HANOI, Feb 22 — 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 per cent increase in revenue.
The communist state's first homegrown car manufacturer is trying to crack the international market, aiming to compete with global EV giants such as Tesla.
VinFast said in a filing submitted to the US Securities and Exchange Commission that its total revenue in 2023 was US$1.19 billion, up 91 per cent compared to the previous year.
But the firm also reported a net loss of US$2.39 billion, up 14.7 per cent compared to 2022, after missing its EVs sales target.
"We saw favorable results in our business operations in the fourth quarter with strong revenue growth and improved profit margins," Anh Nguyen, Vinfast Chief Financial Officer said in a statement.
"We remain focused on enhancing investment performance and strengthening our balance sheet by reducing production and materials costs."
A total of 34,855 Vinfast EVs were delivered in 2023, accounting for US$1.09 billion and up 111 per cent from the previous year — but that figure was short of VinFast's 50,000 target.
The filling said that Vinfast's gross loss was US$551.6 million last year, with US$174.9 million in the fourth quarter.
However its revenue between October and December reached US$436 million, a 26 per cent rise compared to the previous quarter.
The firm said it would raise its delivery target to 100,000 vehicles in 2024, and focus on penetrating other international markets beside the United States, Canada and Europe.
Vinfast announced Wednesday that it will begin building an EV factory in India's southern state of Tamil Nadu on 25 February, 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.
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. — AFP