Home / Business and Economy / VinFast Delays Profitability Past 2027 Amid Expansion Costs
VinFast Delays Profitability Past 2027 Amid Expansion Costs
1 Apr
Summary
- VinFast now expects to break even after 2027 due to rapid expansion.
- The company reported a net loss of nearly $4 billion last year.
- VinFast aims for 300,000 car deliveries this year, a 50% increase.
Vietnamese electric vehicle manufacturer VinFast now anticipates achieving breakeven status only after 2027. This revised timeline stems from aggressive global expansion strategies that have incurred substantial costs. The company reported a net loss of nearly $4 billion in the past year.
VinFast has expanded into Indonesia, India, and the Philippines, although it has scaled back initial ambitions in the U.S. and Europe. The company, which transitioned to fully electric vehicles in 2022, previously targeted gross profit breakeven by 2024, then postponed it to the current year.
Looking ahead, VinFast aims to deliver 300,000 cars globally this year, representing a 50% increase. E-scooter deliveries are also projected to rise significantly. The company believes increasing global fuel prices could accelerate EV adoption, and scaling operations will enhance its path to profitability.
VinFast's domestic success is supported by lower-priced models and generous charging programs, but it faces growing competition from Chinese brands. The automaker's financial operations are supported by its founder, Pham Nhat Vuong, and parent company Vingroup, with over $17 billion pledged in funding.
