VinFast targets domestic break-even by 2027, global profitability next
Theedgesingapore.com, 27 Jul '26
Vietnamese electric vehicle manufacturer VinFast Auto is on track to reach break-even in its home market by 2027 and globally shortly afterwards, according to Anne Pham, the company's Deputy Chief Executive Officer of Investment, speaking at a business summit in Singapore.
Pham said the company's new low-cost VF 2 model, priced at VND 188 million (US$ 7,145), including the battery, is expected to support domestic sales following its launch in early July.
VinFast continues to face challenges as it seeks to expand its global presence and compete with manufacturers including China's BYD. The company reported wider losses in the first quarter as the costs associated with its international expansion increased.
The company, which has opened factories in India and Indonesia, is also at risk of losing permission to build its delayed and downsized plant in North Carolina. In May, the state filed a lawsuit alleging that VinFast had breached agreements related to the planned manufacturing complex and is seeking to reclaim the project site.
Pham declined to comment on the company's plans for its US factory but said VinFast's North American sales strategy remains "on course". VinFast is open to acquisitions and partnerships as it expands into additional markets, Pham said. She did not identify the countries under consideration but stated that the company plans to increase the localisation of manufacturing in India and Indonesia.
On May 27th, shareholders approved VinFast's proposal to transfer its Vietnam factories to a separate company as part of efforts to reduce debt. According to the company, the transaction would generate VND 13.3 trillion for VinFast.
Pham said the Middle East war, which has resulted in higher fuel costs, has contributed to increased electric vehicle adoption in recent months. She added that VinFast's sales in Vietnam have remained "fairly strong", while deliveries in Indonesia and the Philippines are increasing.
According to an exchange filing, the EV manufacturer reported that deliveries in Vietnam increased by 72% during the first six months of the year compared with the same period last year. VinFast reported a net loss of VND 28.1 trillion in the first quarter, an increase of 58.9% compared with the corresponding period last year.
