The Vietnamese owned electric vehicle manufacturer has announced its business results in the fourth quarter 2023 with revenue of $437 million, up 133 percent compared with the same period of the year before. However, despite the revenue increase, the auto manufacturer incurred a loss of VND4.2 trillion.

By the end of 2023, VinFast had revenue of $1.2 billion, or 1.9 times higher, and consolidated loss of $552 million.

In 2023, the manufacturer delivered 34,855 electric cars, up 48 percent over the year before, and sold 72,468 electric motorbikes.

As such, VinFast’s loss has narrowed and the profit margin has increased thanks to cost management optimization.

VinFast’s report contains an ambitious plan on delivering 100,000 electric cars in 2024. It plans to set up 130 sale points in North America and 400 points all over the globe by the end of this year.

VinFast is gathering strength to expand markets. Indonesia and India are two markets that VinFast is targeting. Optimizing production and material costs, and Capex (capital expenditure) are believed to be important solutions to expand markets.

VinFast’s chair Le Thi Thu Thuy said the auto manufacturer has had important milestones recently, including the listing on Nasdaq, the launch of many new products, and the expansion of the distribution network.

However, the manufacturer, owned by dollar billionaire Pham Nhat Vuong, is also facing challenges in mobilizing capital in the US financial market amid a cautious investment capital flow. Investors are being cautious when pouring money into many fields, from technology to electric vehicles. Only cash flow to AI is strong.

According to DealStreetAsia, VinFast is approaching a new way to mobilize capital from ultra-wealthy people through partnership with the FORCE Family Office headquartered in the US. 

VinFast has stated that the proportion of freely circulating shares on Nasdaq from 2 percent currently will be 10-20 percent by the year end. The move will help improve the liquidity of VFS shares and benefit long-term capital mobilization.

Vingroup shares (VIC) saw prices increase from VND42,000 to VND47,600 per share on February 22.

Vinhomes shares (VHM) and Vincom Retail (VRE) have also increased in price, thus helping increase Vuong’s assets by $300 million to $4.8 billion by that time.

According to the Deccan Herald, VinFast has been allocated a land plot of 400 acres in an industrial zone developed by SIPCOT in India for its first factory in the country. Meanwhile, it will invest at least $1.2 billion in Indonesia.

Manh Ha