VinFast, the car company started by Vietnamese conglomerate VinGroup, is hemorrhaging money and it would now seem that the market have lost patience with the conglomerate as it continues to throw good money after bad in the forlorn hope that the company can turn itself around, well at least according to a report I read on reddit.
The loses are so staggering, an estimate of USD2billion a year for ten years to keep them afloat, they have lead a leading rating agency to list their more profitable units to ‘junk’ status along with its planned USD500 million international bond issue.
VinFast has been in trouble for a number of years particularly after they crashed out of the US market, dismissing the fall from grace merely as a matter of differing taste. Pham Nhat Vuong, the Business Magnate that founded the Group and VinFast, has sanctioned the total investment of almost USD14 billion into the EV manufacturing arm to date and have made a commitment to ready a further USD3.5 billion. All of this in the face of stiff opposition from investors and shareholders.
VinFast shifted about 51,000 EV’s in the country last year, making it the top selling car brand for the EV sector. This is slightly below the total for Toyota who shifted 57,500 in the same period. This lead VinFast to lose a total of USD373 million according to a report.
This is less than half the loss of 2023 but it would seem that like in other countries there is little appetite for EV’s in Vietnam.
