Vietnamese electric vehicle (EV) maker VinFast announced on Tuesday that it will receive an investment from a consortium of investors led by Abu Dhabi’s driver training and road safety institute Emirates Driving Company (EDC).
The proposed investment is part of a memorandum of understanding between VinFast and EDC covering areas including EVs, driver training in Vietnam, and investment to support Abu Dhabi’s industrial sector.
“In addition to gaining access to funding, VinFast will benefit from EDC’s expertise in driver training and road safety, supporting the development of a comprehensive electric vehicle ecosystem,” the Vietnamese company said in a statement.
While the value of the investment was not disclosed, Vietnamese media outlet Thanh Nien reported on the sidelines of Vietnam’s Prime Minister’s visit to the UAE that the mentioned consortium will pour at least $1 billion into VinFast.
Khaled Al Shemeili, CEO of EDC, said he saw “immense potential” in electric transportation worldwide, particularly with VinFast’s prospects in the Middle East.
The partnership announcement came a day after VinFast launched its brand in the Middle East. The firm has opened its first dealership in the United Arab Emirates (UAE), located in the downtown area of Dubai. More VinFast dealerships in the region, including Saudi Arabia, Qatar, Kuwait, and Bahrain, are expected to be opened later this year.
The emerging EV maker is setting up its public charging and related services in the UAE through a partnership with Charge&Go.
“The Middle East is a new advancement in VinFast’s expansion strategy, especially as countries in the region are adopting policies to accelerate the development of electric vehicles,” the company said.
Its parent company, Vingroup, has also entered collaboration with several infrastructure businesses in the Middle East.
It has sealed a partnership with UAE-based AD Ports Group to jointly develop shipyard-building capabilities, logistics ecosystems, and seaport operations in Vietnam. In addition, coastal infrastructure group NMDC will join hands with Vingroup in various areas, such as a project to reclaim 150 million cubic metres of coastal land for urban development, a large-scale coastal reclamation for industrial and real estate purposes, and sustainable coastal protection for high-end real estate, among others.
In digital infrastructure, Vingroup and Benya Technologies, representing a group of investors from the Middle East and Africa exploring investment opportunities in Vietnam, will assess feasibility and develop plans for a hyper-scale data centre and related technical, power, and water treatment infrastructure. The total investment is estimated at $3.5 billion.
“Our partnerships with strategic Middle Eastern partners will open major opportunities for Vingroup and VinFast to promote technology, infrastructure, and green economy development in Vietnam while building a solid foundation for international expansion,” said Le Thi Thu Thuy, Vice Chairwoman of Vingroup.
Founded in 2017, VinFast is now present in North America, Europe, Southeast Asia and India. The company listed on Nasdaq last August in an IPO, and has garnered a market capitalisation of about $9 billion.