VinFast Aims for Break-Even in Vietnam by 2027 Amid Global Expansion Challenges

Vietnamese electric vehicle maker VinFast is on track to achieve breakeven in its home market by 2027 and reach overall global profitability shortly thereafter, according to Anne Pham, Deputy CEO of Investment at the company. Its newly launched affordable model, the VF 2—priced at VND 188 million (approximately USD 7,139, including the battery)—began pre-orders in early July and garnered around 29,000 orders within three days, a development expected to further boost sales in Vietnam. In the first half of 2024, VinFast delivered 115,916 vehicles to Vietnamese customers, a 72% year-over-year increase. The company has set a global EV delivery target of at least 300,000 units for 2024, exceeding its projected sales volume of approximately 200,000 units for 2025. However, VinFast faces multiple challenges in its global expansion. In the first quarter of 2024, the company reported a net loss of VND 28.1 trillion (about USD 1.1 billion), a 58.9% increase compared to the same period last year. Its factory project in North Carolina, USA, has experienced delays and downsizing, and the company risks losing its construction permit. In May, the state of North Carolina filed a lawsuit against VinFast, alleging breach of the manufacturing site agreement and demanding the return of the project land. Anne Pham declined to comment on the factory plans but affirmed that VinFast’s North American sales strategy remains on track. VinFast has already established manufacturing facilities in India and Indonesia and plans to increase local content ratios at both sites. While the company does not rule out entering new markets through acquisitions or strategic partnerships, it has not specified its next priority countries. Additionally, in May 2024, VinFast’s shareholders approved a resolution to spin off its Vietnamese manufacturing operations into a separate entity to reduce debt, a move expected to raise VND 13.3 trillion. Anne Pham noted that recent Middle East conflicts have driven up fuel prices, accelerating EV adoption, and highlighted sustained growth in deliveries across Vietnam, Indonesia, and the Philippines.