VinFast 's total revenue reached nearly VND 28,600 billion (almost USD 1.2 billion) last year, a 91% increase as the manufacturer delivered five times more electric vehicles than in 2022.
VinFast Auto (VFS), the electric vehicle manufacturer under Vingroup , today announced its financial report for the fourth quarter and the entire year of 2023.
Accordingly, VinFast's total revenue in the last three months of 2023 reached over VND 10,400 billion (USD 437 million), an increase of 26% compared to the third quarter and 133% compared to the same period last year. For the whole of last year, the company earned VND 28,596 billion (nearly USD 1.2 billion), an increase of 91% compared to the same period.
After deducting expenses, VinFast reported a gross loss of over 4,100 billion VND in the fourth quarter and over 13,000 billion VND in 2023.
Despite still incurring losses, VinFast's gross profit margin improved, from -82% in 2022 to -46% in 2023. The gross profit margin for the last quarter of last year alone was more than -40%.
According to Vingroup's parent company's consolidated financial report, in 2023, the manufacturing segment contributed over VND 28,000 billion in revenue, more than double the VND 13,000 billion of the previous year.
However, this segment still incurred a pre-tax loss of over 33,000 billion VND last year. When consolidated into the group's business results, the loss was offset by profits from real estate transfer and leasing. The total profit from Vingroup's real estate segment, recorded through Vinhomes and Vincom Retail, reached over 32,600 billion VND.
Vietnamese electric vehicle manufacturers delivered 34,855 electric cars in fiscal year 2023, nearly five times the number delivered the previous year. The number of electric motorcycles delivered in the fourth quarter of 2023 increased by 48% compared to the same period last year, bringing the total number of vehicles delivered for the year to 72,468.
Last year, VinFast focused on a multi-pronged strategy, including transforming and expanding its global retail network, diversifying its product range, and enhancing production capacity. In the last quarter of 2023, the company shifted from a direct distribution model to building a dealer network in the US and globally. In the US alone, the manufacturer has 13 stores in California and 6 dealerships in North Carolina, New York, Texas, Florida, and Kansas. The company expects to reach 130 sales points in North America and 400 sales points globally by the end of 2024.
This year, the Vietnamese electric vehicle manufacturer aims to balance revenue growth with cost optimization. The Vingroup subsidiary expects to deliver 100,000 vehicles by expanding its distribution channels and leveraging its existing dealer network in each market.
VinFast has recently entered the Indonesian market with its electric vehicle ecosystem featuring left-hand drive versions. The company has already secured its first order, with three Indonesian businesses signing a memorandum of understanding yesterday to purchase 600 electric vehicles.
In India, the company is preparing to launch an integrated electric vehicle manufacturing project in Thoothukudi, with a capacity of 150,000 vehicles per year.
With the goal of optimizing costs, the Vietnamese manufacturer stated that it reduced material costs by 40% in the two years following the launch of each model. This was achieved in part through engineering solutions, such as redesigning parts, optimizing the platform, and initiatives in supply chain and procurement.
Minh Son
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