Vietnam’s VinFast reported a bigger third-quarter net loss on Friday as the electric vehicle maker spent heavily to expand its footprint and boost sales amid intense competition in Southeast Asia, the company’s largest market.
Shares of the company were down 12%.
VinFast signed two loan facilities during the quarter totaling $250 million, as it looks to ratchet up its ambitious growth strategy and expand internationally even amid tariff pressures and subdued demand in the United States.
Still, taking on additional debt could hammer the loss-making company’s margins at a time when it works aggressively to cut costs by shifting to a dealership-based model and optimizing its supply chain.
“The company has shifted its focus from the U.S. and Europe to other Asian markets but faces similar challenges competing with Tesla and Chinese EVs, with its premium pricing a major hurdle,” said Third Bridge analyst Izabella Yan.
VinFast’s third-quarter loss widened to 24 trillion dong ($910.85 million) from 13.25 trillion dong a year ago.
Quarterly gross margin was negative 56.2%, compared with negative 24% last year, largely attributed to higher warranty provision rates and cost of vehicles sold, VinFast said.
“The company’s strategy in Q3 2025 continued to focus on driving top-line growth,” executives said on a post-earnings conference call.
They added that the company will see a higher contribution to fourth-quarter vehicle sales from international locations, with the ramp-up mostly coming from India, where it launched its factory earlier this year.
E-scooter and e-bike deliveries soared more than sixfold in the quarter after Hanoi announced plans to ban petrol-powered motorbikes in the city center starting in mid-2026.
The company’s total revenue for the quarter stood at 18.1 trillion dong, a rise of nearly 47% from the same period last year.
Reuters
