Vietnamese electric vehicle manufacturer VinFast said on Monday its fourth-quarter net loss widened from a year earlier as it increased impairment charges related to its US plant, which it aims to resume construction of this year.
VinFast posted a net loss of 35.2 trillion dong ($1.34 billion) in the final quarter of 2025, 46.5% wider than the previous quarter and 15% wider than the same period of 2024. Adjustments in the book value of its proposed North Carolina plant accounted for $235.6 million of the loss.
“We are committed to the US market… and have been working in the background on that, VinFast Chairperson Thuy Le said during an investor briefing, adding that the company was targeting a soft launch in 2028.
VinFast delayed the plant’s construction in 2024, citing an uncertain EV market.
Since then, governments worldwide have scaled back policies encouraging EV purchases amid softening demand due to economic pressures.
EV deliveries jump
Demand remained strong in Vietnam, however, accounting for almost 80% of the 86,557 EVs VinFast delivered during the fourth quarter. That was an increase of 127% from the third quarter and 63% compared to a year earlier. Two-wheeler deliveries surged over 450% year-on-year to nearly 172,000 units, driven by Hanoi’s ban on petrol-powered motorbikes from the city centre starting in the middle of this year.
VinFast aims to deliver at least 300,000 EVs globally this year while expanding its two-wheeler business to 2.5 times its 2025 volume. Target markets include India, Indonesia, Malaysia, Thailand, and the Philippines.
It also plans to launch range-extended electric vehicles (REEVs) in Vietnam in 2027. Equipped with small petrol engines that recharge batteries, these models are considered a transitional solution in regions with underdeveloped charging infrastructure.
“We view range extender technology as a practical interim spec in the transition from internal combustion engines to fully battery-powered vehicles,” said Anne Pham, VinFast’s senior executive.
Costs weigh on margin
A free-charging programme launched in December 2024 pushed up costs, but helped accelerate sales.
“The programme is highly appreciated by customers, even by dealers… it was one of the best ways for them to convince people to adopt EVs,” VinFast Chair Thuy Le told Reuters. “It is expensive, but at the same time it is a good investment.”
Full-year revenue rose 105% to $3.6 billion. The company, a subsidiary of conglomerate Vingroup, expects to break even by the end of this year.
“Despite backing from Vingroup, VinFast’s high cash burn rate raises questions regarding its ability to fund the required CAPEX,” Ollie Coughlin, an analyst at Third Bridge said in a note.
Reuters
