Vietnam’s electric vehicle maker VinFast Auto Ltd, a subsidiary of Vingroup JSC, posted a gross loss of $224 million in the second quarter (Q2), primarily due to an impairment charge.
The company’s gross loss for Q2 was ($224) million, equivalent to a gross margin of negative 62.7 percent. This was primarily due to an impairment charge on NRV of $104 million, compared to $5 million in Q1, the company said on Friday.
During the quarter, VinFast delivered 13,172 vehicles, a 44 percent increase compared to the previous quarter and a 43 percent increase year-over-year.
This brings total deliveries for the first half of 2024 to 22,348 vehicles, representing a 101% increase compared to the same period last year, the company said in a statement.
One of the key drivers behind this growth was the increasing adoption of electric vehicles in the Vietnamese market, where VinFast recorded a 108 percent year-over-year increase in B2C deliveries in Q2.
VinFast reported $357 million in revenue in Q2, up by 9 percent year-over-year and by 33 percent quarter-over quarter.
Madam Thuy Le, Chairwoman of VinFast, said, “We remain focused on our mission to contribute to a sustainable future for everyone. Our strategy is unchanged with regards to being a vertically-integrated green mobility solutions company providing high quality and good-value electric vehicles.”
Lan Anh Nguyen, Chief Financial Officer of VinFast, added, “Q2 of 2024 aligned with our forecasts, driven in large part by the increasing demand for VinFast’s EVs in Vietnam. This growth in our home market has been crucial in advancing our mission to promote EV adoption and green mobility. The momentum we’ve built in Vietnam has laid a solid foundation for our strong position in this key market to continue thriving.”
VinFast also said it reaffirms its target to deliver approximately 80,000 units in 2024. Vietnam is expected to play a key role in driving revenue for the remainder of 2024, the company said.
VinFast has been expanding aggressively in Southeast Asia including Indonesia and the Philippines. VinFast entered the Indonesian market less than six months ago and has since established 15 showrooms across major cities, including Jakarta and Surabaya, according to the statement.
VinFast began delivering its first batch of VF e34 electric vehicle during the third quarter of 2024, making Indonesian customers the first globally to receive right-hand drive VinFast EVs. VinFast also broke ground its
completely knocked down (CKD) facility in Indonesia.
Building on the positive response from dealers in the Philippines, VinFast said it is eager to introduce additional models to the market in the coming months, further expanding its footprint and product offerings in the region.
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