VinFast reports $2 billion loss in 2023 despite 90% increase in revenue
Vietnamese electric vehicle (EV) manufacturer VinFast has reported a net loss of over $2 billion in 2023 despite a 90% increase in revenue.
Falling short: VinFast, which aims to compete internationally with global EV giants like Tesla, fell short of its sales target. Although the automotive company’s total revenue for 2023 was $1.19 billion, up 91% from the previous year, it reported a net loss of $2.39 billion, a 14.7% increase from 2022. The company reportedly delivered 34,855 electric vehicles in 2023, missing its target of 50,000.
Expanding its market: However, VinFast plans to raise its delivery target to 100,000 vehicles in 2024 and expand into additional international markets besides the U.S., Canada and Europe.
On Wednesday, the company reportedly revealed plans to construct an EV factory in Tamil Nadu, India, commencing on Feb. 25. The facility is expected to have an annual production capacity of 150,000 vehicles. Additionally, VinFast intends to allocate a minimum of $1.2 billion in Indonesia to establish another factory and has also indicated its interest in making investments in the Philippines.
“We saw favorable results in our business operations in the fourth quarter with strong revenue growth and improved profit margins,” Anh Nguyen, Vinfast chief financial officer said in a statement. “We remain focused on enhancing investment performance and strengthening our balance sheet by reducing production and materials costs.”
About VinFast: Founded in 2017, VinFast, a member of Vingroup, owns an automotive manufacturing complex in Hai Phong, Vietnam. The company commenced car deliveries in California in March last year and had sold approximately 21,200 units by the third quarter, with over half of them going to its affiliate. The management anticipates the company to achieve a break-even point by 2025.
VinFast also recently unveiled an electric pickup truck concept and launched a factory in North Carolina to supply EVs for the American market.
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