Vietnam’s Vingroup in talks to raise $1b for automobile unit

Vietnam’s Vingroup is in discussions to raise US$1 billion in equity for its automobile arm from investors like Qatar’s sovereign fund and BlackRock, Reuters reported, citing three sources.

If the deal goes through, it will become Vietnam’s largest private fundraising to date.

The alleged talks come as the Vietnamese conglomerate looks to step up its plans to launch electric cars in the US market by 2022. In April, the firm unveiled a new electric bus line in Vietnam.

Later in May, the company announced the shutdown of VinSmart, its smartphone and TV production unit. It had then said that it would divert resources to its car unit VinFast.

In 2019, South Korean conglomerate SK Group had invested US$1 billion in Vingroup.

See also: Bringing electric motorbikes to Southeast Asia’s masses