Vietnam's VinFast makes triple-digit revenue rise, more EV deliveries

HANOI, Vietnam: VinFast, the Vietnamese electric vehicle manufacturer, reported significant growth in the first quarter of the year, with a notable increase in vehicle deliveries driving a triple-digit rise in revenue compared to the previous year.

Despite a widened net loss, the company remains optimistic about its outlook. It aims to maintain momentum amidst intense price competition and global economic uncertainties affecting the automotive industry.

In the first three months of 2024, VinFast delivered nearly 9,700 electric vehicles, marking a remarkable 444 percent surge compared to the same period last year. Chairwoman Thuy Le attributed this growth to strategic partnerships with affiliate companies, including Green SM and Vinhomes, indicating a promising market demand for their products.

Despite challenges posed by economic and geopolitical instability worldwide, VinFast remains steadfast in delivering 100,000 EVs by the end of 2024.

"VinFast sees the ongoing economic and geopolitical instability globally as a short-term challenge," Thuy said after the earnings release.

"Lower price products to be added in the coming quarters targeting a broader customer base combined with a growing dealership network and expansion to the market will ... help accelerate impact and drive growth in the second half (of the year)," she said.

With a focus on the North American market, VinFast has expanded its distribution network, signing contracts with ten new dealers in the United States, bringing the total to 16. These new agents are expected to commence sales in the second quarter, aligning with the company's strategy to introduce more models in the region.

Despite a decline in VinFast's share price, reflecting broader challenges in the EV sector, Thuy expressed confidence in the company's long-term growth potential. While acknowledging short-term fluctuations, she emphasized that VinFast's value would be properly reflected in its share prices over time.

"EV sector has been facing headwinds since the beginning of the year, VinFast share price just mirrors the sector and it may also be influenced by the relatively small free flow," Thuy said.

"We believe that in the long term, growth potential and the value of VinFast will be properly reflected in the share prices," she added.

In terms of financial performance, the company's first-quarter revenue more than tripled year-on-year to US$302.6 million, although it was 31 percent lower than last year's fourth quarter.

Its net loss rose 3.5 percent to $618 million from a year ago but was 12.3 percent lower than in the previous quarter.