VinFast “burning furnace” is hungry for dollars, Vuong locks his pocket, group’s end is coming?

If VinFast is promising, why did Mr. Pham Nhat Vuong lock the “safe box”?

For a long time, folk have been passing on the famous saying of the late President of the Republic of Vietnam that, “don’t listen to what the Communists say, look at what the Communists do.” In previous reports, has analyzed that billionair Pham Nhat Vuong’s VinGroup is a copy of the Communist government in the economic field. Also authoritarian, also manipulating the media, also using the police to silence honest critics etc… Therefore, has long been closely following VinGroup’s breath and reflecting its negative side, in order to limit loss to investors.

In a difficult situation in the US, VinFast had to cut staff to limit its spending. VinFast has burned money from 2017 until now without having profit. Having been burning $4.7 billion but VinFast is still not profitable. It is unclear where Mr. Pham Nhat Vuong will get money for VinFast to burn next? That is the question posed. And the answer is, Mr. Pham Nhat Vuong can only use investors’ money, he is not stupid to use his own money for the company.

VinFast’s recent moves in the international market such as delaying its vehicles handover schedule to the end of February and restructuring operations in the US and Canada, etc. have attracted the attention of observers and international media. The US television channel CNBC asked a question to Ms. Le Thi Thu Thuy – CEO of VinFast, Ms. Thuy said that she is still following the car production roadmap in 2024, even though the company has just restructured its operations in North America. Ms. Thuy said: “We are in the process of preparing the site for the factory in the US. The production line will start up in early 2024, as previously planned. The initial capacity of the plant is about 150,000 vehicles per year.

What Ms. Thuy said is what will happen in the future, it can happen if VinFast IPO attracts capital in the US, and cannot if it does not get investment. Until now, capital has not been available, while VinFast has reduced the scale in North America, it is unknown whether VinFast will continue to pursue the plan or not. Ms. Le Thi Tuy Thuy said that, but believe it or not is the investor’s choice.

Recently, Bloomberg quoted Ms. Le Thi Thu Thuy as saying that Pham Nhat Vuong has no plans to invest personal money in this electric car company. Mr. Vuong currently has assets of $4.1 billion and is the Chairman of VinGroup – a group operating in many fields, including: real estate, amusement parks and education. VinFast was founded in 2017 by Mr. Vuong, and by September 2022, the owners and lenders of this electric vehicle manufacturer, had invested about $7.5 billion to finance operating costs. and capital costs.

VinFast lost $1.3 billion in 2021 and lost $1.5 billion in the nine months to September 30, 2022, according to filings with the US Security Exchange Commission (SEC) ahead of its planned IPO. The filing also said that the company intends to continue to report operating and net losses in the short term, while there is no guarantee for long-term profits or not.

So far, VinFast is still losing money, which means that VinFast is still burning money. Pham Nhat Vuong decided to “lock the safe“, not using personal money for VinFast, but using investors’ money. So the question for investors who are giving money to Vin is that, even Mr. Pham Nhat Vuong locked the safe, why do you keep throwing your money in for VinFast to burn? Or do you know more about VinFast’s financial health than Pham Nhat Vuong?

Currently, the number of Vietnamese Americans who are “patriotic” in Vin’s style is probably not few. Maybe these people will spend their money to buy shares of VinFast. However, this is a risky gamble. If there is profitable, Mr. Pham Nhat Vuong would not lock his pocket like that. Pham Nhat Vuong’s act of “locking the safe” is a way of “risk management” for his huge fortune. VinFast will die if it cannot raise capital on the US stock market. (Translated)