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VinFast plans to add a new completely knocked down (CKD) factory in the central province of Ha Tinh, focusing on VF 3 and VF 5 in response to increasing demand for affordable electric vehicles (EVs) and to improve production efficiencies.
The factory will be under a long-term lease structure to optimise initial spendings. The factory will have a maximum capacity of 300,000 EVs per year, subject to demand and general market conditions, with a gradual ramp up in capacity and production overtime. The construction of the factory will begin in early December, and the factory is expected to commence operations in 2025.
VinFast released its unaudited financial results for the third quarter on November 27, with total revenue standing at $511.6 million for the period, representing an on-year increase of 49.3 per cent and an increase of 42.2 per cent from the previous quarter.
Gross loss was $122.8 million in the third quarter, representing an on-quarter decrease of 45.6 per cent.
The gross margin for the period was negative 24 per cent. This represents a significant improvement compared to the negative 27 per cent margin in the same quarter of the previous year and the negative 62.7 per cent margin in the second quarter.
Net loss was $550 million in the third quarter, representing an on-year decrease of 14.8 per cent and a decrease of 29.4 per cent from the previous quarter
VinFast delivered 21,912 EVs last quarter, up 66 per cent compared to the second quarter and up 115 per cent compared to last year. Business-to-consumer deliveries experienced a considerable quarterly increase of 163 per cent, highlighting strong market demand for VinFast's EVs.
Thuy Le, chairwoman of VinFast, said, "Our third quarter results were underpinned by a robust September, as we recorded the highest monthly deliveries in Vietnam. This marks a historic milestone for Vietnam’s automotive industry where, for the first time since we were established seven years ago, a domestic manufacturer has outperformed international competitors to become the market leader across the passenger vehicle market."
"We expect to finish 2024 on a strong note and meet our 80,000-vehicle delivery target. Producing high-quality EVs is a complex task, one that requires unwavering dedication and fortitude to navigate ongoing uncertainties. The path to green mobility is challenging, but our commitment to this future is resolute–because the future is, unquestionably, electric," she added.
VinFast operates 173 showrooms globally for EVs and 160 showrooms and service workshops for e-scooters, including branded showrooms and dealer showrooms.
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By Thanh Van
