VinFast hits $618m in Q1 net loss despite doubling revenue year on year

Photo credit: VinFast

VinFast, the Vietnam-based electric vehicle (EV) manufacturer, has recorded US$618.3 million in net loss in the first quarter of 2024 – more than double its entire revenue in the same period.

At US$302.6 million, the company’s Q1 2024 revenue – while significantly higher on a year-on-year basis – is also a 31% drop from Q4 2023. It did deliver 9,689 EVs in Q1, a 4x year-on-year increase, but is still some ways off its goal of delivering 100,000 EVs by year’s end.

That said, VinFast says it remains “committed” to that goal, and expects the majority of deliveries to happen in the second half of this year.

“While VinFast acknowledges ongoing global economic and geopolitical uncertainties, we view them as temporary hurdles,” said Thuy Le, VinFast’s chairperson, in a statement.

In April, the company – a subsidiary of Vietnamese conglomerate Vingroup – opened its first dealership in Indonesia and announced its plan to open 22 showrooms in Bangkok. That came two months after VinFast opened a US$500-million manufacturing plant in India to support its expansion in the country, as well as across South Asia, the Middle East, and Africa.

On top of the worldwide expansion, the company also has new models on the pipeline, including the VF 3 – its most affordable model – in Vietnam. It also intends to launch the VF 7 and VF 9 SUVs in North America.

However, VinFast recorded US$1.2 billion in annual revenue for 2023, along with US$2.3 billion in net loss.

See also: Vietnamese battery startups eye more green financing to power renewables push