VinFast Auto Ltd. has announced a significant improvement in its financial performance for the third quarter, showcasing a narrower net loss and a significant surge in revenue. The Vietnamese electric vehicle manufacturer reported a net loss of 13.25 trillion dong, marking a notable 14.8% decrease from the previous year. Revenue also saw an impressive growth of 49.3% during the same period, reaching 12.33 trillion dong.
This positive financial outcome can be largely attributed to VinFast's robust delivery figures. The company confirmed that it delivered a total of 21,912 cars in the third quarter, reflecting a substantial 115% increase compared to the same period last year. The surge in sales was primarily fueled by strong deliveries in the domestic market, which is expected to continue driving revenue for the rest of 2024.
In a bid to further enhance its production capabilities and meet the growing demand for its electric vehicles, VinFast is gearing up to commence the construction of a new manufacturing plant in the central province of Ha Tinh. This facility will focus on producing the VF 3 and VF 5 affordable EV models and is slated to have a maximum production capacity of 300,000 electric vehicles annually. The plant is scheduled to start operations in the upcoming year.
Chairwoman of VinFast, Le Thi Thu Thuy, expressed optimism about finishing the year on a strong note and meeting the target of delivering 80,000 vehicles by the end of 2024. The company's current momentum, as witnessed in the third quarter, is expected to carry through to the final quarter of the year.
Moreover, VinFast's founder and CEO, Pham Nhat Vuong, has demonstrated unwavering support for the company by pledging to infuse additional capital from his personal wealth. With commitments totaling around $3 billion this year, Vuong's dedication underscores his confidence in VinFast's growth trajectory. Additionally, parent company Vingroup JSC has extended its support by providing a loan of up to $1.38 billion to VinFast.
As VinFast continues to expand its global footprint with plans for new factories in India and Indonesia, the company remains steadfast in its goal to achieve financial sustainability. Despite facing challenges in a competitive market, VinFast is determined to break even and achieve cash flow equilibrium by the end of 2026. These strategic initiatives reflect the company's commitment to establishing itself as a prominent player in the rapidly evolving electric vehicle industry.