This ASEAN Electric Vehicle Manufacturer Willing to Incur Losses to Build Factory in the US
Jakarta, CNBC Indonesia - Vietnamese electric vehicle manufacturer VinFast reported a major loss in the fourth quarter of 2025 amid the company’s aggressive expansion push, namely the construction of a factory in the United States.
VinFast recorded a substantial loss of 35.2 trillion dong (US$1.34 billion) in the final quarter of 2025. This figure rose 46.5% from the same period in 2024 and increased 15% from the previous quarter. It was explained that the book value adjustment for the planned factory in North Carolina contributed a loss of US$235.6 million.
“We are committed to the US market and continue to prepare for it,” said VinFast Chairman Thuy Le, quoted from Channel News Asia, cited on Thursday (19/3/2026).
She added that the company targets an early launch of the factory in early 2028. However, VinFast previously delayed the factory’s construction in 2024 due to uncertainties in the electric vehicle market.
This is because, since then, several governments in various countries have begun reducing EV purchase incentives due to economic pressures.
EV Deliveries Surge
Nevertheless, demand in Vietnam remains strong, contributing nearly 80% of the total 86,557 EV units delivered by VinFast in the fourth quarter. This number jumped 127% from the third quarter and rose 63% year-on-year.
Two-wheeled vehicle deliveries even surged more than 450% from the previous year to nearly 172,000 units. This surge was driven by Hanoi’s policy banning petrol-fuelled motorcycles in the city centre starting from mid-year.
VinFast targets global deliveries of at least 300,000 EV units this year, as well as expanding its two-wheeled vehicle business by 2.5 times the 2025 volume. The targeted markets include India, Indonesia, Malaysia, Thailand, and the Philippines.
The company also plans to launch range-extended electric vehicles (REEVs) in Vietnam in 2027. These vehicles are equipped with a small petrol engine to recharge the battery and are considered a transitional solution in areas with inadequate charging infrastructure.
“We see range extender technology as a practical interim solution in the transition from internal combustion engines to full electric vehicles,” said VinFast senior executive Anne Pham.
Costs Pressuring Margins
The free charging programme launched in December 2024 also increased the company’s costs, although on the other hand, it boosted sales.
“This programme is highly appreciated by customers, even by dealers. It is one of the best ways to convince the public to switch to EVs,” said Thuy Le.
Throughout 2025, VinFast’s revenue surged 105% to US$3.6 billion. This company, a subsidiary of the Vingroup conglomerate, targets reaching break-even by the end of this year.
However, analyst from Third Bridge, Ollie Coughlin, warns that VinFast’s high cash burn rate raises questions about the company’s ability to fund the capital expenditures (capex) required.