EV Deliveries Up 115%, Revenue Up 49.3%
In the third quarter of 2024, VinFast delivered 21,912 electric vehicles. This represents a substantial increase of 66% compared to the second quarter of the same year and a significant 115% increase compared to the third quarter of 2023. Notably, B2C deliveries experienced a considerable quarterly increase of 163%, highlighting strong market demand for VinFast’s EVs.
Total revenues were VND12,326,537 million (US$511.6 million) in the third quarter of 2024, representing an increase of 49.3% from the third quarter of 2023 and an increase of 42.2% from the second quarter of 2024.
Gross loss was VND2,957,886 million (US$122.8 million) in the third quarter of 2024, representing a decrease of 45.6% from the second quarter of 2024.
The gross margin in the third quarter of 2024 was negative 24.0%. This represents a significant improvement compared to the negative 27.0% margin in the same quarter of the previous year and the negative 62.7% margin in the second quarter of 2024.
Net loss was VND13,251,944 million (US$550.0 million) in the third quarter of 2024, representing a decrease of 14.8% from the third quarter of 2023 and a decrease of 29.4% from the second quarter of 2024.
Madam Thuy Le, Chairwoman of VinFast, said: “The third quarter’s result was underpinned by a robust September, as we recorded the highest monthly deliveries in our home market, Vietnam. This marks a historic milestone for Vietnam’s automotive industry where, for the first time since we were established seven years ago, a domestic OEM has outperformed international competitors to become the market leader across the passenger vehicle market. We expect to finish 2024 on a strong note and meet our 80,000-vehicle delivery target, as the momentum in Q3 has continued into Q4. Producing high-quality electric vehicles is a complex task, one that requires unwavering dedication and fortitude to navigate ongoing uncertainties. Every day we are learning how to make durable and exciting EVs that will be a key part of the global transition to green mobility. The path to green mobility is challenging, but our commitment to this future is resolute—because the future is, without question, electric.”
Ms. Lan Anh Nguyen, Chief Financial Officer of VinFast, added: “I am pleased to share that Q3’24 was in line with our internal forecast, driven by an acceleration in our top line and an improvement in profitability as gross loss and net loss narrowed significantly. Increasing scale, ongoing BOM and production cost optimization and improved operating efficiencies have already started to have a positive impact on gross margin and will continue to be key drivers for our path to profitability. Our overall liquidity position has been enhanced by the recently announced loans from Vingroup and grants from our Founder, whereby we expect to receive a potential of $3.5 billion injection by the end of 2026.”
The Vietnamese Market Significantly Contributes to Revenue Growth
In September, VinFast recorded robust monthly deliveries in its home market of Vietnam, firmly positioning VinFast as the top-selling car brand in Vietnam for the month. This marked the first time ever that a Vietnamese EV brand outperformed all international competitors to become the market leader in terms of monthly sales.
In October, VinFast delivered more than 11,000 EVs to customers in Vietnam, representing a 21% increase compared to September and bringing total deliveries in Vietnam to more than 51,000 EVs from January 1 to October 31, 2024. This positioned VinFast as the best-selling automotive brand in the Vietnamese market for October and the first ten months of 2024.
In response to increasing demand for affordable EVs and to improve production efficiencies, the Company plans to add a new completely knocked down (CKD) factory in Ha Tinh, Vietnam focusing on VF 3 and VF 5. The factory will be under a long-term lease structure to optimize initial spendings.
The factory targets a maximum capacity of 300,000 EVs per year, subject to demand and general market conditions, with a gradual ramp up in capacity and production overtime. The construction of the factory will begin in early December, and the factory is expected to commence operations in 2025.
VinFast Expands Global Footprint
VinFast continues to expand its global reach. As of October 31, 2024, the Company had 173 showrooms globally for EVs and 160 showrooms and service workshops for e-scooters, including VinFast showrooms and dealer showrooms.
The Company’s acceleration towards a dealership model as part of its international strategy is starting to pay off. September was a record-breaking month for VinFast in North America, driven by a growing dealer network and continuous improvements to its electric vehicles. In November, VinFast started delivering the VF 9 to customers in the U.S. and Canada.
In Indonesia, VinFast has initiated the delivery of its first right-hand drive VF e34 and VF 5, with a growing network of 17 dealerships spanning 15 cities as of October 31, 2024. The Company is also working on its plant in Subang, scheduled to commence operations in 2025.
In the Philippines, VinFast opened reservations for three models – the VF 3, VF 5, and VF 7. As of October 31, VinFast had eight dealer stores in six Philippine cities.
VinFast’s Indian plant, with an annual capacity of 50,000 electric vehicles, is gearing up for equipment and machinery installation. The plant is scheduled to begin operations in 2025.
VinFast also officially launched its brand in the Middle East in October, opening its first dealership in United Arab Emirates, located in downtown Dubai.
VinFast Secures Significant Funding
VinFast has received financial backing from its founder and parent company. VinFast’s Founder and Chief Executive Officer, Mr. Pham Nhat Vuong, and his associated companies intend to provide up to VND50 trillion (US$2.1 billion) in free grants to the Company and its subsidiaries through the end of 2026.
In addition, Vingroup Joint Stock Company intends for it and its subsidiaries (collectively “Vingroup”) to provide VinFast’s subsidiaries incorporated in Vietnam with up to VND35 trillion (US$1.5 billion) in loans through the end of 2026.
Vingroup has approved the plan for additional capital contributions to VFTP, a direct subsidiary of VinFast holding the Company’s EV manufacturing business in Vietnam, by converting up to VND80 trillion (US$3.3 billion) of loans extended by Vingroup to VFTP into preference shares issued by VFTP.
VinFast Poised for Strong Finish to 2024
The Vietnamese Nasdaq-listed electric vehicle manufacturer is optimistic about its performance in the fourth quarter of 2024. Building on the strong momentum from the third quarter, particularly in key markets like Vietnam and North America, VinFast is reiterating its annual delivery target of 80,000 vehicles.
To ensure sustainable growth, VinFast remains committed to prudent financial management and cost optimization. The Company is actively working to improve its profitability while continuing to expand its global footprint.
