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VinFast reported a wider net loss in the final quarter of 2025, mainly due to higher impairment charges linked to its proposed US manufacturing plant. Despite financial pressure, the company saw strong growth in electric vehicle deliveries, particularly in Vietnam, and a sharp rise in two-wheeler sales driven by policy changes. VinFast is now planning to resume construction of its North Carolina facility and is targeting global expansion across key Asian markets. It also aims to introduce range-extended electric vehicles in 2027 as part of its broader strategy to address infrastructure gaps.
Vietnamese electric vehicle maker VinFast reported a significant increase in its net loss for the fourth quarter of 2025, mainly due to higher impairment charges related to its planned US manufacturing facility. The company posted a net loss of about INR 1.34 billion equivalent, marking a 46.5% increase compared to the same period a year ago and a 15% rise from the previous quarter. A major portion of this loss, around USD 235.6 million, was attributed to adjustments in the book value of its proposed plant in North Carolina. Advertisement
The company had earlier paused construction of the US plant in 2024 due to uncertainty in global EV demand. However, it now plans to restart work on the project within the year, signalling renewed commitment to the American market. During a recent investor interaction, Chairperson Thuy Le indicated that the company remains focused on its US strategy and is working towards a soft launch timeline in 2028.
Globally, the EV sector has seen reduced policy support in some regions as governments scale back incentives amid economic pressures. This has impacted demand in several markets. However, VinFast's performance in its home country Vietnam remained strong, contributing nearly 80% of its total fourth-quarter deliveries.
The company delivered 86,557 electric vehicles during the quarter, reflecting a 127% increase from the previous quarter and a 63% rise year-on-year. In addition, its two-wheeler segment recorded rapid growth, with shipments rising more than 450% annually to nearly 172,000 units. This surge was largely supported by policy measures in Hanoi, where petrol-powered motorbikes are set to be restricted in the city centre starting mid-year.
VinFast is targeting at least 300,000 EV deliveries globally this year and plans to significantly expand its two-wheeler segment to 2.5 times its 2025 volume. The company has identified key growth markets including India, Indonesia, Malaysia, Thailand and Philippines as part of its international expansion strategy.
Looking ahead, the company also plans to introduce range-extended electric vehicles (REEVs) in Vietnam in 2027. These vehicles use small petrol engines to recharge batteries and are positioned as a transitional solution for markets where charging infrastructure is still developing. Senior executive Anne Pham explained that the company sees this technology as a practical interim step between internal combustion engines and fully battery-powered vehicles.
On the cost side, VinFast has been investing heavily to drive adoption. A free-charging programme introduced earlier has increased operational expenses but also contributed to higher sales. Thuy Le stated that the initiative has been well received by both customers and dealers and has helped accelerate EV adoption, even though it remains a costly effort.
For the full year, VinFast's revenue more than doubled, rising 105% to USD 3.6 billion. The company, backed by Vingroup, is aiming to reach break-even by the end of this year. However, market analysts, including Ollie Coughlin, have pointed out that the company's high cash burn rate could pose challenges in funding its future capital expenditure requirements.
Source Reuters
5th Jun, 2025
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