Vietnam's VinFast Burns More Cash To Spur EV Growth

Vietnamese automaker VinFast Auto VFS shares are trading higher on Monday after the company reported its first-quarter results.

The company reported a quarterly loss per share of 30 cents, which missed the analyst consensus estimate of 28 cents loss.

The quarterly sales of $656.54 million (up 149.9%) beat the street view of $520.01 million.

Also Read: Tesla Vietnamese Rival VinFast Sees EV Deliveries Surge 296% In Q1

Vehicle sales were $612.6 million, up by 164.4% Y/Y.

As of April 30, 2025, the company had 388 showrooms globally for EVs and 357 showrooms and service workshops for e-scooters, including VinFast's and dealer showrooms.

The company delivered 36,330 electric vehicles, representing a 296% Y/Y increase. E-scooter deliveries were 44,904 in the quarter, representing an increase of 473% Y/Y.

The gross margin loss in the quarter was 35.2%, compared to the 58.7% margin loss Y/Y, which was primarily driven by the low base resulting from the recognition of a one-time expense related to VinFast's free charging program.

Loss from operations was $485.6 million in the quarter of 2025, representing an increase of 20.3% Y/Y.

The company burned $607.38 million in operating cash flow, up 21.39% Y/Y. The company held $180.98 million in cash and equivalents as of March 31, 2025.

In its overseas operations, VinFast is optimizing its retail strategy in Europe and North America by closing some direct-to-customer showrooms and transitioning towards a dealership model, having recently signed new partners in France and Germany. The company is also expanding its service network through partnerships in Germany, France, and the Netherlands.

In Asia, VinFast is strengthening its presence by launching the VF 6 in Indonesia with deliveries starting in the second quarter of 2025, and is set to significantly grow its service network in the Philippines by adding over 70 authorized workshops. Furthermore, its assembly plant in Tamil Nadu, India, is scheduled to begin operations in July 2025.

To support this growth, VinFast continues to receive substantial funding from its parent company, Vingroup, and its Founder, Pham Nhat Vuong. As of May 31, 2025, Vingroup has disbursed over $1.2 billion in loans, and Pham has provided $825.4 million in grants.

The company maintained its target of at least double its global deliveries in 2025 and will continue to monitor the evolving macroeconomic situation.

Price Action: VFS shares are trading higher by 12.0% to $3.83 premarket at last check Monday.

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