Vietnamese Electric Vehicle Manufacturer Nearly Doubles Revenue in 2023

Vietnamese Electric Vehicle Manufacturer Nearly Doubles Revenue in 2023

VinFast, a renowned Vietnamese electric vehicle (EV) manufacturer, made a significant announcement on Thursday revealing the company’s impressive financial performance for the year 2023. They reported almost doubling their revenue in 2023 and laid out ambitious plans for the coming year. The company aims to triple its sales in 2024 and has plans to penetrate new markets, particularly in India and Indonesia.

In a detailed financial breakdown, VinFast revealed that they had experienced a substantial 91 percent surge in their revenue in the previous year. This increase was quantified as 28.6 trillion Vietnamese dong, which equates to $1.2 billion, demonstrating the company’s strong performance and growth.

However, it wasn’t all positive news. The company ended the year with a gross loss of 13.2 trillion dong. This figure is 7.3 percent higher than their losses in 2022, indicating an area that the company needs to address moving forward.

March 2023 marked a significant milestone for VinFast as they launched the VF8 SUV in the U.S market. Despite this international venture, they still heavily depend on domestic demand. Around 60 percent of their vehicle deliveries were made to Green SM, a taxi operator and leasing provider that is closely associated with VinFast’s CEO, Pham Nhat Vuong.

When comparing their performance in 2023 to the previous year, VinFast delivered almost 34,885 vehicles to customers. This figure represents nearly five times the number of vehicles they delivered in 2022. However, despite this impressive increase, the company didn’t meet their targets due to intensified price competition and weak demand in certain parts of the world.

Looking ahead to 2024, VinFast has set a lofty goal of delivering 100,000 vehicles. To support this ambition, they are currently constructing a factory in the USA, which is anticipated to commence operations in 2025. Additionally, the company has plans to expand its reach into the Indian and Indonesian markets.

The aggressive expansion plans of VinFast stand in contrast to the strategies of other electric car manufacturers. Many are anticipating weaker sales and are scaling back their investments due to a slowdown in demand in key markets such as the US.

VinFast, established in 2017, has been producing electric vehicles since 2021. It made headlines in August when it listed its shares on the US stock exchange, briefly achieving a market capitalization of $85 billion, surpassing Ford. However, its market capitalization has since dropped to $12 billion, as reported by Reuters.