Vietnam Startup Gets $950 Million Credit Line

October 10, 2018 at 12:24 PM

Vietnamese startup VinFast Manufacturing and Trading Co. Ltd. has arranged a $950 million line of credit to help launch its first model in 2019, Reuters reports.

 

VinFast aims to become Vietnam’s first domestic carmaker in August when it debuts its LUX S2.0 midsize crossover vehicle (pictured) and LUX A2.0 midsize sedan. Both models were unveiled last week at the Paris auto show.

A unit of Vietnamese conglomerate Vingroup JSC, VinFast figures it will spend $3.5 billion to launch the two models. Two months ago the company completed a $400 million loan facility with four international banks.

The startup has hired Italdesign and Pininfarina to design its vehicles, which will ride on BMW’s previous-generation 5 Series platform. The company also has partnered with Magna International Inc. to provide engineering and technical support. VinFast’s models will be assembled in a $1.5 billion factory now being built in Hai Phong.

VinFast’s ambitious plans include two minicar models, one of them an all-electric car, and an annual production rate of 500,000 units by 2025.