VinFast: Revolutionizing the Automotive Industry with Ambitious Delivery Targets

Vietcap Securities has released an updated report on VinFast’s Q1 2025 earnings and 2025 outlook. During Q1 2025, VinFast delivered 36,300 electric vehicles globally, a decrease of 32% QoQ but a significant increase of 296% YoY. The company maintained a strong focus on cost optimization, resulting in a slight improvement in adjusted gross profit margin compared to the previous quarter.

For 2025, VinFast aims to deliver at least 200,000 electric vehicles globally, more than doubling its 2024 deliveries. The company will continue to monitor macroeconomic conditions and expects its flagship models, including the affordable VF 3 and VF 5, to contribute significantly to its delivery goals. The introduction of the new Green models is also anticipated during the year.

Vietcap forecasts a 39%/24% YoY increase in VinFast’s vehicle deliveries for 2025/26, respectively, with a significant contribution from the Vietnamese market. The firm believes that funding from Mr. Pham Nhat Vuong, Chairman of Vingroup, will be a primary source of finance for VinFast during this period.

As per the capital support agreement announced in November 2024, Mr. Pham Nhat Vuong has provided VND 20,500 billion in funding to VinFast as of May 31, and Vingroup has disbursed VND 30,600 billion in loans to the company. The November 2024 plan included commitments of up to VND 50,000 billion in non-refundable grants from the Vingroup Chairman and VND 35,000 billion in loans from Vingroup to VinFast until the end of 2026.

VinFast’s management maintains its target of having three new assembly plants in Vietnam (Ha Tinh province), India, and Indonesia operational by 2025, with the Indian plant expected to commence operations in July 2025. In Q1 2025, total capital expenditures on fixed assets reached VND 3,600 billion, a decrease of 40% QoQ and 24% YoY. Meanwhile, R&D expenses amounted to VND 2,000 billion, a reduction of 25% QoQ and 22% YoY.

VinFast anticipates higher capital expenditures on fixed assets and R&D in the upcoming quarters, with a total investment target of VND 40,000 billion for 2025, representing a 62% YoY increase. Over 50% of this will be allocated to R&D, including both R&D expenses and capitalized R&D investments for new model development and product upgrades. The remaining portion will be invested in fixed assets for CKD plant development as the company enters the final stages of constructing new CKD plants in Asia.

For 2025, VinFast’s management expects total cash outflow (including operating cash flow and capital expenditures on fixed assets) to reach approximately VND 50,000 – 62,000 billion, up from VND 47,000 billion in 2024. They attributed the increase in operating cash flow during Q1 2025 to higher inventory levels as the company prepares for intensified production and deliveries in the upcoming quarters.