VinFast, the electric car manufacturer, has announced its business results for the fourth quarter of 2023. During this period, the company recorded revenue of VND 10,418 billion (US$437 million), a 26% increase compared to the previous quarter and a 133% increase compared to the same period in 2022. The significant increase in profit margin was due to cost optimization. However, the company still incurred a gross loss of VND 4,200 billion in this quarter.
For the whole year of 2023, VinFast achieved a total revenue of VND 28,596 billion (approximately US$1.2 billion), a 91% increase compared to the previous year. However, the company had a gross loss of over VND 13,100 billion (approximately US$551.6 million) for the year. In 2023, VinFast delivered a total of 34,855 electric cars, a 48% increase compared to the previous year, and sold an additional 72,468 electric motorcycles.
Ms. Nguyen Thi Lan Anh, the new CFO of VinFast, affirmed: “In the fourth quarter of 2023, VinFast achieved significant revenue growth and improved profit margins. We will continue to focus on improving investment efficiency and strengthening the balance sheet through continued optimization of production costs, bill of materials (BOM), and global capital expenditure (Capex) costs. This will be a crucial boost for VinFast in its market expansion, especially in potential markets such as Indonesia and India, thereby driving strong sales growth.”
As of now, the electric car company has 13 stores in California and 6 dealerships in 5 states including North Carolina, New York, Texas, Florida, and Kansas, with a total of 75 registered dealers in its network. The company plans to have around 130 sales points in North America and 400 sales points worldwide by the end of 2024. Sales through dealerships are expected to contribute significantly to the sales volume in the second half of 2024.
In the fiscal year 2024, VinFast aims to balance revenue growth and cost optimization, based on the platform of optimized production and material costs, while strategically investing in potential markets in the region.
To boost electric car sales, VinFast will expand its distribution channels by leveraging the network and experience of its dealers in each market. Success in key markets such as the United States will reinforce the company’s effective competitiveness in other markets to increase sales volume, especially in untapped Asian markets with great potential.
The second key objective in 2024 is cost optimization. VinFast is implementing initiatives to reduce material costs by 40% within two years after launching each car model; partly through technical efforts such as redesigning components and optimizing platforms, and partly through supply and procurement initiatives such as internalization and supplier conversion. In addition, VinFast will continue to optimize production costs and other expenses.
In 2024, VinFast also aims to deliver 100,000 vehicles thanks to an expanding distribution network.
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