[HO CHI MINH CITY] Pham Nhat Vuong, the Vietnamese billionaire founder of Vingroup, has spun off a new company from VinFast that will build on its charging-network infrastructure, freeing up the local electric vehicle (EV) maker to rev up its global game.
V-Green, which is 90 per cent owned by Vuong, will operate and manage VinFast’s existing charging network and invest US$404 million over the next two years to build new stations, as well as upgrade and complete its nationwide network in Vietnam.
That sum is three times higher than what VinFast had initially planned for infrastructure investments.
The establishment of V-Green will reduce VinFast’s infrastructure investment needs and enable the manufacturer to prioritise market expansion and sustainable development, said V-Green in a statement on Monday (Mar 18).
“V-Green will seek better access to, and mobilise, capital with preferential interest rates. This capital will fuel VinFast’s rapid expansion into international markets,” it added.
Automaker VinFast was founded by Vuong and is part of the tycoon’s Vingroup empire – the largest conglomerate in one of South-east Asia’s strongest-growing economies. Vietnam’s EV-charging systems have been largely developed by VinFast, while the other smaller providers are Evida and Vietnam Electricity Group.
Over the next five years, V-Green’s charging services will cater only to VinFast vehicles. The venture is also searching for land and global partners, including other charging companies, to provide services to VinFast EV owners around the world.
As at 2023, VinFast boasts a network of 150,000 charging ports installed at various locations including apartments, parking lots, highways and petrol kiosks. These stations can be found all across Vietnam, and have a total investment of US$500 million to US$700 million.
In an effort to boost EV-charging facility development in Vietnam, the Ministry of Transport last August submitted a proposal to the country’s deputy prime minister for a range of incentives, including lower electricity rates at charging stations, tariff and tax cuts, financial support, and a transparent legal framework in this space.
Earlier this year, the Ministry of Science and Technology also announced 11 standards for EV-charging stations in Vietnam and plans to issue other related technical regulations.
This is not the first time that Vuong has set up a new entity to support the company’s main business of automobile manufacturing.
Last year, the 55-year-old launched Green SM, which utilises VinFast cars and scooters for its pure-electric taxi, ride-hailing and rental services in Vietnam and Laos.
Green SM accounted for 72 per cent of VinFast’s total deliveries of 35,000 cars last year.
In 2024, VinFast set a target of 100,000 vehicles sold globally, with roughly half of them coming from its home turf.
In addition to its key overseas markets in North America and Europe, VinFast aims to expand to at least 50 countries this year, including markets closer to home such as Indonesia and India.
