Vietnamese electric vehicle manufacturer VinFast Auto Ltd. (NASDAQ: VFS) has recently released its financial results for the first quarter of 2026. The report indicates that while the company's global revenue increased by nearly 42% year-on-year, its net loss expanded by approximately 59%, impacted by accounting for a free charging program and expenses related to factory expansion.
According to the earnings report, VinFast's global revenue for Q1 reached VND 23.11 trillion (approximately USD 9.2 billion), a significant increase from VND 16.31 trillion in the same period last year. This revenue growth was primarily driven by strong performance in its domestic Vietnamese market and contributions from emerging markets such as India, Indonesia, and the Philippines.
In terms of deliveries, the company delivered 58,577 electric vehicles in the first quarter, a 61% increase year-on-year, with overseas markets contributing approximately 8% of this figure. Deliveries of electric motorcycles and electric bicycles surged to 143,136 units, representing a dramatic 219% year-on-year growth. In the Vietnamese market, VinFast has maintained its leading position in the automotive market since September 2024, achieving a record 17% market share in the two-wheeler segment in March.
Despite the robust revenue growth, the company's profitability continues to face challenges. The financial report shows that the operating loss widened to VND 22.86 trillion, and the net loss reached VND 28.11 trillion (about USD 11.2 billion), an increase of nearly 59% compared to the previous year. The gross margin deteriorated to negative 73.6%, down from negative 46.4% in the prior quarter.
The company attributed the widening losses to two main factors: first, pressure on the average selling price in the short term due to a million-unit supply agreement with GSM; second, the expansion of a free charging program, which resulted in USD 192 million in revenue deductions. Additionally, the company is advancing an asset-light strategy, planning to sell its Vietnamese manufacturing operations to an entity controlled by its founder for approximately USD 530 million.
Looking ahead, VinFast maintains its full-year target of delivering 300,000 electric vehicles and plans to increase electric motorcycle production by at least 2.5 times. The company also stated it will continue to deepen its presence in Southeast Asian and Indian markets while reaffirming its long-term commitment to the U.S. market.
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