VinFast's Impressive Q1 2025: Deliveries and Growth Surge
VinFast Shares Exciting Q1 2025 Performance
VinFast Auto Ltd. (NASDAQ: VFS) has achieved impressive financial results for the first quarter of 2025. As a dedicated electric vehicle (EV) manufacturer, VinFast has made it its mission to make electric vehicles accessible to everyone. Recently, the company released its unaudited financial outcomes for the quarter ended March 31, 2025.
Record Deliveries Fuel Growth
In the opening quarter of 2025, VinFast recorded a remarkable 36,330 EV deliveries, showcasing a significant increase of 296% compared to the first quarter of the previous year. This surge in delivery numbers has been particularly noteworthy as the automotive market generally experiences slower sales during the first quarter. In fact, VinFast delivered more vehicles in Q1 2025 than what it achieved in the first half of 2024 combined.
Furthermore, the company saw an astonishing rise in e-scooter deliveries, totaling 44,904 units in Q1 2025—an impressive jump of 473% from the same period in 2024. This momentum highlights VinFast's commitment to expanding its electric mobility solutions.
Financial Highlights Reflecting Operational Improvements
VinFast's total revenues for the first quarter reached VND16,306.4 billion (approximately US$656.5 million), marking a 149.9% increase from the previous year's first quarter. Despite incurring both gross and net losses—VND5,736.5 billion (US$231.0 million) and VND17,693.8 billion (US$712.4 million) respectively—the company showed substantial improvement in its gross profit margin, which improved to negative 35.2%. This change is a significant enhancement when compared to negative margins of 58.7% in Q1 2024 and 79.1% in Q4 2024.
Such advancements underscore an increase in operational efficiency driven by both revenue growth and effective cost management strategies.
Support from Vingroup to Fuel Expansion
To sustain its growth trajectory, Vingroup plans to provide VinFast with additional borrowings of up to VND35,000.0 billion (US$1.4 billion) from November 12, 2024, through 2026. By May 31, 2025, Vingroup had already disbursed approximately VND30,571.3 billion (US$1.2 billion) in loans to VinFast to ensure its continuous development.
Moreover, the founder and CEO of VinFast, Mr. Pham Nhat Vuong, has committed to providing up to VND50,000.0 billion (US$2 billion) in free grants to the company and its subsidiaries as part of a grant agreement dated November 12, 2024, with a total of VND20,500.0 billion (US$825.4 million) already disbursed by the end of May 2025.
Driving Vietnam's Green Transformation
VinFast is at the forefront of the green revolution in cargo transportation with the launch of its EC Van, a compact electric cargo vehicle designed for efficiency and practicality. With a payload capacity of over 600 kg and a compact design, the EC Van provides an ideal solution for short-distance deliveries for businesses and supports household livelihoods.
The EC Van, equipped with a two-seat cabin and a cargo compartment that can hold up to 2,600 liters, boasts a 17kWh usable battery allowing a range of 150 km per charge. The deliveries are set to commence in November 2025, with a starting MSRP of VND285 million (approximately US$11,500).
Addititionally, VinFast is expanding its electric bus offerings, with the EB 6 city bus expected to enter the market in September 2025, followed by a shuttle and school bus model later in the year.
Overseas Markets and Strategic Expansion
VinFast is advancing its presence in international markets with promising initiatives:
Boosting Operations in Indonesia
In Indonesia, the company is expanding its product lineup and establishing a robust sales and service network. Following the earlier models, the VF 6 has recently been introduced, with initial deliveries anticipated for Q2 2025.
Collaborations in the Philippines
In the Philippines, collaboration agreements with local partners are set to enhance service availability, leading to the establishment of over 70 authorized service workshops by 2025.
Entry into the Indian Market
VinFast made its brand debut in India at the Bharat Mobility Global Expo 2025, introducing electric SUV models VF 6 and VF 7. Its CKD facility in Tamil Nadu is slated to commence operations in July 2025.
Optimizing Operations and Future Outlook
As it progresses, VinFast is optimizing its operational strategies, particularly in North America and Europe. A change in Canada will involve closing five direct-to-consumer stores located in shopping malls to improve resource allocation. In Europe, the shift to dealers' showrooms is being executed, with new partnerships enhancing service and support for customers.
Overall, as of April 30, 2025, the company operated a total of 388 showrooms globally, demonstrating its extensive footprint in the emerging EV market.
Madam Thuy Le, Chairwoman of VinFast, expressed optimism about the company’s future, stating, “Despite Q1 typically being our slowest quarter, our deliveries for the first quarter of 2025 exceeded total deliveries for the first half of the previous year—indicating an encouraging start to 2025 amidst ongoing global uncertainties.”
Looking ahead, VinFast is focused on at least doubling global vehicle deliveries in 2025 while adapting strategies to the changing macroeconomic landscape and exploring potential markets in Europe, Asia, the Middle East, and Africa.
Frequently Asked Questions
What were VinFast's total EV deliveries in Q1 2025?
VinFast achieved total EV deliveries of 36,330 units in the first quarter of 2025.
How did VinFast's revenue change in Q1 2025?
Total revenues in Q1 2025 were approximately VND16,306.4 billion (US$656.5 million), reflecting a 149.9% increase from the previous year.
What new products did VinFast introduce?
VinFast launched the EC Van and announced additional electric bus models, including the EB 6.
What is VinFast's strategy for overseas expansion?
The company is focusing on expanding its presence in markets like Indonesia, the Philippines, and India with a strong sales and service network.
What is VinFast's outlook for 2025?
VinFast aims to double its global vehicle deliveries and monitor the macroeconomic landscape for strategic adjustments.
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