On October 9, the Board of Directors of Vingroup - Joint Stock Company (VIC) announced a resolution regarding the guarantee and security for VinFast bonds.

According to this resolution, Vingroup, chaired by Pham Nhat Vuong, has approved the guarantee and pledged its assets to secure the corporate bonds issued privately by VinFast Manufacturing and Trading Joint Stock Company in 2024, with a total par value of no more than 6.5 trillion VND.

VinFast is a subsidiary of Vingroup, headquartered in the Dinh Vu - Cat Hai Economic Zone in Hai Phong.

The Board of Directors has authorized the CEO - the legal representative of Vingroup - or a delegated representative to decide the content of the guarantee based on the actual situation, including the number of assets pledged corresponding to each bond package issued by VinFast, and to sign and execute related contracts/agreements as approved by the Board.

Vingroup has previously guaranteed VinFast bonds.

After succeeding in the real estate sector, billionaire Pham Nhat Vuong has made bold moves, investing in automobile production, and later shifting focus from gasoline vehicles to electric ones. Over the past year, he has "planted a flag in the U.S." by listing VinFast shares on Nasdaq (in August 2023) and has commenced construction of an electric vehicle factory in the U.S.

In recent weeks, companies within Pham Nhat Vuong's ecosystem have announced several significant developments, leading to substantial fluctuations in the "Vin" stock group.

The "Vingroup" stock group (VIC) has recently seen a strong rebound, with some sessions hitting the ceiling at the beginning of August after Vinhomes JSC (VHM) announced it would spend about 13 trillion VND to repurchase 370 million VHM shares, equivalent to 8.5% of the total shares in circulation.

VIC shares rose from 40,000 VND, reaching as high as 45,000 VND per share, before settling at 41,600 VND per share as of October 9.

By mid-2024, the Green and Smart Mobility (GSM) taxi company is expected to operate over 30,000 electric taxis across 45 provinces and cities, collaborating with dozens of businesses.

Manh Ha