VinFast revenue up, wants to nearly triple sales in 2024

HANOI — Vietnamese electric vehicle (EV) maker VinFast on Thursday reported a smaller-than-expected 133% jump in fourth-quarter revenue but said it aimed to nearly triple vehicle sales this year as it expands into new markets.

Shares in VinFast, backed by Vietnam’s largest conglomerate Vingroup, were up 2.3% in premarket trading.

Its bullish target comes as other automakers have slashed their EV sales target and curtailed investment plans due to weakening demand in major markets such as the United States.

VinFast, which began U.S. sales in March last year with its sport utility vehicle VF8, relies heavily on the domestic demand, with around 60% of the deliveries going to its affiliate Green SM (GSM), a taxi operator and leasing provider backed by VinFast CEO, Pham Nhat Vuong.

It plans to deliver 100,000 units this year, up from nearly 35,000 deliveries it made in 2023, which was below its target of up to 50,000 units due to slow EV adoption in some regions and intensified price competition.

Its revenue in the final quarter of 2023 reached $437 million, missing analysts’ average estimate of $570.9 million, according to LSEG data. Full-year revenue rose 91% to $1.2 billion.

Founded in 2017 and making EVs since 2021, VinFast has announced numerous EV growth plans overseas. It is constructing a factory in North Carolina, which is expected to launch in 2025, and is planning its first manufacturing facilities in India.

VinFast saw its market capitalization surge to $85 billion — higher than that of legacy U.S. automaker Ford — after its Nasdaq debut in August, but it has since slumped to $12 billion, with its U.S. market entry coinciding with intensifying price competition led by EV leader Tesla.