VinFast ($VFS) Drives Vingroup to Sell Profitable Assets Amidst EV Ambitions and Financial Challenge

VinGroup, the Vietnamese conglomerate, is selling off its main businesses, including Vincom Retail and planning to list Vinpearl, to raise funds for its loss-making VinFast EV business. Despite Vincom Retail's strong earnings, VinGroup sold a significant portion of its shares for an estimated $1.5 billion. Founder Pham Nhat Vuong remains committed to VinFast, which sold 9,689 EVs in Q1 2024 and plans to expand in India and Indonesia. However, VinFast faces challenges, including high losses, a heavy reliance on group support for sales, and quality issues leading to recalls. Concerns about VinGroup's cash flow and the delayed completion of its U.S. plant add to the uncertainty.

https://asia.nikkei.com/Business/Companies/Vingroup-guards-red-ink-EV-business-by-letting-go-of-retail-cash-cow