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VinFast reported a wider net loss in the last quarter of 2025, mainly due to higher impairment charges linked to its planned US manufacturing facility. Despite this, the company saw strong growth in electric vehicle deliveries, especially in Vietnam, and a sharp rise in two-wheeler sales driven by policy changes. It is now preparing to restart construction of its North Carolina plant and expand globally across Asian markets. VinFast is also planning new hybrid-like REEV models and aims to reach break-even soon, although concerns remain around its high capital spending needs.
VinFast reported a significant increase in its fourth-quarter losses for 2025, mainly due to higher impairment charges related to its proposed manufacturing facility in North Carolina, US. The company recorded a net loss of around VND 35.2 trillion (USD 1.34 billion), which was about 46.5% higher than the previous quarter and 15% higher compared to the same period a year ago. Adjustments in the book value of the US plant contributed nearly USD 235.6 million to the loss. Advertisement
The company had earlier paused construction of the North Carolina facility in 2024 due to uncertainty in the global electric vehicle (EV) market. It has now indicated that work on the plant is expected to resume during the current year. Its leadership stated that the company remains committed to the US market and has continued preparations in the background, with a soft launch currently targeted for 2028.
Globally, EV demand has shown signs of slowing as several governments have reduced incentives, and economic pressures have impacted consumer spending. However, Vietnam continues to remain a strong market for VinFast. Nearly 80% of its total fourth-quarter EV deliveries of 86,557 units came from the domestic market. This marked a 127% increase compared to the previous quarter and a 63% rise on a year-on-year basis.
The company also reported strong growth in its two-wheeler segment, with deliveries rising over 450% annually to nearly 172,000 units. This surge was largely driven by policy measures in Hanoi, where petrol-powered motorbikes are set to be banned from the city centre starting mid-2026.
VinFast is targeting global EV deliveries of at least 300,000 units this year. At the same time, it plans to expand its two-wheeler business to 2.5 times its 2025 volume. Key focus markets for expansion include India, Indonesia, Malaysia, Thailand and the Philippines, indicating a broader push into emerging Asian markets.
In terms of product strategy, the company is preparing to introduce range-extended electric vehicles (REEVs) in Vietnam in 2027. These vehicles will use small petrol engines to recharge batteries and are being positioned as a transitional solution in markets where charging infrastructure is still developing. The company's executives indicated that this technology is being seen as a practical bridge between traditional internal combustion engines and fully electric vehicles.
On the financial side, VinFast's margins have been impacted by rising costs, including a free-charging programme launched in late 2024. While the initiative increased expenses, the company noted that it helped boost customer adoption and supported dealer sales efforts. The leadership acknowledged that the programme is costly but views it as a long-term investment in market development.
For the full year, the company's revenue more than doubled, rising 105% to USD 3.6 billion. Backed by its parent group Vingroup, VinFast has stated that it is aiming to reach break-even by the end of this year. However, analysts have pointed out that its high cash burn rate and continued capital expenditure requirements could pose challenges in funding its expansion plans.
Source Reuters
5th Jun, 2025
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