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VinFast Reports Strong Financial Performance in Q3 2024

VinFast Auto Ltd., a prominent player in the electric vehicle (EV) space, has announced its unaudited financial results for the third quarter of 2024. The company, known for its commitment to making electric mobility accessible to all, reported that it delivered a total of 21,912 vehicles during this quarter, marking an impressive 115% increase compared to the same period last year.

This surge in delivery numbers is complemented by robust revenue growth, with total earnings reaching $511.6 million, up 49.3% year-over-year. Notably, VinFast has not only demonstrated substantial growth in vehicle deliveries but also solidifies its position as the top-selling automotive brand in Vietnam for September and October.

Continuing Momentum in Vietnam

The third quarter results were significantly propelled by a record-breaking performance in the Vietnamese market. Madam Thuy Le, Chairwoman of VinFast, highlighted that their September results were particularly strong, establishing a historic milestone for the local automotive industry. For the first time, a domestic manufacturer outperformed international brands, securing the top spot in the Vietnam passenger vehicle market.

In fact, over the period from January to October 2024, VinFast's total EV deliveries in Vietnam crossed 51,000, further cementing their status as the best-selling automotive brand. This momentum is expected to carry into Q4 as the company aims to meet its ambitious target of delivering 80,000 vehicles by year-end.

Focus on Scaling Production Capacity

To cater to the rapidly growing demand for affordable EVs, VinFast is making strategic plans to increase its production capacity. A new completely knocked down (CKD) factory is set to be established in Ha Tinh, Vietnam, with a potential maximum capacity of 300,000 EVs per year. Construction on this facility is scheduled to commence in early December 2024, and operations are projected to start in 2025, reinforcing VinFast's commitment to optimizing production efficiencies.

Global Expansion Efforts

VinFast’s commitment to growth is not confined to Vietnam alone; the company is actively expanding its footprint globally. By the end of October 2024, VinFast had raised its number of showrooms globally to 173 for EVs and 160 for e-scooters. This increase in retail presence supports their international strategy as they continue to see significant sales in both North America and Indonesia.

This past November marked the beginning of VF 9 deliveries in the U.S. and Canada, while the company also initiated its first right-hand drive VF e34 and VF 5 deliveries in Indonesia, coupled with a growing network of dealerships across key regions.

Financial Backing and Future Prospects

On the financial front, VinFast has secured substantial funding to support its rapid expansion. The founder and CEO, Mr. Pham Nhat Vuong, along with Vingroup, has committed up to $2.1 billion in grants while also looking at $1.5 billion in loans for its subsidiaries through the end of 2026. This financial support is intended to bolster the company's capabilities as it navigates its path to profitability.

Furthermore, VinFast's CFO, Ms. Lan Anh Nguyen, expressed optimism regarding the narrowing gross loss, which has contributed positively to the company's overall financial health. The gross margin for Q3 2024 showed significant improvement from the previous quarters, highlighting the effectiveness of ongoing operational enhancements and cost optimizations.

Conclusion

With a strong Q3 performance and solid foundation for future growth, VinFast is poised to end 2024 on a positive note. The company’s dedication to innovating high-quality electric vehicles, combined with strategic expansion and financial prudence, paves the way for its vital role in the transition to green mobility. VinFast is not only reshaping the automotive landscape in Vietnam but is also positioning itself as a formidable player in the global EV market. As the company continues on this trajectory, it holds strong potential for sustained achievement and success in the electric vehicle industry.