Vietnamese EV Maker Secures $1 Billion Funding Led by UAE Partners

Vietnamese electric vehicle manufacturer VinFast Auto is set to secure at least $1 billion in overseas funding led by the Emirates Driving Company as part of strategic partnerships initiated during an official visit by Prime Minister Pham Minh Chinh to the UAE. The memorandum of understanding encompasses areas such as maritime development, digital transformation, and green transportation. Additionally, Aramco is exploring investment opportunities in Vietnam’s oil refining and distribution sectors, signifying escalating cooperation between the two regions.

Vietnamese electric vehicle manufacturer VinFast Auto is poised to secure a significant influx of capital amounting to at least $1 billion, spearheaded by the Emirates Driving Company (EDC), a prominent provider of driver training and road safety services in Abu Dhabi. This information has been reported by Bloomberg, citing sources familiar with the arrangement. During an official visit to the United Arab Emirates (UAE) by Vietnamese Prime Minister Pham Minh Chinh, VinFast and its parent company, Vingroup, established strategic partnerships with several Middle Eastern companies. These partnerships encapsulated several essential areas, such as maritime development, shipyard capabilities, sustainable land use, digital transformation, and collaborations in electric vehicles and green transportation, as articulated by VinFast. As part of the agreement, EDC will take the lead in creating a consortium that will invest in VinFast. This partnership will not only offer VinFast access to vital funding but will also leverage EDC’s proficiencies in driver training and road safety to foster a holistic electric vehicle ecosystem. VinFast articulated that this collaboration aims to boost global electric vehicle production, cater to rising demands for green transportation, enhance road safety awareness, and reinforce EDC’s commitment to advancing the transformation towards green transportation in the Middle East, thus addressing pertinent environmental and climate issues. Additionally, VinFast Auto has made its debut in the Middle Eastern market as part of its broader international growth strategy. Concurrently, Vietnam is advancing its collaboration prospects with the Middle East in fuel supply and distribution avenues. Major Saudi oil corporation Aramco has expressed intentions to invest in oil refining and fuel distribution in Vietnam, recognizing the nation’s extraordinary economic growth which has consistently outstripped the global average in recent years. The Vietnamese government articulated in a statement, as reported by Reuters, that “Vietnam has great potential in the region, therefore, Aramco wishes to invest in oil refinery and petrol distribution in the country.” In this vein, Aramco recently formalized a strategic collaboration framework with the Vietnam Oil and Gas Group (Petrovietnam), aspiring to explore synergistic opportunities in the energy and petrochemical sectors.

This article addresses recent developments concerning VinFast Auto, a Vietnamese electric vehicle manufacturer, which is securing overseas funding as it seeks to expand into the Middle Eastern market. The funding, primarily led by the Emirates Driving Company, underscores the growing collaboration between Vietnamese companies and Middle Eastern entities, particularly in the realms of green transportation and energy supply. The backdrop includes Vietnam’s ambitions to enhance its electric vehicle production and address environmental challenges, aligning with regional advancements in sustainable practices and partnerships within the energy sector. Additionally, the interest from Saudi Arabia’s Aramco highlights the strategic significance of Vietnam in the oil and gas landscape.

In conclusion, VinFast Auto’s impending acquisition of $1 billion in funding from the Emirates Driving Company is a pivotal move in establishing a robust electric vehicle ecosystem in Vietnam and the Middle East. This partnership not only addresses the escalating demand for sustainable transportation solutions but also enhances regional cooperation in energy supply and distribution. Moreover, the collaboration between Aramco and the Vietnamese oil sector demonstrates the attractive investment landscape Vietnam offers amidst its impressive economic growth trajectory.

Original Source: oilprice.com