VinFast has been using the lending market to fund regional expansion plans to compete with other global electric vehicle manufacturers. The electric vehicle industry is fiercely competitive, and significant price cuts are eroding profits.

Vingroup confirmed the financing and said the move would help support VinFast's business operations. "Given the current market conditions, the loan was obtained on favorable commercial terms," ​​the representative said, but the representative did not disclose details of the transaction. Meanwhile, spokespersons for Deutsche Bank and Shicheng Holdings International declined to comment.

According to an earlier report by Bloomberg, Vingroup founder and chairman Pham Nhat Vuong. He said last year that he will continue to support VinFast until “financial runs out.” Pan Riwang is also the CEO of VinFast.

Previously, Bloomberg also reported that VinFast is negotiating a $200 million loan with local Indian lenders to expand its business in the world's third largest automobile market. In April this year, VinFast also received a syndicated loan of Rs 1.84 trillion (S$144 million) from Bank Negara Indonesia and Maybank Indonesia to fund the construction of a factory in Indonesia's West Java province.

Bloomberg reported the news on Friday (July 4) that the loan would bring high single-digit returns, according to people familiar with the matter. VinFast is a subsidiary of Vietnamese enterprise group Vingroup. According to an announcement on LinkedIn, Jefferies Financial Group Inc. is the sole financial advisor to the transaction between VinFast and Vingroup.

According to people familiar with the matter, institutions such as Deutsche Bank and Seatown Holdings International, a subsidiary of Temasek, have provided US$510 million (S$650 million) private credit loans to Vietnamese electric vehicle maker VinFast Auto Ltd.