VinFast's 2024 revenue rises by 58%, net loss up 38%

Vietnamese electric vehicle (EV) manufacturer VinFast has published its unaudited financial results for the fourth quarter and full year of 2024.

Its total revenue for 2024 reached 44,019.6 billion dong (around US$1.81 billion), up 57.9% year-on-year.

However, the company reported a net loss of 77,354.9 billion dong (around US$3.18 billion) for the year, reflecting a gross margin of negative 57.4%. Its net loss last year was around US$2.3 billion, up about 38.3%.

A one-time fee for a free charging program, amounting to 5,900 billion dong (around US$242.5 million), contributed to this gross loss.

For the entire year, the company delivered 97,399 EVs, which marks a 192% rise compared to 2023. In the fourth quarter of 2024, VinFast delivered 53,139 EVs, representing a 143% increase from the previous quarter.

E-scooter deliveries totaled 70,977 in 2024, a 1% increase from the prior year, with 31,170 units delivered in Q4 alone.

🔗 Source: VinFast

🧠 Food for thought

1️⃣ EV growth trajectories clash with profitability challenges

VinFast’s impressive 192% year-over-year growth in deliveries reveals the potential of emerging EV manufacturers, but comes with substantial financial hurdles.

Despite delivering 97,399 vehicles in 2024, the company posted a significant net loss of US$3.18 billion, highlighting the difficult economics of scaling EV production 1.

This financial picture mirrors broader industry patterns where growth doesn’t automatically translate to profitability. For instance, Rivian reported losses of approximately $1.3 billion in Q3 2023 despite similar delivery volumes 2.

VinFast’s heavy reliance on founder funding ($2.1 billion commitment) contrasts sharply with its limited cash reserves (less than $200 million compared to Rivian’s $9 billion), illustrating the capital-intensive nature of EV manufacturing 2.

The pattern of substantial losses while pursuing growth appears common among EV startups, as even established players struggle with profitability while expanding production capacity.

2️⃣ Global EV market undergoes regional fragmentation

Global EV adoption is progressing at dramatically different rates across regions, creating a fragmented market landscape that VinFast must navigate.