HANOI — For more than a decade, Vietnamese electric vehicle maker VinFast has burned billions of dollars on ambitious expansion plans. Now, its decision to convert a staggering $7 billion in debt is drawing intense scrutiny from analysts.
According to financial experts, this massive debt restructuring could signal that the company faces severe liquidity pressure. Many investors worry VinFast's rapid growth strategy—backed by huge investments in plants in the United States and other markets—is creating a debt burden that far exceeds its ability to generate cash flow.
VinFast, a subsidiary of conglomerate Vingroup, has long been seen as a symbol of Vietnam's tech ambitions. However, persistent losses in recent years and heavy reliance on parent company funds and loans have made its financial outlook uncertain. The latest debt transfer may be a last-ditch effort to avoid default before achieving mass production and sustainable revenue.
