Vietnamese electric-vehicle maker VinFast is still burning cash even as sales rise. The Nasdaq-listed firm posted a net loss of US$812 million (C$1.1 billion) for the April-to-June quarter, 15 percent worse than the prior three months, while revenue reached US$663 million, up 92 percent year-on-year.
First-half deliveries hit 72,167 vehicles but the company must more than double that figure to meet its 200,000-unit 2025 goal.
Founder injects more capital
Founder Pham Nhat Vuong continues to bankroll the loss-making brand. In August he agreed to buy VinFast’s research and development arm for US$1.52 billion (C$2.1 billion), providing fresh funds while leasing the intellectual property back to the automaker.
The transaction follows roughly US$17 billion in support from Vuong, Vingroup and affiliates since 2017. Chairwoman Thuy Le said, “the gross margin is improving,” even as losses deepen. She remains confident about breaking even by late 2026.
Capacity grows, demand lags
VinFast opened a second domestic plant in Ha Tinh province in June with capacity for 200,000 compact cars each year, supplementing its flagship Hai Phong facility and pushing planned Vietnamese capacity close to one million units. Overseas, the firm has started assembly in India and targets Indonesia by year-end, but its North Carolina plant has slipped to 2028, reflecting slower United States demand.
Promotions and new models helped lift 2024 deliveries to 97,000, yet only about 10,000 were sold outside Vietnam. Losses for that year totalled US$3.2 billion (C$4.3 billion), widening from US$2.4 billion in 2023, and heavy discounts have pushed gross margins below zero.
Chief financial officer Lan Anh Nguyen noted on an April call that “the net loss margin improved to negative 94 percent” once exceptional charges were stripped out.
VinFast is betting that cheaper urban cars and regional assembly hubs will lift volumes enough to turn the tide. For now, rising capacity outpaces market traction, and each factory opening adds fixed costs. Unless export sales accelerate, Vuong’s deep pockets may remain the automaker’s main lifeline well past 2026.