At the end of the second quarter, Vingroup recorded nearly VND45,000 billion in short-term loan receivables with VinFast and more than VND7,400 billion in long-term loans.
This figure is recorded in the explanatory notes to the second quarter separate financial statements of Vingroup Corporation (VIC).
By the end of the second quarter, Vingroup recorded more than VND67,500 billion in loans to subsidiaries. Of which, VinFast accounted for more than 77%, with outstanding loans to the group of more than VND52,200 billion, including VND44,800 billion in short-term loans and more than VND7,400 billion in long-term loans.
In the first half of this year, the manufacturing sector continued to be the second largest pillar in terms of revenue for the group. This sector brought in nearly VND14,200 billion in the first 6 months of the year. The leading revenue segment was still real estate business, with more than VND27,000 billion in net revenue. Together with other business segments, Vingroup’s total consolidated revenue in the first half of this year reached more than VND65,000 billion.
Consolidated net profit reached over 2,000 billion. Of which, divided by operating components, production continued to report a pre-tax loss of over 18,800 billion VND. This loss was “borne” by real estate business activities (pre-tax profit of over 9,600 billion VND), investment real estate leasing (over 1,500 billion VND) and other activities.
Previously, at this year’s annual shareholders’ meeting, Vingroup Chairman Pham Nhat Vuong affirmed that VinFast is Vingroup’s mission and future, so he “will never let go”. The message was reaffirmed in an interview with Bloomberg mid-June, that he “will go all the way for the electric car dream”.
Mr. Vuong also affirmed that “he will invest in VinFast until he runs out of money”, and is confident that he can steer VinFast through difficulties.
According to Vingroup’s consolidated financial report, in 2023, this production segment contributed more than VND 28,000 billion in revenue, more than double the VND 13,000 billion of the previous year.
However, VinFast still reported a net loss of nearly VND18,300 billion. However, this figure was nearly halved compared to the negative VND33,500 billion in 2022. By the end of last year, the total assets of the electric vehicle manufacturer reached more than VND180,000 billion, an increase of more than VND20,000 billion compared to 2022.
When Vingroup shareholders questioned Vingroup’s cash flow, Vingroup’s chairman affirmed that doubts about the group’s cash flow and capacity were “unfounded”. “We have never been late on a single interest payment, let alone the principal. All financial plans have been strictly followed,” Mr. Vuong told shareholders at the meeting at the end of April.
As of June 30, Vingroup’s total consolidated assets recorded more than VND720,000 billion, an increase of more than 8% compared to the beginning of the year. Divided by business segments, the total assets of the real estate business segment reached more than VND359,000 billion, followed by the manufacturing segment with nearly VND180,000 billion.