Alongside its long-term global expansion plan, in 2024, VinFast strategically focuses on the Vietnamese market to maximize its existing competitive advantages and achieve growth targets.
Ms. Le Thi Thu Thuy, Chairwoman of VinFast, shared: “We remain steadfast in our mission to create a sustainable future for all, strongly aiming to become a comprehensive green mobility solutions company, delivering high-quality electric vehicles with great value. With the delivery of VF 3 starting in Q3, we have completed the development of a total of seven electric SUV models.”
Ms. Nguyen Thi Lan Anh, VinFast’s CFO, affirmed: “Our Q2 business performance was in line with our plans. The strong growth, driven by the domestic market, played a crucial role in our goal to promote electrification in Vietnam and solidify VinFast’s position in the market.”
VinFast’s vehicle deliveries grew by 44% compared to Q1, with a 33% revenue increase.
VinFast delivered a total of 13,172 vehicles in Q2, a 44% increase from the previous quarter and a 43% rise year-over-year. With 22,348 vehicles delivered in the first half, VinFast recorded a significant 101% growth rate compared to the same period last year.
VinFast’s growth momentum in Q2 was largely driven by the shift towards electric vehicles in the Vietnamese market, with an impressive 108% year-over-year growth in vehicle deliveries to individual consumers (B2C).
VinFast recorded $357 million in revenue for Q2, a 9% increase year-over-year and a 33% rise from the previous quarter.
VinFast reported a gross loss of $224 million in Q2 with a negative gross profit margin of 62.7%, mainly due to an asset impairment charge of $104 million, compared to $5 million in Q1.
Expanding Global Footprint and Boosting Sales
The strategic expansion of VinFast’s distribution network is yielding impressive results, evident from the fact that 23% of the vehicles delivered in Q2 came through the agent channel.
As of the end of August, VinFast boasts a vast distribution network with 155 stores globally, 70% of which are agent stores.
Strengthening Presence in Key Markets
In Vietnam, VinFast recorded the highest year-over-year growth rate in the first half. With its leading position in the segment, VF 5 has become the main driver behind the company’s strong sales performance. Moreover, VinFast started delivering the highly anticipated mini e-SUV VF 3 in Q3.
In Q2, VinFast continued to solidify its position in the US market (North America), focusing on introducing its products and business strategy to key partners.
To develop brand awareness, VinFast intensified customer engagement through its agent network and established the Agent Advisory Board. By the end of Q2, VinFast had set up showrooms and agent stores in 8 states across the US.
In Canada, VinFast achieved a 15% growth rate compared to the previous quarter. This growth momentum extended into Q3, with vehicle deliveries in July and August reaching their highest levels in the past 12 months.
In Southeast Asia, after officially entering the Indonesian market less than half a year ago, VinFast rapidly expanded its distribution network with 15 showrooms in major cities such as Jakarta and Surabaya.
In parallel with the expansion of its sales network, VinFast broke ground on a CKD factory in Indonesia and delivered the first batch of VF e34 vehicles with right-hand drive.
With nearly 100% of customers in Indonesia opting to purchase vehicles with the battery leasing package, the program has proven its superior effectiveness. This success opens opportunities for VinFast to replicate this model in other markets like the Philippines, reinforcing its commitment to making electric vehicles more accessible to everyone.
In the Philippines, with positive reception from dealers, VinFast will also introduce additional models in the coming months, strongly cementing its regional market position and driving the green transition with an ever-expanding product range.
Outlook for the Remainder of 2024
VinFast maintains its target of delivering approximately 80,000 vehicles for the full year 2024.
With the growing popularity of the VF 5 model, the Vietnamese market will remain VinFast’s primary revenue driver in 2024. With its comprehensive electric vehicle lineup, extensive charging infrastructure, flexible battery leasing options, and robust after-sales services, VinFast is well-positioned to maintain its leadership in the Vietnamese market.
Meanwhile, international markets remain an essential part of VinFast’s growth strategy. The company will continue investing in brand building and expanding its distribution network to maximize the potential of overseas markets.
VinFast remains committed to driving the global electric vehicle revolution, constantly innovating and creating high-quality products, and strengthening its presence in various markets.
Han Dong
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