Huge losses weigh heavily as VinFast (VFS.US) founder's son steps in as chairman amid lawsuit in the US.

Vietnamese electric vehicle manufacturer VinFast (VFS.US) has appointed the son of founder and billionaire Pham Nhat Vuong as chairman. According to a company statement, its board of directors has appointed Pham Nhat Quan Anh to succeed Le Thi Thu Thuy as chairman. The latter will continue to serve as Vice Chairman of the parent company Vingroup, focusing on the group's broader business. Pham Nhat Quan Anh previously served as Vice Chairman and Executive Vice President of VinFast Trading and Production JSC. The statement said that the appointment will take effect from May 23, aiming to support VinFast's global expansion. This management change at VinFast comes as the carmaker strives to curb losses. Due to significant investments in overseas expansion, the company reported a loss of nearly $4 billion last year. Earlier this month, the company announced plans to sell two factories in Vietnam as part of a plan to reduce around 182 trillion dong (approximately $8.69 billion) of debt and liabilities and potentially accelerate the path to profitability. Meanwhile, VinFast is facing growing challenges in the US market. Last week, the state government of North Carolina sued VinFast, alleging that the company had violated agreements related to its planned electric vehicle and battery manufacturing plant. VinFast stated that it is reviewing the lawsuit and will respond after receiving "all relevant materials provided by the state government." According to the agreement reached with North Carolina, VinFast must meet construction progress goals, have the plant operational by July 2026, and create 1750 jobs by the end of 2026. The agreement also stipulates that if the company fails to meet the performance requirements, the state government has the right to reclaim the project site.