VinFast to earn nearly 1.2 billion USD in 2023

VinFast 's total revenue reached nearly 28.6 trillion dong ($1.2 billion) last year, up 91% as the manufacturer delivered five times more electric cars in 2022.

VinFast Auto (VFS), an electric vehicle manufacturer under Vingroup , today announced its financial report for the fourth quarter and the whole year of 2023.

Accordingly, VinFast's total revenue in the last three months of 2023 reached more than VND10,400 billion (USD437 million), up 26% compared to the third quarter and 133% compared to the same period last year. In total, last year, this enterprise earned VND28,596 billion (nearly USD1.2 billion), up 91% over the same period.

After deducting expenses, VinFast's gross loss in the fourth quarter was more than 4,100 billion VND and in 2023 it was over 13,000 billion VND.

Despite still losing money, VinFast's gross profit margin improved, from minus 82% in 2022 to minus 46% in 2023. Gross profit margin in the last quarter of last year alone was minus more than 40%.

According to the consolidated financial report of parent company Vingroup, in 2023, the manufacturing sector contributed more than VND 28,000 billion in revenue, more than double the VND 13,000 billion of the previous year.

However, this segment still suffered a loss of more than VND33,000 billion before tax last year. When consolidated into the group's business results, the loss was offset by profits from real estate transfer and leasing. Vingroup's total real estate profit recorded through Vinhomes and Vincom Retail reached more than VND32,600 billion.

The Vietnamese electric vehicle maker delivered 34,855 electric cars in fiscal 2023, nearly five times more than the previous year. The number of electric motorbikes 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 improving its production capacity. In the last quarter of 2023, the company will shift 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, 6 dealers in North Carolina, New York, Texas, Florida, and Kansas. The company expects to reach 130 points of sale in North America and 400 points of sale globally by the end of 2024.

This year, the Vietnamese electric vehicle maker aims to balance revenue growth and cost optimization. The Vingroup subsidiary expects to deliver 100,000 vehicles by opening distribution channels and leveraging its dealer network in each market.

VinFast has just entered the Indonesian market with its right-hand drive electric car ecosystem. The company has received its first order when three businesses in this country yesterday signed a memorandum of understanding to buy 600 electric cars.

In India, the company is preparing to start an integrated electric vehicle manufacturing project in Thoothukudi city, with a capacity of 150,000 vehicles per year.

In its quest to optimize costs, the Vietnamese manufacturer says it has reduced material costs by 40 percent in the two years following the launch of each model. This is partly due to engineering solutions such as parts redesign, platform optimization, and sourcing and procurement initiatives.

Minh Son

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