VinFast’s losses continue to mount but it remains just as ambitious as ever and is still targeting a public listing in the United States before the end of the year.
A recent regulatory filing by VinFast in the U.S. reveals that its net loss widened to $599 million in the first quarter of 2023. These losses came as it ramps up production while also establishing factories and paying for marketing, sales, and servicing. VinFast may be backed by Vietnam’s richest man, Pham Nhat Vuong, but it still has some way to go before becoming a profitable business.
The filing states that parent company Vingroup JSC, as well as affiliates and external lenders, have spent around $9.3 billion on the company since 2017, Auto News reports. Despite this, Vuong has claimed that VinFast could be profitable after 2025 and that it may break even by the end of 2024.
VinFast is expected to complete a merger deal with special purpose acquisition company Black Spade Acquisition Co by July 20 and should go public in the second half of the year. It is thought the deal will give VinFast an equity value of around $23 billion. While that sounds great, VinFast needs to sell a significant number of electric vehicles if it is to ever establish itself as a serious player in the electric vehicle market.
Read: VinFast Issues First U.S. Recall For VF 8 Infotainment Screen That Could Go Blank
The company says it may sell between 45,000 and 50,000 electric vehicles this year and could expand into other market segments, with electric pickup trucks and even a mini car. It started pre-construction work on its North Carolina factory in the third quarter of last year and while it was initially planning to start production at the site in 2025, it removed any time reference in its latest regulatory filing.
