VinFast Auto, a Vietnamese battery electric vehicle (BEV) manufacturer, has recently made a significant financial move by successfully issuing VNĐ 2.5 trillion (US$ 96 million) in bonds through its VIF12502 bond series. This strategic move comes as VinFast aims to strengthen its presence in global markets, particularly in Asia.
The Hanoi Stock Exchange (HNX) confirmed the issuance of a total of 25,000 bonds, each with a face value of VNĐ 100 million. These non-convertible bonds are set to mature on 30th June 2028 and were issued with a payment guarantee backed by VinGroup’s assets, the parent company of VinFast.
In a proactive financial decision, VinFast repurchased over VNĐ 2 trillion worth of three-year bonds from previous issuances in May of this year. The bonds carried an annual interest rate of 9.3% and were due to mature at the end of the month. This move demonstrates VinFast’s commitment to optimizing its financial position and capital structure.
Despite the recent financial activities, VinFast reported a net loss of VNĐ 31.9 trillion in 2024, a significant increase from the VNĐ 18.3 trillion loss reported in 2023. These losses can be attributed to the company’s efforts in introducing new products to the market, establishing a new manufacturing plant in Vietnam, and expanding its footprint in Asia. As of the end of 2024, VinFast’s cumulative losses amounted to almost VNĐ 130 trillion, with total liabilities exceeding VNĐ 202 trillion, as reported by local sources.
VinFast’s strategic issuance of bonds and financial maneuvers reflect the company’s ambition to solidify its position in the global electric vehicle market. By prioritizing expansion in key markets and leveraging its parent company’s assets, VinFast is poised for continued growth and success in the evolving automotive industry.
