Reported Company:

VinFast Auto Ltd

Researcher Company:

Hunterbrook Media

Price at Report Date:

Close Price Day after report date:

4.12

% Decline Day after Report Date:

% Decline vs Yesterdays Date:

-5.3398

Summary

Hunterbrook Media published an investigative report on VinFast (NASDAQ:VFS), a Vietnamese electric vehicle manufacturer, highlighting the company’s financial struggles, production delays, and questionable business practices, including reliance on sales to related companies. The report scrutinizes VinFast’s ambitious global expansion plans, poor sales performance, and the significant challenges it faces in the competitive EV market.

Who is VinFast Auto Ltd.?

VinFast, a subsidiary of Vingroup, is a Vietnamese automaker founded in 2017. The company initially aimed to become a global leader in electric vehicles but has faced numerous challenges, including production delays, underwhelming sales, and heavy reliance on its parent company’s resources.

Key Points from Report

Unfulfilled Promises

• VinFast announced a $4 billion factory in North Carolina, expected to generate 7,500 jobs, but progress has been minimal, with no construction workers present at the site during a February visit.
• VinFast’s projected factory completion has been pushed to 2025, while other companies, like Hyundai, are ahead of schedule.

Struggling Sales and Financial Woes

• VinFast’s central plant in Hai Phong, with a 300,000 car capacity, only produced 35,000 cars in 2023, mostly sold to related companies.
• Of 3,118 EVs shipped to the U.S., only 265 were registered as sold by year-end 2023.
• VinFast’s SPAC listing on Nasdaq initially valued at $23 billion, now sees its stock value down 95%.

Questionable Business Practices

• Most of VinFast’s car sales were to subsidiaries of its parent company, Vingroup, raising concerns about inflated demand.
• The company has been accused of suppressing criticism, with reports of arrests and the removal of negative online content in Vietnam.

Activ8 Finance Analysis

The Hunterbrook Media report raises significant red flags about VinFast’s operations, particularly its reliance on related-party transactions and the lack of progress in its promised manufacturing capabilities. There have been clear issues; considering the company’s financial struggles, delayed projects, and potential overstatement of demand. The suppression of criticism and questionable business practices in Vietnam further complicate the outlook for VinFast.