Vietnamese Electric Vehicle Manufacturer Reports Widening Losses Ahead of U.S. SPAC Listing Plan

Vietnamese electric vehicle maker, VinFast, has recorded a net loss of 14.1 trillion dong (approximately $599 million) in Q1 2023, according to recently filed US regulatory documents. The company, backed by Vietnam's wealthiest individual, Pham Nhat Vuong, plans to merge with special purpose acquisition company, Black Spade Acquisition, later this year in a deal that would give it an equity value of around $23 billion. While VinFast has recently begun shipment of its battery-powered Sport Utility Vehicles (SUVs) to customers in the US, it faces increasing competition from established car makers, with Tesla slashing prices and placing pressure on other rival companies. 
 
VinFast anticipates operating and net losses in the near future as it ramps up vehicle production, builds factories, and pays for marketing and sales efforts. The company has forecasted that, subject to market demand, it could produce electric pickups, mini cars and other models alongside its current SUV offerings, with an expected sales target of 45,000 to 50,000 vehicles this year. 
 
Despite the company's growth plans, it has reported significant losses, with parent company Vingroup JSC and its affiliates deploying roughly $9.3 billion to fund the EV manufacturer between 2017 and March 2023. This comes amidst the latest reported figures of a $14.1 trillion net loss, with the same q1 period last year returning a slightly lesser loss of 9.7 trillion dong.
 
Furthermore, VinFast has removed its timeline for production at its proposed factory in North Carolina, indicating that the start date of 2025 referred to in its March filing may no longer be relevant. VinFast has stated that pre-construction activity has begun on the production facility, which is expected to have an initial capacity of 150,000 vehicles annually with the possibility of increased capacity of up to 250,000 vehicles per annum with no confirmed expected timeframe of capacity expansion.