VinFast Achieves Record Sales in US, Building 300,000 Cars/Year Factory in Ha Tinh

On November 26 in Singapore, VinFast Auto Ltd. (Nasdaq: VFS) announced its unaudited financial results for Q3.

The company reported delivering a total of 21,912 vehicles, showing a 115% increase compared to the same period last year, achieving revenue of USD 511.6 million, up 49.3% year-over-year.

In Q3, VinFast recorded a gross loss of VND 2,957 billion, marking a 45.6% decrease from the previous quarter. The gross profit margin improved to negative 24%, compared to negative 62.7% in the previous quarter and negative 27% in the same period last year.

The net loss in Q3 was VND 13,251 billion, showing a 29.4% reduction compared to Q2/2024 and a 14.8% decrease from the same period last year.

Mrs. Le Thi Thu Thuy, Chairwoman of VinFast's Board of Directors, shared: "VinFast's Q3 results were driven by strong business performance in September. We achieved the highest monthly vehicle delivery numbers in the domestic market."

Mrs. Thuy expressed optimism that VinFast will end the year on a positive note, reaching their target of delivering 80,000 vehicles as previously set, supported by the strong growth momentum continuing from Q3 into Q4.

Mrs. Nguyen Thi Lan Anh, VinFast's Chief Financial Officer, reported that during this period, the company's revenue showed strong growth, with improved profit margins due to significant reductions in both gross and net losses.

"The benefits from increased scale, optimized production costs, and material cost optimization have created positive impacts on gross margins, and will be key drivers on our path to profitability," Mrs. Lan Anh stated.

According to her, VinFast's overall liquidity position has improved thanks to expected loans from Vingroup and anticipated funding from founder billionaire Pham Nhat Vuong - totaling $3.5 billion from now until 2026.

According to reports, in September, VinFast achieved significant vehicle deliveries in the Vietnamese market, becoming the best-selling brand domestically.

Moving into October, VinFast delivered over 11,000 electric vehicles to Vietnamese customers, representing a 21% increase compared to September and bringing the total number of electric vehicles delivered in Vietnam since the beginning of the year to 51,000 units.

To meet the growing demand for lower-priced vehicle segments while optimizing efficiency, VinFast plans to expand its manufacturing operations in Ha Tinh province. The new facility is expected to specialize in producing affordable electric vehicle models VF 3 and VF 5, catering to the mass market segment and strengthening VinFast's position in the domestic automotive industry. This expansion aligns with the company's strategy to make electric vehicles more accessible to a broader range of consumers while maintaining operational efficiency.

VinFast plans to implement a long-term leasing model to optimize initial investment cash flow.

The CKD (assembly) plant is designed with a maximum capacity of up to 300,000 electric vehicles annually, with flexibility to adjust capacity according to market fluctuations to meet demand. Construction of the plant is scheduled to begin in early December 2024 and start operations in 2025.

VinFast continues to closely follow its global expansion strategy. As of October 31, the company's global retail network has reached 173 car showrooms and 160 electric motorcycle showrooms and service centers, including both showrooms and dealerships.

VinFast's expansion and strengthening of its sales model through dealership channels has shown promising results. The company reported record sales in the North American market in September, thanks to its growing dealer network and product improvements. However, specific figures were not disclosed.

VinFast has also begun delivering the VF 9 model in the United States and Canada in November. The company's commitment to expanding its global presence demonstrates its determination to become a significant player in the international electric vehicle market. This strategic approach aligns with their goal of making sustainable transportation more accessible while maintaining strong market presence in key regions.

In Indonesia, VinFast has delivered right-hand drive versions of the VF e34 and VF 5 models and is preparing to launch its manufacturing facility in Subang by 2025. As of October 31, VinFast has successfully opened 17 dealership stores across 15 cities in the country.

In the Philippine market, VinFast has launched sales of the VF 3, VF 5, and VF 7 models. By October 31, VinFast had established 8 dealership locations across 6 Philippine cities.

VinFast's manufacturing plant in India, with a planned capacity of 50,000 electric vehicles annually, is currently in the equipment and machinery installation phase. The facility is expected to begin operations in 2025.

VinFast also officially launched its brand in the Middle East in October, opening its first dealership in the UAE, situated in central Dubai.

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Source: Business & Enterprise (doanhnhanvn.vn)

Original article: https://doanhnghiepkinhdoanh.doanhnhanvn.vn/vinfast-dat-doanh-so-ky-luc-tai-my-xay-nha-may-cong-suat-300000-xenam-o-ha-tinh-4220241126195735794.htm