electric cars they proudly rolled out this year, over 7,000 were promptly acquired by Green and Smart Mobility. Now, here’s the fun twist: this taxi company happens to be part of the Vingroup family, just like VinFast. It’s a bit like setting up a lemonade stand and having your sister as your best customer : money comes from where it ends.
2024 VinFast VF 8 | Photo: Benoit Charette
Green and Smart Mobility’s $6.3 million shopping spree on VinFast cars in early 2023 represents an usual business practice in the automotive world, especially among start-ups. The deal struck between Rivian and its biggest shareholder, Amazon, for its electric delivery vans, makes the VinFast-GSM deal pale in comparison. With the quarter’s total sales tallying up to $84 million, one can’t help but wonder if more family deals were made in Q2.
2024 VinFast VF 8 | Photo: Benoit Charette
The close-knit theme doesn’t end with sales. Both VinFast and Green and Smart Mobility dance under the Vingroup umbrella. And the puppet master behind the scenes, Pham Nhat Vuong, once led Vingroup and now holds a substantial 51% of its stock, while also steering the ship at VinFast.
A closer look at VinFast’s stock distribution reveals that out of 2.3 billion shares, Vingroup snugly holds 1.2 billion. The remainder? Mostly nestled with Vietnam Investment Group, where Vuong plays a solo act, and Asia Star, another Vuong venture. With Vuong overseeing 99.7% of VinFast’s shares, it’s evident where the heart of the company lies.
August saw VinFast’s shares shimmy from a modest $10.45 to a heady $93, creating quite the buzz. Currently, they’ve settled at around $17.20. In the grand scheme, VinFast’s mix of internal sales and stock stronghold showcases a company that’s not afraid to mix family with business, or maybe one that’s afraid of showing its true colors to the world by internally inflating its sales figures.
