VinFast’s 2023 Revenue in the US Reaches 159 Billion Dong
VinFast, the Vietnamese automotive company, has submitted a detailed report to the US Securities and Exchange Commission, revealing that its revenue for the year 2023 is projected to exceed 28.7 trillion dong, representing a 92% increase compared to 2022.
Vietnam remains VinFast’s key market, accounting for 97.4% of its revenue, with nearly 28 trillion dong generated. However, it is important to note that the company’s report also specifies revenue figures for each market.
According to the report, the US market is expected to contribute 159 billion dong in revenue for VinFast in 2023. In contrast, Canada, a market where VinFast recently expanded in 2023, recorded higher revenue at 578 billion dong.
Not only is VinFast selling cars in the US, but it is also constructing its first production plant in North America. This project involves an investment of up to $2 billion in the initial phase and will create thousands of jobs for local workers.
VinFast has stated that the US factory will be similar to its facility in Vietnam, featuring high levels of automation and targeting local suppliers to maintain flexibility. Furthermore, customers who purchase VinFast vehicles manufactured in the US may be eligible for a $7,500 electric vehicle tax credit.
In the US market, VinFast positions itself as a premium car brand. The VF 8 City Edition, the company’s flagship model, has an initial price of nearly $50,000. VinFast has already opened 13 showrooms in California and plans to open three more.
As of now, the electric vehicle manufacturer has 13 stores in California and six dealerships in five states: North Carolina, New York, Texas, Florida, and Kansas. With 75 registered dealers participating in its network, the company expects to reach approximately 130 sales points in North America and 400 worldwide by the end of 2024. Notably, sales through dealerships will significantly contribute to the overall sales in the second half of 2024.
2024 Plans
In the fiscal year 2024, VinFast aims to balance revenue growth and cost optimization. This will be achieved by leveraging cost optimization in production and materials while strategically investing in potential markets in the region.
To boost electric vehicle sales, VinFast will expand its distribution channels by leveraging the network and experience of its partners in each market.
Success in key markets like the US will solidify the company’s effective competitiveness in other markets and increase sales volume, particularly in untapped Asian markets with great potential.
At the International Indonesia Motor Show (IIMS), VinFast announced its entry into the Indonesian market with a unique lineup of electric vehicles, including VF 5, VF e34, VF 6, and VF 7. The designs of these models, along with their innovative battery leasing options, have received positive feedback.
The company has also signed a Memorandum of Understanding for cooperation with the first five dealerships in Indonesia and plans to establish a completely knocked-down (CKD) production base in the country. Following the signing of the Memorandum of Understanding, VinFast officially signed a memorandum of understanding to supply 600 electric vehicles to three Indonesian companies.
In India, shortly after announcing a Memorandum of Understanding with the Tamil Nadu state government, VinFast held a groundbreaking ceremony for its integrated electric vehicle production facility in Thoothukudi. With a vision to become a leading electric vehicle production center in the region, the plant aims to reach a capacity of producing up to 150,000 vehicles annually once it is fully operational.
VinFast’s unique battery leasing policy could significantly boost sales in new markets. This approach allows initial purchase prices and monthly operating costs of VinFast vehicles to be comparable, if not more competitive, than some gasoline-powered models on the market.
The second key objective for 2024 is cost optimization. VinFast is implementing initiatives to reduce material costs by 40% within two years of launching each model, both through technical efforts such as parts redesign and platform optimization, as well as supply and procurement initiatives such as internalization and supplier switching. Additionally, VinFast will continue to optimize production and other costs.
With an expanding distribution network, VinFast aims to deliver 100,000 vehicles in 2024. The bright macroeconomic prospects further support the company’s development strategies.
In conclusion, VinFast’s projected revenue growth in the US market for 2023 highlights the company’s ambition to become a global player in the automotive industry. The establishment of a US production plant and its entry into new markets like Canada and Indonesia demonstrate VinFast’s commitment to expanding its reach and solidifying its position as a premium electric vehicle brand. With its strategic plans for 2024, VinFast aims to achieve sustainable growth while remaining at the forefront of innovation in the electric vehicle sector.