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VinFast to move headquarter to Singapore ahead of IPO

VinFast is shifting its headquarters to Singapore as the electric vehicle maker readies for a public listing and the first production run of cars for U.S. and European markets.

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The three-year-old unit of conglomerate Vingroup JSC (VIC.HM) will start building its VF8 sport utility vehicle next week, its own EV batteries in August and a $4 billion U.S. factory by summer-end, its CEO Le Thi Thu Thuy told Reuters.

In the meantime, VinFast has filed for an initial public offering (IPO) in the United States through a Singapore-based holding company – though market conditions might push the deal into 2023, Vingroup said earlier this month.

“We feel that Singapore is a jurisdiction that will give investors more confidence,” Thuy said of her currently Hanoi-based company. “We put ourselves in the shoes of the investors.”

Parent Vingroup is Vietnam’s largest listed company by market capitalization, with businesses as varied as retail and real estate. It created VinFast in 2019 to build conventional petrol-powered cars before switching exclusively to EVs in 2021.

Though the market is crowded with established automakers vying with a miscellany of startups, Vingroup in May still said it saw a global EV shortage which it deemed a “golden chance”.

With a local line-up of just one small EV, the e34, VinFast has invested heavily to develop models for overseas. Alongside its VF8, it has also been developing the larger VF9, though that was delayed by about a month because of the impact of COVID-19 containment measures in Shanghai on suppliers, Thuy said.

“We will deliver cars to the international market by the end of the year,” Thuy said, starting with the VF8. “All of our efforts is on the start of production for the VF8.”

VinFast is particularly betting on the U.S. market where it hopes to sell the two SUVs with prices from about $41,000 with a battery leasing plan. It aims to open its first showrooms in California by early July, including a flagship in Santa Monica, Thuy said.

The automaker also plans to build a plant in North Carolina where it is seeking government financing, with construction starting by summer-end and production beginning in 2024.

“Like any big corporate, we always consider all potential financing transactions,” Thuy said.

VinFast’s first VF8 models will be powered by batteries from South Korea’s Samsung SDI Co Ltd (006400.KS), but the automaker has been developing its own batteries as a hedge against future shortage, Thuy said.

VinFast will start making the batteries in August and expects to have the capacity to produce about 3,000 vehicles with its own batteries by year-end, she said.

Thuy said she planned to spend a lot more time in Singapore where VinFast is in the process of buying a building, turning what has been a paper company into an operating hub that would include an office and housing for staff and executives.

“We are determined to establish the company in Singapore,” Thuy said.

Source: Reuters

Source: https://e.nhipcaudautu.vn/companies/vinfast-to-move-headquarter-to-singapore-ahead-of-ipo-3345744/

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Vietnam’s 2022 economic growth projected at 7%

Vietnam’s GDP is likely to expand by around 7 percent in 2022, much higher than 2.58 percent growth of 2021.

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Minister of Planning and Investment Nguyen Chi Dung made the above statement at the Cabinet meeting in Hanoi on July 4.

With this scenario, the economy needs to expand 9 percent in the third quarter and 6.3 percent in the last quarter this year, the minister said.

In the first half, the Southeast Asian country’s GDP accelerated to 6.42 percent growth compared to the optimistic scenario of 5,1-5,7 percent as figured out in the Government’s Resolution No. 01/NQ-CP, dated January 01, 2021 on major tasks and solutions for implementation of socio – economic development plan and state budget estimate for 2022. 

Especially, the GDP grew 7.72 percent in the second quarter, which is the fastest growth pace for April-June period since 2011.

Earlier, the World Bank predicted Vietnam’s 2022 GDP growth at 5.5 percent if the COVID-19 pandemic is controlled.

The projection is lower than the Vietnamese Government’s predictions at 6.5-7 percent, HSBC at 6.5 percent and Standard Chartered at 6.7 percent.

Source: https://e.nhipcaudautu.vn/economy/vietnams-2022-economic-growth-projected-at-7-3346528/

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Dragon Capital buys 2.1 million shares of Sacombank

Asset management company Dragon Capital has bought 2.1 million shares of HCMC-based Sacombank, increasing its stake in the bank to 6.09 percent.

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On June 29, two affiliated funds, CTBC Vietnam Equity Fund and Norges Bank, bought 2.3 million shares of the lender while a third, Samsung Vietnam Securities Master Investment Trust, sold 200,000 shares.

The value of the deal is estimated at VND47.5 billion (US$2.03 million) based on the share’s closing price last Wednesday.

Funds under Dragon Capital own 114.8 million shares or a 6.09 percent stake in the bank.

In March, Dragon Capital had raised its stake from 4.98 percent to 5.05 percent, after its largest fund, Vietnam Enterprise Investment Limited, bought 1.25 million shares.

Source: VnExpress

Source: https://e.nhipcaudautu.vn/companies/dragon-capital-buys-21-million-shares-of-sacombank-3346515/

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Vietnam targets 7% GDP growth this year: minister

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HANOI — Vietnam is aiming for economic growth of 7% this year, the country’s planning and investment minister said on Monday, higher than an official target of 6.0%-6.5% set previously.

To achieve this, year-on-year economic growth in the third quarter needs to be 9.0% and in the fourth quarter 6.3%, minister Nguyen Chi Dung also said during a government meeting.

Dung said Vietnam’s budget was in surplus, giving scope for fiscal policy to be used to support businesses and residents.

“Credit institutions will need to further cut their lending interest rates to reduce input cost pressure for businesses and for the economy,” he said.

Vietnam, a regional manufacturing hub, started lifting its coronavirus curbs late last year, allowing factories to resume full operations.

The economy is recovering after growing only 2.58% last year, the slowest pace in decades.

The Southeast Asian country reported GDP growth of 7.72% in the second quarter, backed by strong export growth, but warned of upward inflation pressure for the rest of the year. 

Source: https://tuoitrenews.vn/news/business/20220704/vietnam-targets-7-gdp-growth-this-year-minister/67932.html

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