VinFast's loss expands in the fourth quarter, optimistic about meeting 2024 sales targets.

On Thursday, VinFast, a Vietnamese electric vehicle (EV) manufacturer, announced that its fourth-quarter net loss had increased by 3.4% compared to the previous three months. Despite this, the company aims to nearly triple its vehicle sales this year as it expands into new markets.

In the last quarter of 2023, VinFast's net losses increased by 1.3% to $650.1 million compared to the same period in 2022.

This year, it aims to increase deliveries to 100,000 units, compared to the 35,000 units made in 2023, as it missed a 50,000 unit target due to slow EV adoption in some regions and increased price competition.

Chairwoman Le Thi Thu Thuy stated to Reuters that the company is confident in achieving guidance this year as they have expanded globally and offer all vehicles, including the right-hand drive model.

In contrast to other automakers, those that produce electric vehicles (EVs) have reduced their sales targets and cut back on investment plans due to declining demand in significant markets, including the United States.

The majority of VinFast's deliveries, approximately 70%, are directed to its affiliate Green SM (GSM), a taxi operator and leasing provider supported by VinFast CEO Pham Nhat Vuong.

Thuy stated that fewer than 1,000 units were sold in North America. However, she added that new dealerships would increase VinFast's sales this year compared to its direct sales model.

LSEG data shows that fourth-quarter revenue was $437 million, below the average analyst estimate of $570.9 million, while full-year revenue increased by 91% to $1.2 billion.

VinFast, founded in 2017 and beginning EV production in 2021, has announced plans for international expansion. The company is building a factory in North Carolina, set to launch in 2025, and planning its first manufacturing facilities in India.

Thuy stated that the company aimed to focus on two major markets, Indonesia and India, by introducing a battery leasing plan where customers would pay a monthly fee equivalent to or lower than the gasoline cost for similar vehicles.

Thuy stated that the company plans to establish factories in India and Indonesia by 2026, while its Vietnam plant currently meets the demand for cars in the U.S and other markets.

After its Nasdaq debut in August, VinFast's market capitalization surged to $85 billion, surpassing that of legacy companies. However, its U.S. market entry coincided with intensifying price competition led by .

Premarket trading saw a 2.66% decline in shares of VinFast, which is backed by Vietnam's largest conglomerate, Vingroup.

After the blackout period ends on Feb. 26, VinFast will commence a fundraising process to increase the number of shares available for public trading to 10-20% by the end of the year from the current 2%.