Automaker VinFast not subject to lawsuits in US: executive

Electric vehicle (EV) maker VinFast under Vietnamese private conglomerate Vingroup is not currently subject to any lawsuits in the U.S., said Ho Ngoc Lam, head of Vingroup's legal board and deputy CEO in charge of legal issues at VinFast.

The executive made the statement on Friday, responding to reports that U.S. law firms Robbins Geller Rudman & Dowd and Pomerantz were processing investigations into VinFast regarding potential violations of U.S. federal securities laws.

In particular, the two firms focused on whether VinFast and some of its top executives made false and/or misleading statements and/or failed to disclose material information to investors.

Activities of the two law firms are seeking customers for lawsuits and such activities are not equivalent to VinFast making violations nor VinFast being sued, the executive clarified. The move is a common practice for law firms to reach out to potential customers, especially by targeting major brands or businesses, seeking out a cause to make lawsuits, and seeking customers via advertisements.

VinFast is operating normally, and the firm stands ready to handle any lawsuits since the beginning of its operation in the U.S., as lawsuit is a casual practice in the American nation, Lam added.

Lawyer Truong Thanh Duc, head of Hanoi-based Anvi Law Firm, said a lawsuit is a casual activity in the U.S., while a lawsuit in Vietnam is often resulted from abnormal action, suggesting that relevant sides should check information considerably.

VinFast shares, listed on the Nasdaq as VFS, closed down 5.9% at $5.41 each on Friday.

VinFast had recorded about 10,000 reservations in the U.S. for its VF 8 and VF 9 electric vehicles from the VF8 debut in late 2021 to August 31, 2023. VinFast, listed on the Nasdaq as VFS, disclosed the information in a filing dated September 21 sent to the U.S. Securities and Exchange Commission (SEC). The firm is accepting orders for 17,000 VF 8 and VF 9 models globally. Overall, VinFast has received 18,000 reservations for its VF e34, VF 5, VF 8, and VF 9 vehicles.

VinFast delivered 9,535 EVs in Q2/2023 and 1,780 in Q1/2023 globally, according to the company’s unaudited report sent to the Nasdaq. E-scooter deliveries reached 10,182 in Q1/2023 and 9,757 in Q2/2023, VinFast noted.

On this performance, VinFast made a total revenue of $334.1 million in Q2/2023, up 131.2% year-on-year and quadruple that of Q1/2023. Its net loss improved to $526.7 million, down 8.2% from Q2/2022.