VinFast earns $1.2B revenue in 2023

By Minh Son February 23, 2024 | 04:04 am PT

VinFast electric vehicles are parked before delivery to their first customers at a store in Los Angeles, California, U.S., March 1, 2023.Photo by Reuters/Lisa Baertlein

Vietnamese electric vehicle manufacturer VinFast reported revenues of VND28.6 trillion (US$1.16 billion) last year, up 91% from 2022.

In the last quarter sales shot up by 133% to over VND10.4 trillion, according to its recently published results.

It delivered 34,855 cars, five times the number in the previous year, and 72,468 motorbikes during 2023.

Due to huge financial and administrative expenses, it made a gross loss of over VND13 trillion.

Nonetheless, the gross profit margin improved sharply to -46% from -82% in 2022.

Its parent company, Vingroup, managed to make a profit despite VinFast’s huge loss thanks to a VND32.6 trillion profit from its real estate units, property developer Vinhomes and mall operator Vincom Retail.

Adding in profits from all other subsidiaries, the conglomerate made VND13 billion in pre-tax profit in 2023.

Last year, VinFast deployed a multi-directional strategy, which included transitioning and expanding its global retail network, diversifying its product range, and enhancing manufacturing capabilities.

In the last quarter, the company shifted from a direct distribution model to a dealership model for its international operation.

The carmaker currently has 13 stores in California and six dealerships in North Carolina, New York, Texas, Florida, and Kansas, and plans to have 130 retail points in the U.S. and 400 worldwide by the end of 2024.

This year, its focus is on striking a balance between revenue growth and cost optimization.

The firm aims to deliver 100,000 vehicles by capitalizing on various distribution channels and leveraging its network of dealerships in foreign markets.

Recently, VinFast made its debut in the Indonesian market with its right-hand drive EV models, securing orders for 600 units from three local businesses.

Meanwhile, in India, the company is set to break ground on a factory with a capacity of 150,000 vehicles per year in the port city of Thoothukudi.

In terms of cost reduction, the firm said it has lowered material costs by 40% for each vehicle model within two years from launch through technical solutions such as redesigning components and optimizing EV platforms and supply chains.