Vietnam’s ambitious electric vehicle maker VinFast reports massive losses in 2025, forcing an aggressive pivot to overseas markets for lifeline funding and growth
The VinFast financial crisis deepens as the company burns cash faster than expected. In the first nine months of 2025, VinFast reported a net loss of over $2.4 billion. Revenue grew, yet deliveries remain low compared to bold targets. Founder Pham Nhat Vuong continues to inject personal funds, but analysts warn this cannot last forever.
Domestic demand in Vietnam stays weak. High prices and limited charging stations keep local buyers away. Therefore, VinFast shifts focus abroad.
Aggressive Global Expansion Drive
VinFast now builds factories in North Carolina, India and Indonesia. The American plant, delayed several times, finally targets production start in 2026. Meanwhile, the company already ships vehicles to the United States, Canada and several European countries.
Dealers in California and Europe report slow initial sales. However, VinFast offers aggressive leasing deals and long warranties to attract customers. The brand positions itself against Tesla and BYD with lower pricing and unique battery subscription models.
Survival Depends on Foreign Success
The VinFast financial crisis will likely worsen before it improves. Most experts predict another heavy loss year in 2026 unless overseas deliveries surge. A successful IPO top-up or fresh investment round appears essential by mid-2026.
If North American and European volumes reach 100,000 units annually by 2027, cash flow could turn positive. India, with its new Tamil Nadu plant, offers additional hope because of government EV incentives and lower labour costs.
Vietnam watches closely. Success abroad would boost national pride and attract more foreign investment into local manufacturing. Failure, however, might force painful restructuring or even government bailout talks.
The VinFast financial crisis highlights the brutal reality of the global EV race. Ambitious newcomers need deep pockets and flawless execution. For now, VinFast bets everything on foreign markets. The next eighteen months will decide whether Vietnam’s EV champion survives and thrives or becomes a costly lesson.
