VinFast posts $812m loss in Q2 as EV sales up 172%

Vietnam-based EV maker VinFast reported a net loss of US$812 million for the second quarter of 2025, with revenues up 91.6% year-on-year to US$663 million, according to the company’s unaudited financial results.

The Vietnam-based EV maker delivered 35,837 EVs in the quarter, up 172% from a year earlier, and 69,580 e-scooters and e-bikes, a 432% year-on-year jump.

VinFast held 394 showrooms globally as of June 30, 2025.

The VF 3, VF 5, and VF 6 models made up most of VinFast’s Q2 deliveries in Vietnam, ranking among the country’s top five best-selling vehicles in the first half of 2025.

In India, VinFast opened initial dealerships in Surat and Chennai and began assembling the VF 6 and VF 7 at its new plant in Tamil Nadu.

Deliveries in Indonesia accounted for 5% of its Q2 volume, and in the Philippines, VinFast accounted for 25% of the local EV market in H1 2025, according to industry data.

VinFast signed its first authorized dealership in California with Sunroad Automotive Group, opening a San Diego showroom in August 2025.

🔗 Source: VinFast

🧠 Food for thought

Implications, context, and why it matters.

Scale economics remain the critical hurdle for emerging EV manufacturers

VinFast’s financial trajectory illustrates the challenging path to profitability that newer EV companies face, with the company reporting an $812 million net loss in Q2 2025 despite achieving $663 million in revenue—a 92% year-over-year increase1.
The company’s gross margin improved significantly from negative 62.7% in Q2 2024 to negative 41.1% in Q2 2025, demonstrating that higher production volumes can drive meaningful efficiency gains1.
However, with annual losses projected to exceed $3.2 billion for both 2024 and 2025, VinFast exemplifies how EV startups must endure substantial losses while building the scale necessary for profitability2.
This mirrors Tesla’s early strategy, as VinFast’s CFO explicitly acknowledged their focus on “scaling volumes while being disciplined on costs” rather than immediate profitability1.
The company’s $2 billion investment in an Indian manufacturing plant, despite ongoing losses, shows how emerging EV manufacturers must continue heavy capital investments to achieve the production scale that eventually drives positive unit economics2.

Regional market leadership provides foundation for international expansion

VinFast’s dominance in Vietnam demonstrates how establishing strong home market positions can provide the cash flow and operational expertise needed for global expansion1.
The company secured three of the top five best-selling vehicle positions in Vietnam with its VF 3, VF 5, and VF 6 models during the first half of 2025, with over 70% of deliveries going to individual consumers for four consecutive quarters1.
This domestic success enabled VinFast to achieve 172% year-over-year growth in EV deliveries and expand manufacturing to India, Indonesia, and the Philippines1.
The strategy contrasts with pure global approaches, as VinFast’s regional focus allows for localized production that reduces costs. Their Tamil Nadu plant will have 50,000 annual capacity in its first phase, specifically sized for regional market needs1.
VinFast’s expansion into markets like the Philippines, where it captured 25% of the national EV market in the first half of 2025, shows how regional expertise can translate to success in similar emerging markets1.