Billionaire Pham Nhat Vuong’s Vingroup is in talks with JTA Investment Qatar for a potential investment of at least $1 billion in its unprofitable electric vehicle maker VinFast Auto.
Under a memorandum of understanding signed Tuesday, the Qatari company is also exploring possible investments in assets of Vinpearl, the conglomerate’s hospitality arm, Vingroup said in a statement.
“This collaboration will unlock significant opportunities for Vingroup and its subsidiaries to drive technological, infrastructural, and sustainable economic advancement in Vietnam, while establishing a foundation for international expansion,” Vingroup vice chairwoman Le Thi Thu Thuy said.
Apart from a possible equity investment in VinFast, the Qatari fund is also exploring a strategic partnership to support the electric vehicle’s global expansion and technology enhancements, Vingroup said.Pham committed in November to invest $2 billion to shore up VinFast, which has not made a profit since it started in 2017. VinFast, which listed on the Nasdaq in August 2023, has a market cap of $8.46 billion.
With Vingroup’s ecosystem and local expertise, and JTA Investment Qatar’s experience and resources, Le expects “successful projects that foster sustainable progress, technological innovation in key sectors like electric vehicles and tourism.”The Qatari company, which started in 2010 and has built a presence also in the U.K, is exploring investing in Vinpearl’s five-star hotels, resorts and amusement parks, according to Vingroup.
Vingroup and JTA Investment are actively considering joint ventures to expand and enhance Vinpearl’s property developments, with a focus on high-growth tourism markets, the conglomerate said.Vinpearl, which began operating in 2003, is Vietnam’s leading hospitality platform with a mix of assets including luxury resorts, convention centers, golf courses, restaurants and spas.
“We are thrilled to contribute to the advancement of Vingroup’s strategic objectives and promising business areas,” particularly VinFast and Vinpearl, JTA Investment Qatar founder and CEO Dr. Amir Ali Salemi said. “This collaboration will generate mutually beneficial business opportunities and facilitate Vingroup’s strategic expansion into international markets.”
With a real-time net worth of $5.3 billion, Pham built his fortune from an instant noodles business he started in Ukraine in 1993. He sold the business to Nestle in 2010, using the proceeds to start Vingroup, which has since grown to become a conglomerate with interests in real estate, retail, healthcare, education, autos and technology.
