On February 22, 2024, VinFast Auto Ltd., the leading electric vehicle manufacturer in Vietnam and a subsidiary of Vingroup conglomerate, announced its unaudited financial report for the fourth quarter and full year of 2023, which ended on December 31, 2023.
According to VinFast’s announcement, the company delivered a total of 34,855 electric cars to customers worldwide in 2023, marking a 374% increase compared to 2022. In the fourth quarter of 2023, VinFast delivered 13,513 cars, a 35% increase from the third quarter (10,027 cars).
In the electric motorcycle segment, VinFast delivered 24,309 motorcycles in the fourth quarter and 72,468 motorcycles in the whole of 2023. Compared to the third quarter’s figure of 28,220 motorcycles, VinFast’s electric motorcycle deliveries in the fourth quarter decreased. However, compared to the same period in 2022, the number of electric motorcycles sold by VinFast still increased by 48%.
| Number of deliveries | 2023 | Q4 2023 | Q3 2023 |
| Electric Cars | 34,855 | 13,513 | 10,027 |
| Electric Motorcycles | 72,468 | 24,309 | 28,220 |
According to VinFast, in the fourth quarter of the previous year, the company achieved a revenue of VND 10,418 billion (USD 437 million), a 26% increase compared to the previous quarter and a 133% increase compared to the same period in 2022. Meanwhile, VinFast’s full-year revenue reached VND 28,596 billion (USD 1,198 billion), a 91% increase from 2022.
After deducting expenses, VinFast recorded a gross loss of VND 4,174 billion (USD 174.9 million) in the fourth quarter and a gross loss of VND 13,164 billion (USD 551.6 million) in 2023. VinFast’s gross profit margin has significantly improved compared to 2022, decreasing from negative 82% to negative 46%. Meanwhile, the fourth-quarter gross profit margin improved from negative 82.6% to negative 40.1%.
According to VinFast’s previously set plans, the fourth-quarter capital expenditure (Capex) was USD 213 million, mainly used for the development of VF6 and VF7 models, construction of a factory in North Carolina, showroom and charging station development.
In 2023, VinFast introduced 4 new SUV models in Vietnam in various segments, including the flagship VF9, VF5, VF6, and VF7. This year, VinFast aims to deliver 100,000 vehicles and achieve approximately 400 global sales points. In addition, the company also aims to enhance its competitiveness in potential markets near Vietnam, such as Indonesia and India.
At the Indonesia International Motor Show (IIMS), VinFast announced its entry into the Indonesian market with a reverse right-hand drive electric vehicle ecosystem, including VF5, VF e34, VF6, and VF7 models. The company has also officially signed a Letter of Intent to collaborate with 5 first-agent dealerships in Indonesia and plans to establish a Completely Knocked Down (CKD) production facility in the country. Additionally, VinFast has officially signed a Memorandum of Understanding to supply 600 electric vehicles to 3 Indonesian companies.
In India, just over a month after announcing the signing of a Memorandum of Understanding with the Tamil Nadu state government, VinFast has announced the groundbreaking ceremony for the integrated electric vehicle production project in Thoothukudi city. With a vision to become a leading electric vehicle production center in the region, the factory project has a capacity of up to 150,000 electric vehicles per year when operating officially.
The second key target in 2024 is cost optimization. VinFast is implementing initiatives to reduce material costs by 40% within two years after the launch of each new model; partly through technical efforts such as re-designing parts and optimizing the platform, and the rest through supply and procurement initiatives such as internalization and supplier switching. Additionally, VinFast will continue to optimize production costs and other expenses.
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