VinFast Auto Ltd. (“VinFast” or “the company”), a Vietnamese electric vehicle (EV) manufacturer owned by Vingroup JSC, recently published its unaudited financial results for the first quarter ended March 31, 2025. These reports reveal a complex picture of significant year-over-year growth in vehicle deliveries alongside ongoing operational and financial challenges. They also indicate new strategic directions aimed at optimizing cost structures and increasing market share. The company, which aims to make EVs accessible to everyone, is seeking to expand its global footprint, with a focus on key markets in Asia, North America, and Europe.

Trends in Deliveries and Sales

In Q1 2025, VinFast delivered 36,330 electric vehicles globally. This represents a sharp 296% increase compared to the same quarter in 2024. Notably, deliveries of the VF 5 and VF 6 models saw extraordinary year-over-year growth of 153% and 453%, respectively, together accounting for 67% of total vehicle deliveries during the quarter. In addition to EVs, the company also delivered 44,904 electric scooters and bikes in the same period, a 473% increase compared to the previous year. As of April 30, 2025, the company operated 388 global EV showrooms and 357 showrooms and service centers for electric scooters.

Despite the strong year-over-year growth, the report showed a 32% quarter-over-quarter decline in EV deliveries compared to Q4 2024. This drop was mainly attributed to seasonal factors and the Lunar New Year holidays in Vietnam, which typically make Q1 the weakest delivery period. Total revenue for Q1 2025 was VND 16,306.4 billion (approximately USD 656.5 million), representing a 149.9% increase from Q1 2024 but a slight 1.2% decline from Q4 2024. Most of this revenue came from EV sales, which totaled VND 15,215.5 billion (approximately USD 612.6 million), a 164.4% year-over-year increase and a 1.5% decrease compared to the previous quarter. Notably, 21% of EV deliveries and 3% of electric scooter deliveries in Q1 2025 were to related parties.

Gross Margin Improvement and Operating Loss

Despite the lower volume in Q1, VinFast reported a significant improvement in gross margin, rising from negative 79.1% in Q4 2024 to negative 35.2% in Q1 2025. This improvement was mainly due to the absence of a one-time VND 5,900 billion (approximately USD 237.5 million) expense in Q4 2024 related to a free charging program. The improvement compared to Q1 2024 (from negative 58.7% to negative 35.2%) was also attributed to higher sales and cost optimization.

The gross loss for Q1 2025 was VND 5,736.5 billion (approximately USD 231.0 million), a 49.8% year-over-year increase but a 56.1% decline from the previous quarter. The company’s operating loss was VND 12,060.2 billion (approximately USD 485.6 million), up 20.3% from Q1 2024 but down 49.4% from Q4 2024. The net loss totaled VND 17,693.8 billion (approximately USD 712.4 million), a 20.0% year-over-year increase and a 42.2% quarter-over-quarter reduction. Operating expenses were influenced by a decrease in R&D costs following the completion of current model development, but also by an increase in SG&A expenses due to impairment charges related to showroom closures and the shift to an agency model.

Operational Strategy and Financing

VinFast is continuing its strategic initiative to streamline its global footprint. The company is closing three mall showrooms and two direct-to-consumer (DTC) showrooms in Canada, as well as all of its showrooms in Germany and the Netherlands, as part of its transition to an agency model. Under this strategy, agency agreements have been signed with partners in France and Germany. The company is also expanding its service network, including through cooperation agreements in the Philippines, which are expected to add over 70 authorized service centers by the end of 2025. In addition, VinFast’s CKD assembly plant in Tamil Nadu, India, is expected to begin operations in July 2025.

VinFast has also announced new product launches in selected markets: the EC Van electric cargo truck is scheduled for deliveries starting in November 2025 in Vietnam, and the new EB 6 electric bus model is expected to be available in September 2025. Furthermore, the VF 6 model has been launched in Indonesia, with deliveries set to begin in Q2 2025. The company plans to introduce next-generation platforms and a new electrical/electronic (E/E) architecture starting in Q3 2025, aiming to further reduce production costs and enhance product quality, performance, and affordability.

Significant financial support continues to come from VinFast’s key shareholders. Vingroup intends to provide up to VND 35,000 billion (approximately USD 1.4 billion) in additional loans through 2026, of which VND 30,571.3 billion (approximately USD 1.2 billion) had already been disbursed as of May 31, 2025. Additionally, the company’s founder and CEO, Mr. Pham Nhat Vuong, has pledged to provide up to VND 50,000 billion (approximately USD 2.0 billion) in free grants to the company and its subsidiaries, of which VND 20,500 billion (approximately USD 825.4 million) has already been delivered. This support is essential to VinFast’s continued growth.

Outlook

VinFast management expressed satisfaction with the company’s progress. Chairwoman Madam Thuy Le noted that, although the first quarter is usually the slowest of the year, Q1 2025 deliveries surpassed total deliveries in the first half of last year—marking an encouraging start to 2025 amid global uncertainty. CFO Ms. Lan Anh Nguyen added that the business is at an inflection point, as scale advantages are starting to drive stronger operating leverage, alongside ongoing cost-reduction and efficiency efforts.

The company maintains its 2025 delivery goal: to at least double its global deliveries while continuing to monitor the evolving macroeconomic environment. This goal reflects the company’s current views and is subject to change. As a growing EV manufacturer, VinFast operates in a competitive environment and faces various risks, including the availability of government incentives, changes in trade policies, cost control, brand reputation, supply of raw materials, and consumer demand.

 conclusion

VinFast’s Q1 2025 earnings reflect significant year-over-year operational growth, combined with efforts at strategic streamlining and realignment. Despite ongoing losses, the improvements in gross margins and the robust shareholder support point to a clear path aimed at stabilizing operations and achieving future profitability. The move to an agency model and new product launches are critical steps in VinFast’s effort to expand its global presence and meet its ambitious 2025 delivery targets. It is important to note that forward-looking statements involve risks and uncertainties and should not be construed as direct investment advice.