VinFast reports net loss of $2 billion in 2023 – Companies

The communist state’s first domestic automaker is trying to break into the global market, aiming to compete with global EV giants such as Tesla.

VinFast said in a filing with the US Securities and Exchange Commission that its total revenue in 2023 was $1.19 billion, up 91 percent compared to the previous year.

But the company also reported a net loss of $2.39 billion, up 14.7 percent compared to 2022, after missing its EV sales target.

“We saw good results in our business operations in the fourth quarter with strong revenue growth and improved profit margins,” Anh Nguyen, Vinfast’s Chief Financial Officer said in a statement.

“We remain focused on enhancing investment performance and strengthening our balance sheet by reducing production and equipment costs.”

A total of 34,855 Vinfast EVs were delivered in 2023, worth $1.09 billion and up 111 percent from the previous year — but that number was short of VinFast’s goal of 50,000.

Filing said that Vinfast’s net loss was $551.6 million last year, and $174.9 million in the fourth quarter.

However, its income between October and December reached 436 million dollars, an increase of 26 percent compared to the previous quarter.

The company said it will increase its delivery target to 100,000 vehicles in 2024, and focus on penetrating other international markets besides the United States, Canada and Europe.

Vinfast announced on Wednesday that it will start building an EV plant in the southern Indian state of Tamil Nadu on February 25, with the capacity to produce 150,000 vehicles a year.

The company also plans to invest at least $1.2 billion in Indonesia, where it plans to set up an EV factory, and has expressed interest in investing in the Philippines.

Vinfast listed on the Nasdaq in August, making headlines around the world when its stock rose and then fell.

The company’s CEO is Pham Nhat Vuong, Vietnam’s richest man and chairman of Vinfast’s parent company Vingroup.