VinFast reports net loss despite higher revenue

HANOI: Vietnamese electric vehicle maker VinFast on Wednesday reported a net loss of nearly US$620 million (RM2.9 billion) in the first quarter of 2024 despite a rise in revenue, but maintained an ambitious target for vehicles delivered by the end of the year.

The communist state’s first homegrown car manufacturer is trying to break into the international market, aiming to compete with global EV giants such as Tesla.

VinFast said in a filing to the US Securities and Exchange Commission (SEC) that its revenue for the first three months of the year was US$302.6 million, up nearly 270% from the same period in 2023.

A total of 9,689 VinFast electric vehicles (EVs) were delivered in the first quarter of 2024, a more than four-fold increase year-over-year.

“Out of 9,689 EVs delivered in the first quarter of 2024, 56% were to related parties of the company,” according to VinFast’s SEC filing.

But the firm also reported a net loss of US$618.3 million, up 3.5% year-over-year but down more than 12% from previous quarter.

The company maintained its target of delivering 100,000 EVs this year.

“We remain steadfastly committed to driving continuous improvements across our business,” VinFast chief financial officer Anh Nguyen said in a statement.

“Our focus on materials optimisation, scale advantages and disciplined cost management will be key to delivering sustained value for our shareholders.”

Since early this year, the company has continued to expand its international presence by signing with dealers in Indonesia, Thailand and Oman, as well as beginning construction of an EV factory in India.

Vinfast listed on the Nasdaq in August, hitting headlines around the world as its valuation skyrocketed and then crashed.

The company’s CEO is Pham Nhat Vuong, Vietnam’s richest man and the chairman of VinFast’s parent company Vingroup. – AFP