Vietnam-Based EV Manufacturer VinFast Expects Sevenfold Rise in Sales

VinFast, Vietnam’s EV manufacturer is expecting a tremendous boom in its EVs sales with an estimation of around  50,000 electric vehicles (EVs) to be sold this year. This is almost a sevenfold increase over 2022 with its export ramping up for North America and shipment beginning for Europe. This was disclosed by the firm during the AGM (Annual General Meeting).

Speaking at the AGM, Pham Nhat Vuong, Chairman of the country’s largest conglomerate Vingroup and Founder of its auto unit VinFast, said, “We could hit break even as soon as the end of 2024 if things go as planned.”

Vuong  informed that the sales are expected to be between 40,000 and 50,000 cars this year, up from EV sales of about 7,400 in 2022 when the company’s only market was Vietnam.

In addition, Vuong said, “VinFast planned to add two other models to its lineup: an electric pickup truck and a battery-powered city or “mini car.” The latter would be priced between $10,000 and $12,000, he said, making it an ultra-low-cost EV.”

He further infomred, “It was the first outlook VinFast has offered since announcing earlier this month it would list in the United States via a merger with special purpose acquisition company (SPAC) Black Spade Acquisition Co.”

VinFast, which began operations in 2019, has a plant in Vietnam and plans for a second plant to open in North Carolina in 2025. Moreover, the company also faces competition from EV giants such as Tesla Inc, that is bringing the rates of EVs down and  bringing a range of new EVs to the market amid a weakening global economy.

“When the market is robust again and sentiment improves…VinFast will bring back financial happiness,” Vuong noted.

The firm informed that VinFast, which is looking to break into the U.S. and European markets, had earlier received funding pledges of $2.5 billion from Vingroup and Vuong. It was further informed that the funds received  as of the end of last year just over $8 billion by VinFast from these companies have not yet made a profit.

However, as per the firm, VinFast’s SPAC deal is expected to close in the second half of 2023. In its written presentation at the meeting, it said  that the listing opens up potential fundraising opportunities for Vingroup in general. It is also reported that VinFast’s electric pickup truck would face competition from Rivian Automotive Inc, Ford Motor Co’s F-150 Lightning and other models. The entry-level, small EV would face competition from Chinese-made electric vehicles, including from BYD.