The annual general meeting of shareholders of VinGroup (VIC) took place on the morning of May 17. This is the meeting where Pham Nhat Vuong has to answer about the numbers in the prospectus report submitted to the US Securities Exchange Commission (SEC). Accordingly, the electric vehicle manufacturing company of VinGroup has recorded a cumulative loss of $4.7 billion after more than 5 years of participating in the market.
This year, the shareholders’ meeting took place just a few days after VinFast, a member unit in charge of the industrial segment of VinGroup, announced that it would list in the US, through a merger transaction. At the end of April, VinGroup and Pham Nhat Vuong announced to inject another $2.5 billion to VinFast, including a grant of $1.5 billion, the rest VinFast borrows for 5 years, to supplement business capital.
There are opinions questioning why VinGroup makes cars. Car production is too difficult, not to mention that VinGroup started making cars with zero. Vuong replied that the reason for starting this project did not come from business purposes, but because he wanted to contribute to the society. If it’s just for making money, VinGroup’s leadership would not to plunge into a difficult field such as automobile manufacturing.
It is known that for many years under the rule of the Communist Party, Vietnam has been criticized for not being able to make a screw. And indeed, Vietnam cannot make the license plate screw because this screw rusted after a very short time. It is the face of the regime that, under its grip, suppresses creativity, has made Vietnam’s brainpower so bad.
Vuong said: “VinGroup decided to do VinFast because of patriotism, without any intention. When we are successful, it is our responsibility to contribute to the country, building a high-tech, high-class brand and influence on the international market.”
It seems that Mr. Pham Nhat Vuong has abused the word “patriotic.” In fact, Vuong loves the Party more. The establishment of VinFast Company to prove to the world that Vietnam can also produce cars, only helps cure the shame of the Communist Party. As a result, the car was not of good quality and the customer had to bear the damage. Someone were burned along with VinFast car, it was pitiful.
The human source is poor, so it has to hire managers and foreign experts at high prices. This leads to, the product price of VinFast is very high, on par with brand-name cars like Toyota, Honda, Hyundai etc… but the quality is on par with Chinese goods.
So far, VinFast has burned $157 million per month. With a business like this, Pham Nhat Vuong is completely unable to determine when VinFast will be profitable. The price to buy prestige for the Communist Party is too high, having to burn hundreds of millions of dollars per month, in which, there is a lot of money from investors.
Investors who are contributing capital to VinGroup need to be wise at this time. The purpose of the business is to make money for investors, not to burn investors’ money into a field with no hope. Pham Nhat Vuong is serving investors’ money? He is serving the Party’s vanity, so investors should not let him continue to burn their money.
In fact, Mr. Vuong’s investment in VinFast has two purposes, the first one is to make a profit (as a businessman, the number one purpose is money, whoever says no for money is a fallacy). However, after 5 years, Vuong is stuck in finding a way out for VinFast, so now he clings to the word “patriotic” to answer difficult questions from shareholders.
Communists are very tricky, they gave VinGroup the opportunity to grow and now they want VinFast to serve their extravagant intentions. Now is the time for investors to flee, because if VinGroup cannot satisfy the greed of the Communist Party, VinGroup will most likely be collapsed.