Photo credit: VinFast
VinFast, the Vietnam-based electric cars manufacturer, reported US$437 million in revenue for the fourth quarter of 2023. This brings its total revenue for the financial year ending December 31, 2023 to US$1.2 billion – a 91% boost from a year ago.
The company, a subsidiary of Vietnamese conglomerate Vingroup, attributed the increase to higher sales volumes and an improved product mix. VinFast delivered 34,855 EVs – a whopping 374% year-on-year upsurge – and 72,468 e-scooters throughout 2023.
Net loss was US$2.3 billion in 2023, representing an increase of 14.7% from 2022. For the quarter, the figure stood at US$650 million, a rise of 1.3% year on year.
Meanwhile, its gross loss reached US$174.9 million in Q4 2023, adding up to a US$551.6 million total for the whole year. At -46%, the company gross margins showed “significant improvement” from -82% in 2022.
“We’re already seeing positive signs in key markets like the U.S. and Indonesia,” said Thuy Le, chairperson of VinFast’s board of directors, in a statement. “Fueled by this momentum and a recovering consumer sentiment, we’re setting an ambitious target of delivering 100,000 vehicles in 2024.”
VinFast also noted its “solid foundation” in the US, Canada, and several European countries. By the end of 2024, it expects to have 130 points of sales in North America for a global total of 400.
The company’s priority for this year, however, is Asia. It got the green light to expand in Indonesia from President Joko Widodo in January and has inked deals with five local auto dealers.
VinFast also plans to begin operations in the Philippines this year, while also building a US$500 million EV manufacturing facility in the Indian state of Tamil Nadu. The latter’s output will be exported to South Asia, the Middle East, and Africa, in addition to the domestic supply.
Apart from its home market, VinFast is present in the US, Canada, Germany, France, and the Netherlands.
See also: Vingroup founder’s EV play revs up Vietnam’s ride-hailing race
Editing by Putra Muskita and Eileen C. Ang
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