Successfully secured $95.5 million through bond offering by VinFast

Successfully secured $95.5 million through bond offering by VinFast

### VinFast's Financial Status and Recent Bond Issuances

In a significant move, Vietnamese electric vehicle manufacturer VinFast has successfully issued VND2.5 trillion (US$95.5 million) in bonds, as approved by the Hanoi Stock Exchange and backed by a payment guarantee from its parent company, Vingroup.

#### Current Financial Status

The first quarter of 2025 saw a notable increase in VinFast's revenue, reaching VND152,400 billion (approximately $6.56 billion), marking a 149.9% year-over-year growth. During the same period, the company delivered 36,330 electric vehicles, representing a 296% increase from the previous year, and e-scooter deliveries surged by 473% to 44,904 units. Despite this growth, VinFast reported gross losses of VND5,060 billion (approximately $213 million) and net losses of VND7,124 billion (approximately $302 million). However, the company's gross profit margin improved to negative 35.2%, indicating operational efficiency improvements.

#### Recent Bond Issuances and Liabilities

The bond issuance by VinFast is non-convertible and not accompanied by warrants. The bond issuance is through the release of the VIF12502 bond series, with a maturity period of three years and will mature on June 30, 2028. The obligation to repay the bonds is solidified due to the guarantee provided by Vingroup, using assets owned by the company to back the bond issuance.

VinFast's recent financing activities suggest a strategic reliance on debt to fuel growth. The company has secured a $510 million private credit loan from Deutsche Bank AG and SeaTown Holdings International, which supports VinFast's expansion into the global EV market, particularly in Southeast Asia. Prior to this, VinFast obtained a $114 million syndicated loan from Bank Negara Indonesia and Maybank for its Indonesian factory. The company is also in talks with Indian lenders for a $200 million loan to tap into India's car market.

As of May 31, 2025, Vingroup had disbursed VND80,000 billion (approximately $3.4 billion) in loans to VinFast, which may impact VinFast's liabilities but preserves equity ownership.

#### Equity and Ownership

VinFast is a subsidiary of Vingroup JSC, and its strategic financing approaches are designed to maintain ownership while pursuing aggressive expansion plans. As of December 31, 2024, VinFast's equity stood at VND10.96 trillion (approximately $470 million), a decrease of VND4.29 trillion compared to the previous year. The company's stock (VFS) has underperformed in 2025, reflecting broader volatility in the EV sector. However, a successful expansion in Southeast Asia could potentially boost stock performance.

In late May, VinFast repurchased nearly VND2.05 trillion (approximately $86.7 million) worth of principal and interest from four previous bond issuances. Total liabilities as of the end of 2024 amounted to VND202.01 trillion (approximately $8.67 billion). Cumulatively, the company's losses reached VND129.79 trillion (approximately $5.6 billion) by the end of 2024. Other payables surged by 44% to VND149.19 trillion (approximately $6.4 billion). VinFast's bond liabilities declined to VND13.54 trillion (approximately $578 million).

The bonds issued by VinFast in May 2022 had a maturity of 36 months and an interest rate of 9.26% per year. Bank loans decreased from VND42.59 trillion (approximately $1.8 billion) to VND39.28 trillion (approximately $1.7 billion) from 2023 to 2024.

This news article provides an overview of VinFast's financial status and recent bond issuances. The company's aggressive expansion plans are being supported by strategic financing approaches, which may impact its liabilities but position VinFast as a scalable player in the global EV sector.

1. The global electric vehicle market may see a new competitor emerge, as VinFast, an Vietnamese electric vehicle manufacturer, looks to AI and industry advancements to streamline its operations and reduce losses, with the aim of becoming financially sustainable in the automotive sector.
2. The AI-driven optimization of manufacturing processes in the industry could play a significant role in reducing costs for original equipment manufacturers (OEMs) like VinFast, as they race to keep up with growing demand for affordable, high-quality electric vehicles in transportation markets worldwide.
3. With the securing of financial backing through bond issuances, strategic lending, and parent company Vingroup's support, VinFast is poised to expand its operations beyond Vietnam, potentially disrupted traditional automotive players in Southeast Asia and beyond with its innovative electric vehicle solutions, backed by cutting-edge AI and finance.

Read also: