VinFast posted a net loss of USD 812 million (AUD 1.23 billion) for Q2 amid their aggressive global expansion. This Q2 loss is 15 per cent more than its previous figure of USD 712.4 million (AUD 1.1 billion) in Q1.
LOSSES AND GAINS
Despite its losses in Q2, VinFast delivered more than 35,000 vehicles in the same period. This figure marks a staggering 172 per cent increase in deliveries year-on-year, totalling 72,167 deliveries for the first half of 2025.
“Normally deliveries in the first half of the year accounted for about 30% of the total,” said VinFast’s Chairperson, Thuy Le in a statement to Reuters.
The company also reported profits of USD 663 million (AUD 1 billion) in Q2, up 91.6 per cent from the same period last year.
Counting last year’s figures, VinFast’s performance seems to be following a trend of high sales despite huge losses. For the year 2024, the company announced that its losses amounted to USD 3 billion (AUD 4.6 billion) while delivering a total of 97,399 EVs globally. Last year’s delivery figures were 192 per cent more than those of 2023’s deliveries, surpassing the company’s goal of 80,000 global deliveries.
“In any business at the beginning, you have to take some losses, but the gross margin is improving, and we are still heading toward breakeven,” commented Le.
After the company made the announcement of its Q2 net loss, its stock price dropped by 2.1 per cent. According to Barrons, “Wall Street was looking for a $416 million loss from sales of $654 million.”
GLOBAL STRATEGY
VinFast continued to operate at a loss in Q2 while executing its aggressive global expansion strategy. The Vietnamese automaker is growing its market to several markets in Asia, including India, the Philippines, Indonesia, and Thailand. Beyond Asia, VinFast is also making attempts to break in the North American, South American, and European markets, where it hopes to rival Tesla.
Late last year, the company received an injection of AUD 21.71 billion in investments from its parent company, Vingroup. The CEO and founder of Vingroup, Phan Nhat Vuong, also personally invested around AUD 3 billion of his own funds into VinFast. These additional investments were made to “alleviate short-term financial pressure on the electric vehicle maker.”
For the year 2025, VinFast aims to more than double its performance from 2024, setting a goal of 200,000 deliveries worldwide.
Earlier this year, the automaker opened its first overseas plant in India, which is slated to produce around 50,000 EVs a year. Not only will India become a manufacturing site for VinFast, but a general area of overseas expansion for Vingroup. Aside from the introduction of electric commercial vehicles and two-wheelers, the conglomerate will expand into new energy and hospitality in the country as well.
Similarly, the company also expanded operations in Indonesia, with a factory and instalment of 100,000 EV chargers on the way.
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