Vietnamese electric vehicle manufacturer VinFast has announced a significant increase in vehicle deliveries, leading to a tripling of revenue in the first quarter compared to the same period last year. However, the company also reported a 3.5% rise in net loss, reflecting the challenges of the global economic uncertainty and intense price competition in the automotive market.
VinFast, backed by Vietnam’s largest conglomerate Vingroup, remains optimistic about its prospects, maintaining its goal of delivering 100,000 electric vehicles (EVs) in 2024. Chairwoman Thuy Le acknowledged the short-term challenges posed by the global economic and geopolitical instability but expressed confidence in the company’s ability to navigate these challenges.
Despite the uncertain market conditions, VinFast’s shares showed a positive trend, rising 2.6% to $3.14 in pre-market trading. Founded in 2017 and fully focused on EVs since 2022, VinFast made its entry into the California market last year, delivering nearly 9,700 cars in the first three months of this year.
VinFast’s expansion in the United States includes signing distribution contracts with 10 new dealers, bringing the total number of partners to 16. These new dealers are expected to start sales in the second quarter as the company plans to introduce more models in North America this year.
In the first quarter, VinFast’s revenue more than tripled to $302.6 million compared to the same period last year, although it was 31% lower than in the fourth quarter of 2023. The net loss increased by 3.5% year-on-year but was 12.3% lower than the previous quarter.
Despite a 97% decline in its shares from a peak in August, when it went public, VinFast remains valued at $7 billion. The company continues to focus on its growth strategy and expansion in key markets, aiming to establish itself as a major player in the global EV market.
