VinFast gets EV reality check as shares plunge 65%

Vietnam company’s 2024 slide underlines challenges to realising ambitious plans

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A 65 per cent slide in VinFast Auto's stock in 2024 underlines the challenge faced by the electric-vehicle (EV) maker backed by Vietnam's richest man.

It plans to almost triple vehicle deliveries in 2024 to 100,000, but had barely hit a tenth of that goal in the first quarter.

Meanwhile, it will need to raise capital for global expansion, given plans for factories in North Carolina, Indonesia and India.

"VinFast is too ambitious and could continue to face challenges as it expands rapidly overseas," said Bloomberg Intelligence analyst Ken Foong. "They could do well in Vietnam as there isn't too much competition there, but in the US and other regions, there might be more competition."

The EV maker controlled by Mr Pham Nhat Vuong is trying to break into the global market at a time when Chinese competitors are increasing exports and after Tesla slashed prices in April.