VinFast raises $4 billion for U.S. factory

According to foreign media reports, Vietnameseelectric carmaker VinFast said it has signed deals with several banks to raise at least $4 billion globally to finance its proposed electric vehicle in North Carolina. Auto plants and new models introduced in the United States.

VinFast parent Vingroup JSC said in a statement that Credit Suisse Group will help arrange the issuance of offshore securities to raise about $2 billion.Citigroup Global Markets Inc. will serve as an advisor on a deal with a minimum value of about $2 billion related to the development of VinFast's U.S. plant.

Any deal could include debt or private equity, according to the company's statement.Furthermore, the statement did not reveal further details.

Image credit: VinFast

In June, VinFast CEO Le Thi Thu Thuy said VinFast is on track to start producing electric vehicles in the U.S. by 2024.It is reported that the company's North Carolina plant may break ground in September.

VinFast hopes to deliver as many as 1 million vehicles globally within five to six years.Thuy reiterated last month that the goal is "achievable."

VinFast's goals appear to be more ambitious than those of other more established automakers.Chinese EV startup NIO will not celebrate its 100,000th vehicle rolling off the assembly line in about three years (April 2021), while Goldman Sachs Group earlier this month raised Tesla's 2022productionforecast Down to 1.4 million.

The VinFast U.S. plant will be located in the Triangle Innovation Point industrial park in Chatham County, North Carolina, and will contain production facilities for electric vehicles, clean buses and batteries, according to the statement.The company said annual production of electric vehicles in the first phase of the plant is expected to reach 150,000 units.