VinFast Reports USD2 Bil Net Loss Despite 90% Increase in Revenue
According to the AFP, Vietnamese electric vehicle maker VinFast today reported a net loss of more than US$2 billion in 2023 after missing its sales target, despite a 90% increase in revenue.
Its total revenue for 2023 was USD1.19 billion, up 91% compared to the previous year, but it also reported a net loss of USD2.39 billion which is an increase of 14.7% when compared to 2022.
A total of 34,855 Vinfast EVs were delivered in 2023, accounting for US$1.09 billion and up 111% from the previous year – but that figure was short of VinFast’s 50,000 target.
Vinfast listed on the Nasdaq in August, hitting headlines around the world as its valuation skyrocketed and then crashed.
The company’s CEO is Pham Nhat Vuong, Vietnam’s richest man and chairman of Vinfast’s parent company Vingroup.
Though the loss is high, Vingroup is the largest conglomerate in Vietnam and collectively they contributed 1.1% of Vietnam’s GDP.
Vinfast announced yesterday that it will begin building an EV factory in India’s southern state of Tamil Nadu on Feb 25, with capacity to produce 150,000 vehicles a year.
The firm also plans to invest at least US$1.2 billion in Indonesia, where it plans to establish an EV factory, and has expressed intention to invest in the Philippines.
We’ve reported about the death of Arrival as well as Mercedes-Benz pulling the plug on its EV plans and in line with these dour reports, tech giant Apple has also bowed out of the EV game before developing a single product.
The news came as a shock even to its 2,000 strong staff who were dedicated to the project.
What can we make of these numbers? Will EVs still be a going concern in the next 10 years or is it just experiencing its moment in the sun before it crashes and burns like Icarus.
