VinFast Auto Ltd. reported a first-quarter net loss of $712.4 million, a 20% increase from a year earlier, as rising costs tied to its global expansion efforts outpaced strong revenue growth. Despite a 150% jump in revenue to $656.5 million, the Vietnamese electric vehicle maker continues to face financial headwinds driven by international investment and manufacturing expenses.
The company’s cost of sales rose 112.9% year-over-year to $887.5 million, while its operating loss reached $485.6 million, marking a 20.3% increase from the same quarter last year. The financial strain highlights the growing expense of scaling operations in competitive and price-sensitive EV markets across Asia.
VinFast delivered 36,330 electric vehicles globally during the quarter, representing a 296% increase from the same period last year, along with 44,904 electric scooters, a 473% rise. The surge in volume supports the company’s goal of doubling annual global deliveries, which totaled 97,399 in 2024.
While the company continues to expand internationally, it is shifting away from North America and Europe due to high logistics costs.
Instead, VinFast is concentrating on key Asian markets, including India, Indonesia, the Philippines, and Vietnam. The automaker plans to inaugurate its factory in Tamil Nadu, India, on July 30 and expects to open a facility in Indonesia by October. In Vietnam alone, VinFast is targeting deliveries of over 200,000 vehicles this year.
To sustain its expansion, VinFast is relying heavily on financial support from its parent company and founder. As of May 31, Vingroup had extended $1.2 billion in loans, and $825.4 million of a $2 billion grant pledged by CEO Pham Nhat Vuong had been disbursed. Vuong, who invested nearly $1 billion of personal funds into VinFast over the past two years, has committed to injecting an additional $2 billion through 2026.
