According to Vietcap Securities Company, from the meeting of the first quarter of 2024’s business results report of VinFast (Nasdaq: VFS) held on April 17, VinFast’s Board of Directors expected the company to reach the breakeven point on the gross profit margin in 2025 and planned capital investment for fixed asset construction in 2024 at around 1.0-1.5 billion USD, mainly for the construction of a factory in the US, and assembly plants (CKD) in Indonesia and India.
At the meeting, VinFast’s management said that the company understands that there are macroeconomics and geopolitical uncertainties that continue to affect businesses and consumers worldwide. However, VFS considers these to be only temporary challenges; developed markets like the US and Europe are gradually moving past the initial penetration phase and towards wider penetration into the mass customer segment, while emerging markets like ASEAN and India have growth potential due to their currently low penetration rates.
The Board of Directors maintained their plan to deliver 100,000 electric cars in 2024 (mainly in the second half of 2024) thanks to the development of a dealer network and the launch of reasonably priced car models aimed at a wider customer base.
Regarding the plan for capital investment for fixed asset construction of around 1.0-1.5 billion USD for 2024, VinFast will mainly use it to build a factory in the US, and assembly plants (CKD) in Indonesia and India.
The Board of Directors said that the construction of a manufacturing plant in North Carolina, USA (fixed asset investment of 1.4 billion USD; capacity of 150,000 cars/year for Phase 1) is underway and is expected to start operating in late 2025. Meanwhile, the company has started building a CKD plant in India (fixed asset investment of 150-200 million USD; capacity of up to 50,000 cars/year for Phase 1), which is expected to start production in 2026.
In the first quarter of 2024, VFS delivered 9,689 electric vehicles, a decrease of 28% compared to the previous quarter, mainly due to the low season in the first quarter. The majority of the vehicles delivered in the first quarter of 2024 were from the Vietnamese market, with the VF 5 contributing to about half of the total vehicles delivered in the first quarter of 2024, followed by the VF 8 and VF 6 models.
