VinFast Auto Ltd
NASDAQ:VFS
VinFast Auto Ltd
VinFast Auto Ltd., a Vietnamese automaker, has been making audacious moves in the global automotive landscape, aiming squarely at the electric vehicle (EV) market. The company, founded in 2017 by the Vingroup conglomerate, initially set its sights on internal combustion vehicles, but quickly pivoted to embrace the electric revolution. With significant investments in research and development, VinFast launched its first batch of EVs in 2021, swiftly capturing attention with its bold vision of bringing Vietnamese branding to the forefront of international auto markets. By focusing on sleek design, competitive pricing, and high-tech features, VinFast aspires to stand out in a crowded market, leveraging the backing of its parent company to scale rapidly.
VinFast generates revenue through the sale of its vehicles, focusing primarily on the burgeoning electric SUV and sedan segments. The company maintains a holistic approach to its operations, overseeing the entire manufacturing process from R&D to assembly at its expansive manufacturing complex in Hai Phong, Vietnam. By doing so, VinFast aims to maintain quality control and cost efficiency, allowing it to compete against more established global players. Additionally, the company leverages strategic partnerships with globally recognized entities to enhance its technology and supply chain capabilities. Furthermore, VinFast is exploring direct-to-consumer sales in select markets, particularly targeting the U.S. and Europe, aiming to undercut traditional dealership models and pass on savings to consumers, which aligns with its ambitious plans for rapid international expansion.
VinFast Auto Ltd., a Vietnamese automaker, has been making audacious moves in the global automotive landscape, aiming squarely at the electric vehicle (EV) market. The company, founded in 2017 by the Vingroup conglomerate, initially set its sights on internal combustion vehicles, but quickly pivoted to embrace the electric revolution. With significant investments in research and development, VinFast launched its first batch of EVs in 2021, swiftly capturing attention with its bold vision of bringing Vietnamese branding to the forefront of international auto markets. By focusing on sleek design, competitive pricing, and high-tech features, VinFast aspires to stand out in a crowded market, leveraging the backing of its parent company to scale rapidly.
VinFast generates revenue through the sale of its vehicles, focusing primarily on the burgeoning electric SUV and sedan segments. The company maintains a holistic approach to its operations, overseeing the entire manufacturing process from R&D to assembly at its expansive manufacturing complex in Hai Phong, Vietnam. By doing so, VinFast aims to maintain quality control and cost efficiency, allowing it to compete against more established global players. Additionally, the company leverages strategic partnerships with globally recognized entities to enhance its technology and supply chain capabilities. Furthermore, VinFast is exploring direct-to-consumer sales in select markets, particularly targeting the U.S. and Europe, aiming to undercut traditional dealership models and pass on savings to consumers, which aligns with its ambitious plans for rapid international expansion.
Record Vehicle Sales: VinFast became the first Vietnamese automaker to surpass 100,000 vehicle sales in the first three quarters, with Q3 deliveries reaching 38,195 EVs, up 74% year-over-year and 7% sequentially.
Revenue Growth: Q3 revenue rose to $719 million, a 47% increase year-over-year and 9% quarter-over-quarter, driven by strong EV and e-scooter demand.
Profitability Challenges: Gross margin worsened to negative 56.2% in Q3, mainly due to timing of revenue recognition and higher warranty costs in overseas markets.
Liquidity Position: VinFast ended Q3 with $3.7 billion in liquidity, providing an estimated 18 months of operational runway.
International Expansion: Management noted accelerating international growth, especially in India and Indonesia, with Vietnam expected to remain the core market in the near term.
Strong E-Scooter Growth: E-scooter deliveries reached 120,052 units in Q3, up 535% year-over-year, benefiting from supportive government policies.
No Hybrid Models: Company remains focused on fully electric vehicles, with no current plans to develop hybrid powertrains.
R&D and New Platforms: Significant investments continue in new vehicle platforms, electrical architectures, and autonomy, with 70%-80% of 2026 sales expected from new platforms.
