VinFast Reports $712 Million Q1 Loss Despite 150% Revenue Surge

Vietnamese electric vehicle maker VinFast reported a 150% surge in first-quarter revenue to $656.5 million, driven by a nearly fourfold increase in EV deliveries to 36,330 units, surpassing analyst expectations. Despite this strong revenue growth and an improved gross margin, the company posted a net loss of $712.4 million, widening 20% year-over-year due to increased costs tied to its global expansion and operations. VinFast's deliveries in Q1 2025 exceeded its total deliveries for the first half of 2024, reflecting progress despite ongoing global uncertainties and a challenging market environment, including U.S. tariffs on imports. The company is focusing on expanding its supplier network with incentives and aims to raise its localization rate to 80% by 2026 to enhance competitiveness. VinFast continues to receive financial backing from its parent company Vingroup and founder Pham Nhat Vuong, who have provided around $2 billion to support its growth and operations. The firm is also shifting its sales strategy by adopting a dealership model and expanding assembly operations in India to bolster its presence in Asia.