Vietnam’s top conglomerate, Vingroup, is ramping up its electric vehicle venture with global ambitions, but financial risks loom from its struggling unit, VinFast Auto Ltd (NASDAQ:VFS).
VinFast’s swift expansion relies heavily on sales to related entities, a trend expected to persist this year despite challenges in attracting individual buyers and amid a downturn in global EV demand, per Reuters’ examination of recent filings and company data.
The results highlight concerns for Vingroup as VinFast incurred losses totaling $5.7 billion in the last three years.
Since VinFast’s U.S. listing in August last year, Vingroup’s stock has plummeted by 38%, while its borrowing expenses have risen.
According to a late March filing with the U.S. Securities and Exchange Commission, VinFast obtained $11.4 ...