VinFast’s quarterly loss widens amid heavy spending on growth
Vietnamese electric vehicle maker VinFast reported a larger net loss for the second quarter as it increased spending on expansion and marketing to support its aggressive growth strategy.
The company posted a net loss of $812 million for the quarter ended June 30, up 15% from the previous quarter. Revenue grew 1.9% from the prior quarter and 91.6% year-on-year to $663 million, News.Az reports, citing Reuters.
Vehicle deliveries rose 172% year-on-year to 35,837 units in the quarter, bringing first-half deliveries to 72,167. Despite this growth, VinFast still has work to meet its annual sales target of 200,000 vehicles. “Normally, deliveries in the first half of the year account for about 30% of the total,” Chairperson Thuy Le told Reuters.
VinFast plans to continue expanding in Vietnam and international markets, including Indonesia, the Philippines, India, and North America. The company remains confident in hitting its 2025 delivery targets and expects to break even by the end of 2026.
Last month, VinFast spun off its research and development assets to founder and CEO Pham Nhat Vuong for $1.5 billion to support expansion. It has also ramped up promotional activities in Vietnam, shifted to a dealership-based model to reduce costs, and recently opened a new assembly plant in India, with another facility in Indonesia planned to start production by year-end.
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