Vietnamese billionair Pham Nhat Vuong’s production of pure electric cars is the last gamble for VinFast, because its gasoline cars have completely failed. Thus, electric vehicle production will take advantage of the infrastructure of the previous gasoline vehicle factory.
However, when electric vehicle production takes too much of the Group’s capital, canceling electric vehicle production also means “selling the factory for scrap.”
Mr. Pham Nhat Vuong has done everything possible to make electric cars survive. In it, he made the most of the “home field advantage” by encouraging customers who were “so proud of Vietnam” to buy cars due to their patriotism. However, reality shows that the amount of VinFast cars consumed in the Vietnamese market is nothing compared to the long-standing car brands present in Vietnam.
The scandals are piling up day by day, so the “so proud of Vietnam” part is becoming more and more real. Therefore, expanding the market in Vietnam also faces many difficulties. However, it seems that in the difficult situation, Mr. Vuong showed his wisdom. He came up with the idea, produced electric cars and sold them to his units. In addition, Mr. Vuong also joined hands with the government to establish Vinbus, which both sells cars produced by VinFast and earns subsidies from the government.
Since March last year, Vinbus has put into operation a bus route connecting Vinhomes urban area in Thu Duc to the center of District 1. The company is subsidized by the Ho Chi Minh City government, at a rate of 44.1% of the total operating costs. However, as a result, this bus route is in a hole.
Currently, this company is demanding that the city government increase the subsidy rate from 44.1% to 64.8%, otherwise, the company will close this bus route. This is considered Mr. Vuong’s act of “making a fool of himself” to earn more money from the budget (which is actually the people’s money).
In fact, it was Mr. Vuong’s intention to create an electric bus route from Vinhomes Thu Duc to the center of District 1. Because of this connection, his Vinhomes can take advantage to increase selling prices in Vinhomes Thu Duc urban area. Because Vinhomes proves that the more convenient the travel from the project to the center, the more valuable the real estate is. The benefits of this bus route are included in the selling price of the project. However, now Vinbus requests more privileges otherwise it will abolish this bus route, making many project home buyers feel like they were cheated by Vin.
It is unclear whether if the Ho Chi Minh City government will please Vinbus or not? If we indulge Vin, it would be like the government is taking more tax money from the people to put into the rich VinGroup’s pocket. Setting up a bus route to increase real estate prices requires Vinbus to bear its own profits and losses. The increase in real estate prices thanks to convenient transportation, Vin does not let people enjoy, but when the bus has a loss, they have to struggle to ask the state to take more money from the state budget to make up for it?
Vin claims that the subsidy rate of 64.8% is equal to the level of buses running on Diesel. However, Vin forgot that diesel buses are widely used buses. These buses connect the train station-bus station-airport, connecting resettlement areas, social housing, industrial parks, universities, and hospitals, suburban residential areas, low-income residential areas, etc. Therefore, they deserve high subsidies. Because the state subsidizes this type of bus, as a welfare cost. High subsidies for Vinbus only help the Vinhomes project raise real estate prices to make a profit for the company.
Create a bus route to increase real estate prices for Vin. Vin sold cars, Vin sold houses at high prices, now Vin demands more subsidies. Perhaps, Vin should eat “less” so that the city government can use that money to perform many other public services better. Know that doing business requires making a profit, but you should not make a profit at all costs.
Thoibao.de (Translated)
