Nasdaq-listed electric vehicle manufacturer VinFast has released its unaudited financial results for the first quarter of 2025.

Total revenue for Q1 2025 was 16,306.4 billion dong (US$656.5 million), reflecting a 149.9% increase from Q1 2024.

Despite this growth, VinFast reported a net loss of 17,693.8 billion dong (US$712.4 million) and a gross loss of 5,736.5 billion dong (US$231 million). Its net loss was 15% higher than Q1 2024.

The company improved its gross profit margin, reducing the negative margin to 35.2% compared to negative 58.7% in Q1 2024 and negative 79.1% in Q4 2024.

In the same quarter, its EV deliveries reached 36,330 units, a 296% increase compared to the same period last year. E-scooter deliveries surged by 473% year-on-year, totaling 44,904 units.

Meanwhile, VinFast plans to double its global vehicle deliveries in 2025 and is exploring new markets across Europe, Asia, the Middle East, and Africa.

The company currently operates 388 global showrooms for EVs, including dealer locations.

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🔗 Source: VinFast

🧠 Food for thought

1️⃣ Vietnam’s homegrown champion navigates the capital-intensive EV transition with heavy financial backing

VinFast’s rapid growth comes with substantial financial support that differentiates it from many EV startups that struggle to secure funding during their early growth phases.

The company continues to receive massive financial backing from both Vingroup (its parent company) and founder Pham Nhat Vuong, who has committed up to $2 billion in free grants while Vingroup is providing additional loans of up to $1.4 billion through 2026 1.

This level of consistent capital support is particularly crucial in the EV industry, where economies of scale are essential for profitability. VinFast’s improving gross margins (from -58.7% to -35.2% year-over-year) demonstrate the potential benefits of scaling, but also highlight how far the company still needs to go to reach profitability 2.

The continued heavy funding raises important questions about the company’s timeline to self-sustainability, especially given its enterprise value of $13.45 billion alongside a levered free cash flow of -52.11 trillion VND 3.

VinFast’s path mirrors early Tesla, which required years of substantial capital infusion before achieving consistent profitability. This suggests the Vietnamese automaker is following a proven but challenging roadmap in the EV sector.

2️⃣ Strategic pivot to Asia reflects realistic assessment of competitive advantages

VinFast’s operational shifts reveal a company adapting its strategy to focus on markets where it has natural advantages while streamlining presence in more challenging territories.

The company is closing direct-to-consumer stores in Canada and transitioning away from company-owned showrooms in Europe, while simultaneously investing heavily in Indonesia ($200 million manufacturing facility), India (new CKD facility), and other Southeast Asian markets 4.

This pivot makes strategic sense given the growth projections in these markets—India’s EV sector is forecast to grow from $8.03 billion in 2023 to $117.78 billion by 2032, while Vietnam’s own EV market is projected to expand at a CAGR of 18% through 2030 5 4.

The company delivered 36,330 EVs globally in Q1 2025, representing a 296% year-over-year increase, with particularly strong growth in the VF 5 and VF 6 models (153% and 453% respectively) 2.

VinFast’s approach demonstrates how regional EV manufacturers may find more success by leveraging cultural understanding, governmental relationships, and regional supply chains rather than competing directly with established global players in Western markets.

3️⃣ Product diversification strategy addresses unique needs of emerging markets

VinFast is pursuing a distinctive product strategy by developing vehicles specifically designed for emerging market use cases rather than simply following global EV trends.

The company’s launch of the EC Van—a compact electric cargo vehicle with over 600kg payload capacity aimed at small businesses and households—addresses specific needs in developing economies where small commercial vehicles are crucial for local commerce and last-mile delivery 6.

Similarly, the introduction of the EB 6 electric bus platform targets public transportation and shuttle services, essential infrastructure components in rapidly urbanizing Asian economies facing congestion and pollution challenges 7.

This diversified approach contrasts with many Western EV makers that focus primarily on passenger vehicles and premium segments, positioning VinFast to potentially capture underserved market segments with specific regional needs 8.

The strategy aligns with Vietnamese government initiatives that include subsidies and tax refunds to promote EV adoption alongside investments in public charging infrastructure, creating a supportive ecosystem for various EV types 5.

Recent VinFast developments

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