VinFast Auto Ltd., a subsidiary of Vingroup and Vietnam’s leading electric vehicle manufacturer, has announced its financial report for Q3 2023, ending on September 30, 2023. According to the report, VinFast delivered 10,027 electric cars in Q3 2023, up 5% compared to Q2 2023, bringing the total number of cars sold in the first 9 months of 2023 to 21,342.
Total revenue and gross profit margin have improved compared to Q2 2023:
The number of VinFast electric cars delivered in Q3 2023 was 10,027, an increase of 5% compared to Q2 2023. Q3 also saw positive sales growth in September in the North American market, especially in Canada.
In addition to electric cars, in Q3 2023, VinFast achieved impressive sales of 28,220 electric motorcycles delivered, an increase of 177% compared to Q2 2023 and 113% compared to Q3 2022.
VinFast’s total revenue for Q3 2023 reached VND 8,254 billion ($342.7 million), an increase of 4% compared to Q2 2023 and 159% compared to Q3 2022. The majority of revenue came from electric car sales, totaling VND 7,698 billion.
Expected to receive up to VND 29 trillion non-refundable funding in the next 6 months
According to the Financing Agreement between Vingroup and Chairman Pham Nhat Vuong for VinFast, disclosed in April 2023, as of September 30, 2023, Vingroup has disbursed VND 23 trillion in loans and in September 2023, Chairman Pham Nhat Vuong has also disbursed VND 7 trillion as a gift to VinFast.
In the next 6 months, VinFast is expected to receive up to VND 12 trillion in non-refundable funding from Vingroup. In addition, two shareholders controlled by Chairman Pham Nhat Vuong will donate all net proceeds from the sale of 46 million shares, according to information registered in the recent F-1 filing with the SEC.
VinFast’s total funding expected to be received in the coming quarters could reach VND 29 trillion or more.
Ms. Le Thi Thu Thuy, Global CEO of VinFast, shared: “This is the first quarter VinFast is listed on the Nasdaq and complies with reporting standards and public disclosure for US companies. We have many plans and big dreams to build a green future for humanity. The successes achieved in the past two quarters are just the beginning. The leadership has set out feasible action plans for each step to enable VinFast to accelerate and reach the level of a global company.”
Business model transformation – expansion into 50 new markets in 2024
In recent times, VinFast continues to expand its product range by officially launching the electric SUV model VF 6 in the Vietnamese market on September 29, 2023. This is the next strategic model in VinFast’s electric vehicle product line, with affordable prices and targeting young families.
Along with the launch of the new model, VinFast plans to transform its business model and expand its distribution network through cooperation with dealers and distributors worldwide. The new model will expand customer access and accelerate its presence in target markets while optimizing investment costs. To support dealers in developing stores quickly in the initial stage, VinFast may transfer some of its own stores to dealers. VinFast also ensures the continued maintenance and enhancement of its market-leading after-sales policies.
In the US, as of September 30, 2023, VinFast has received Letters of Interest/Registrations from 27 dealers with over 100 sales points across states such as Florida, Texas, North Carolina, Virginia, New Jersey, and Arkansas. In Q3, VinFast also added 10,000 charging points from a partner in the North American market, bringing the total charging points for VinFast cars to over 107,000.
In terms of operations scale, the company plans to develop business in at least 50 new markets globally by the end of 2024. In addition, VinFast has announced plans to build an assembly plant in India, the world’s third-largest automotive market, following the previously announced plans to build plants in the US and Indonesia. The investment capital for the plant in India is estimated at about $150-200 million, with a capacity of up to 50,000 cars per year in the first phase.
Building plants in new markets allows VinFast to maximize the incentives offered by the respective governments, reduce import duties, and access raw materials at attractive prices. The investment budget for assembly plants in Indonesia and India will be balanced from the optimal total investment over the next 2 years.
David Mansfield, CFO of VinFast, said: “We are seeing positive results in our business operations with improving sales volume and revenue, while also focusing on implementing cost-cutting initiatives to move toward profitability. VinFast is increasing vehicle deliveries as planned and is ready to expand in strategic markets such as Indonesia and India. The company continues to seek opportunities to optimize investment efficiency, strengthen the balance sheet to support growth and achieve even greater success.”
With a breakthrough business strategy, superior deployment speed and capacity, and expected financial resources from sponsors, VinFast is ready to enter a new era of growth on a global scale./.
VinFast, a subsidiary of Vingroup, aims to be a global smart electric vehicle brand driving the global electric vehicle revolution. VinFast produces electric SUVs, electric motorcycles, and electric buses in Vietnam, exporting to North America, and soon to Europe. Learn more at: www.vinfastauto.com