Vietnam VinFast’s challenges pose risk to Vingroup

Struggling business: A VinFast electric car on a street in Hanoi. Nearly all of the company’s retail sales in Vietnam are aided by hefty discounts offered through a joint marketing campaign with Vinhomes, according to Reuters. — AFP

AS Vietnam’s biggest conglomerate Vingroup doubles down on its electric vehicle (EV) business with ambitious global expansion plans, it faces growing financial risks stemming from loss-making unit VinFast Auto.

VinFast’s rapid growth has hinged on sales to affiliated companies that are set to continue this year, according to Reuters’ analysis of a recent securities filing and information provided by the firm, as it struggles to attract retail buyers and faces weakening global EV demand.