Vietnamese electric vehicle manufacturer VinFast reported a larger third-quarter net loss on Friday, citing heavy spending to expand its market presence and support sales amid intense competition.
The company posted a Q3 loss of 24 trillion dong (S$1.2 billion), up from 13.25 trillion dong a year earlier. Quarterly gross margin was negative 56.2%, compared with negative 24% in the same period last year, driven largely by higher warranty provisions and vehicle production costs, VinFast said.
Shares of VinFast fell more than 5% in premarket trading following the earnings report.
VinFast also secured two loan facilities totaling US$250 million during the quarter to support its ambitious growth strategy, including international expansion, despite tariff pressures and weaker demand in the U.S. market. Analysts noted that taking on additional debt could further pressure the company’s margins as it works to reduce costs by transitioning to a dealership-based model and optimizing its supply chain.
Since its founding in 2017, VinFast has relied on financial backing from its founder, Pham Nhat Vuong, Vietnam’s wealthiest individual. Earlier this month, Vuong pledged to provide up to 50 trillion dong in grants to VinFast and its subsidiaries.
E-scooter and e-bike deliveries also surged more than six-fold in the quarter, following Hanoi’s announcement that petrol-powered motorbikes will be banned in the city center starting mid-2026, VinFast said.