Vingroup, Qatar Fund Partner to Explore $1B EV Investment Deal

VinFast, a Vietnamese manufacturer of electric vehicles, wants to collaborate with a Qatari investment fund in order to quicken its international growth. Vingroup, the parent company of VinFast, which is listed on the Nasdaq, stated that it and JTA Investment Qatar have inked a memorandum of understanding.

The announcement states that JTA is looking into investing at least $1 billion in VinFast.

This collaboration will generate mutually beneficial business opportunities and facilitate Vingroup's strategic expansion into international markets," Amir Ali Salemi, founder and CEO of JTA, said in a statement.

VinFast, which sold around 87,000 automobiles in 2024 and was the country's biggest car vendor, aims to treble its sales this year. The government has extended waivers on EV registration costs, and the EV maker has lowered the price of the majority of its models this month, which could encourage EV adoption in the 100 million-person market.

With only 10% of unit sales originating from abroad markets, VinFast's export sales were slow last year despite robust domestic sales.

Pham Nhat Vuong, Vietnam's first billionaire and the creator of Vingroup, has invested billions of dollars in the automaker, placing their bet on the world's transition to greener energy. Nonetheless, several analysts doubt VinFast's ability to maintain its expensive investments.

Fitch Ratings predicted in January that VinFast's attempt to significantly boost sales over the coming years would be challenging, especially abroad, and result in "cash burn." The ratings agency anticipates that VinFast would use equity to finance some of its investments, which could provide execution issues.