VinFast's total revenue reached nearly 28.600 billion VND (nearly 1,2 billion USD) last year, an increase of 91% as the manufacturer delivered 5 times more electric cars by 2022.
VinFast Auto (VFS), an electric vehicle manufacturer belonging to Vingroup, today announced its financial statements for the fourth quarter and full year of 4.
Accordingly, VinFast's total revenue in the last three months of 2023 reached more than 10.400 billion VND (437 million USD), an increase of 26% compared to the third quarter and 133% over the same period last year. Overall last year, this business collected 28.596 billion VND (nearly 1,2 billion USD), an increase of 91% over the same period.
After deducting expenses, VinFast's gross loss in the fourth quarter is more than 4.100 billion VND and in 2023 is over 13.000 billion VND.
Although still losing money, VinFast's gross profit margin improved, from negative 82% in 2022 to negative 46% in 2023. Gross profit margin in the last quarter of last year alone was negative more than 40%.
According to parent company Vingroup's consolidated financial report, in 2023, the manufacturing segment contributes more than VND 28.000 billion in revenue, more than double the previous year's level of VND 13.000 billion.
However, this segment still suffered a loss of more than VND 33.000 billion before tax last year. When consolidated into the group's business results, the loss is offset by profits from real estate transfer and rental business. Vingroup's total real estate profit recorded through Vinhomes and Vincom Retail reached more than 32.600 billion VND.
Vietnam's electric vehicle manufacturer delivered 34.855 electric cars in fiscal 2023, nearly 5 times the previous year. The number of electric motorbikes delivered in the fourth quarter of 2023 increased by 48% over the same period last year, bringing the total number of vehicles delivered for the whole year to 72.468 units.
Last year, VinFast focused on a multi-directional strategy, including converting and expanding its global retail network, diversifying its product range, and improving production capacity. In the last quarter of 2023, the company will switch from a direct distribution model to building an agent network in the US and globally. In the US alone, this manufacturer has 13 stores in California, 6 agents in the states of North Carolina, New York, Texas, Florida and Kansas. The company plans 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 manufacturer aims to balance between increasing revenue and optimizing costs. Vingroup member companies expect to be able to deliver 100.000 vehicles through opening distribution channels and taking advantage of dealer networks in each market.
VinFast has just entered the Indonesian market with a right-hand drive electric car ecosystem. The company had its first order when three businesses in this country yesterday signed a memorandum of understanding to buy 600 electric vehicles.
In India, the company is preparing to start construction on an integrated electric vehicle manufacturing project in Thoothukudi city, with a capacity of 150.000 vehicles per year.
With the goal of cost optimization, the manufacturer from Vietnam said it has reduced material costs by 40% in the two years after the launch of each model. This is partly due to technical solutions, such as parts redesign, platform optimization, and sourcing and procurement initiatives.
Minh Son
