- VinFast delays US plant opening.
- Asian expansion accelerates.
- Financial challenges persist despite strategic shifts.
Pumping the brakes in the USA
VinFast, the Vietnamese automotive upstart, is tapping the brakes on its American dream. They announced a three-year delay for its US factory launch, opting instead to fast-track its Asian facilities in Indonesia and India.
This strategic pivot comes amid challenging market conditions and lukewarm reception in the United States, where VinFast sold a mere 265 cars last year.
Asian markets in the driver’s seat
The EV maker is now setting its sights on greener pastures in South and Southeast Asia. Both regions boast low EV adoption rates – 6.4% in India and 1.7% in Indonesia – presenting ample room for growth.
VinFast’s Indonesian and Indian plants, each with an initial 50,000-vehicle annual capacity, are slated to open in 2025, serving not only domestic markets but also exporting to neighboring countries.
Despite ambitious plans, VinFast faces an uphill battle financially. The company has accumulated losses of $7.7 billion and relies heavily on injections from parent company Vingroup and its billionaire founder, Pham Nhat Vuong.
To attract more investors, VinFast aims to increase its Nasdaq free float to 10-20% by year-end.
However, the firm’s market value has plummeted by over 95% since its peak last August, highlighting the rocky road ahead for this Vietnamese EV contender.
To read the original article: https://www.techinasia.com/vinfast-hits-brakes-plant-opening-accelerates-launch-asia-facilities
