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Vingroup loses $1bn in manufacturing on poor sales of gasoline cars

Vietnamese company makes big investments in shift to EVs

Vingroup's automotive plant in the northern Vietnamese city of Haiphong operated far below capacity during 2021.   © Reuters

HANOI -- Top Vietnamese conglomerate Vingroup suffered a pretax loss of roughly 23.9 trillion dong ($1.05 billion) at its manufacturing segment last year due to sluggish sales of gasoline-powered cars at home and growing investments in the emerging electric vehicle business.

Vingroup's sales of gasoline autos rose 21% to about 36,000 units in 2021. But the group's assembly plant built during 2019 in northern Vietnam is operating far below capacity, as it can produce 250,000 vehicles a year.

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