FILE - A car frame is being welded by robots at a Vinfast factory in Hai Phong, Vietnam on Sept. 29, 2023. (AP Photo/Hau Dinh, File)
HANOI: Vietnam’s VinFast has reported a bigger third-quarter of financial year 2025 (3Q25) net loss, as the electric vehicle (EV) maker spent heavily to expand its footprint and boost sales amid intense competition in South-East Asia, the company’s largest market.
Shares of the company were down 12%.
VinFast signed two loan facilities during the quarter totalling US$250mil, as it looks to ratchet up its ambitious growth strategy and expand internationally even amid tariff pressures and subdued demand in the United States.
Still, taking on additional debt could hammer the loss-making company’s margins at a time when it works aggressively to cut costs by shifting to a dealership-based model and optimising its supply chain.
“The company has shifted its focus from the United States and Europe to other Asian markets but faces similar challenges competing with Tesla and Chinese EVs, with its premium pricing a major hurdle,” said Third Bridge analyst Izabella Yan.
VinFast’s third-quarter loss widened to 24 trillion dong (US$911mil) from 13.25 trillion dong a year ago. Quarterly gross margin was negative 56.2%, compared with negative 24% last year, largely attributed to higher warranty provision rates and cost of vehicles sold, VinFast said.
“The company’s strategy in 3Q25 continued to focus on driving top line growth,” executives said on a post-earnings conference call. They added that the company will see a higher contribution to fourth-quarter vehicle sales from international locations, with the ramp-up mostly coming from India, where it launched its factory earlier this year.
E-scooter and e-bike deliveries soared more than six-fold in the quarter after Hanoi announced plans to ban petrol-powered motorbikes in the city. — Reuters
