Vietnam automaker VinFast receives 10,000 EV reservations in US

Vietnamese automaker VinFast had recorded about 10,000 reservations in the U.S. for its VF 8 and VF 9 electric vehicles from the VF8 debut in late 2021 to August 31, 2023.

VinFast, listed on the Nasdaq as VFS, disclosed the information in a filing dated September 21 sent to the U.S. Securities and Exchange Commission (SEC).

The firm is accepting orders for 17,000 VF 8 and VF 9 models globally. Overall, VinFast has received 18,000 reservations for its VF e34, VF 5, VF 8, and VF 9 vehicles.

As of June 30, approximately $9.7 billion had been deployed to fund operating expenses and capital expenditures of VinFast since 2017 by Vingroup, according to the filing.

VinFast delivers 11,315 EVs in H1/2023

VinFast delivered 9,535 EVs in Q2/2023 and 1,780 in Q1/2023 globally, according to the company’s unaudited report sent to the Nasdaq. The total result of 11,315 EV deliveries in H1/2023 did not match VinFast’s July disclosure of delivering 11,638 EVs in H1/2023 when the firm was not listed on the Nasdaq.

E-scooter deliveries reached 10,182 in Q1/2023 and 9,757 in Q2/2023, VinFast noted.

On this performance, VinFast made a total revenue of $334.1 million in Q2/2023, up 131.2% year-on-year and quadruple that of Q1/2023. Its net loss improved to $526.7 million, down 8.2% from Q2/2022.

Market expansion

VinFast also noted its market expansion plans starting at the beginning of 2024. For its direct distribution model, the automaker plans to roll out dealership networks in market clusters such as Vietnam, North America, Europe (France, Germany, Netherlands), and other new markets, including, but not limited to, Indonesia, India, the rest of Europe and the Middle East.

VinFast has also identified Indonesia from among seven new market clusters as a key potential market for the establishment of manufacturing facilities for its EVs and batteries thanks to the relatively low cost and availability of domestic raw materials.

Based on the company’s evaluation of the market opportunity in Indonesia, a preliminary investment target of up to $1.2 billion has been set for Indonesia in the long-term. The target includes $150-200 million that the company envisions for the establishment of a complete knock-down (CKD) vehicle factory, with production capacity in the range of 30,000 and 50,000 units per year and a target production start date no later than in 2026.

For its third-party distribution model, VinFast is looking at an additional 40-50 markets to engage with high-quality distributors to import and distribute its cars.