VinFast’s Q3 revenue reached VND 12,326 billion, a 49% year-on-year increase, driven by a surge in vehicle deliveries in September.
VinFast delivered nearly 22,000 electric cars in the third quarter. Photo: Phuong Lam.
According to its recently released Q3 financial report, VinFast Auto Ltd. (Nasdaq: VFS) delivered 21,912 vehicles during the quarter, marking a 115% growth compared to the same period last year. This helped the company achieve a revenue of VND 12,326 billion, up 49%.
In September alone, VinFast delivered a significant number of vehicles in the Vietnamese market, making it the best-selling automotive brand for the month.
However, the EV manufacturer reported a gross loss of VND 2,957 billion in Q3. On a positive note, this represents a 46% reduction in gross loss compared to the previous quarter. Gross profit margin also improved from -63% in Q2 and -27% in Q3 2022 to -24% in the latest quarter.
After deducting expenses and taxes, VinFast recorded a net loss of VND 13,251 billion, a 15% decrease year-on-year.
Le Thi Thu Thuy, Chairwoman of VinFast, attributed the improved Q3 performance to strong business results in September. “We aim to close 2024 on a high note, achieving our target of delivering 80,000 vehicles as planned,” Thuy stated.
In October, VinFast delivered over 11,000 electric vehicles to Vietnamese customers, a 21% increase from September, raising the total number of EVs delivered in Vietnam to 51,000 since the beginning of the year. VinFast continued to lead the market in October and became the best-selling brand over the first 10 months of the year.
Recently, VinFast secured additional financial commitments from its founder Pham Nhat Vuong and Vingroup. Vingroup plans to provide up to VND 35,000 billion in new loans to VinFast’s Vietnam entities by the end of 2026, while Pham Nhat Vuong has pledged VND 50,000 billion in personal funds to support the company.
Additionally, Vingroup will convert its existing loans to VinFast, totaling around VND 80,000 billion, into preferred shares with dividend entitlements.
This financial backing aims to ensure VinFast has sufficient resources to fund its operations and investments. The company targets achieving breakeven and self-sustaining cash flow by the end of 2026.
VinFast remains on track with its global expansion strategy. As of October 31, the company’s worldwide retail network includes 173 car showrooms and 160 electric motorcycle showrooms and service centers, including both VinFast-owned outlets and dealerships.
The company recorded record sales in North America in September. It plans to deliver its VF 9 model in the U.S. and Canada in November.
In Indonesia, VinFast has delivered its VF e34 and VF 5 right-hand drive models and is preparing to open its factory in Subang by 2025. By October 31, VinFast had established 17 dealerships across 15 cities in the country.
In the Philippines, the company launched its VF 3, VF 5, and VF 7 models. By the end of October, it had eight dealerships in six cities.
In India, VinFast is setting up a factory with an annual capacity of 50,000 EVs, with machinery installation underway. The facility is scheduled to commence operations in 2025.
In October, VinFast also entered the Middle East market, launched its brand in the UAE and opened its first dealership in Dubai’s city center.
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Source: Vietnam Insider