VinFast Relies on IPO and Electric Taxis to Achieve Profit by 2027

The ambition of Vietnam’s electric vehicle manufacturer VinFast to become a global player has entered a crucial phase. After years of burning capital for expansion, the company under the Vingroup conglomerate now targets a break-even point in 2027, a delay from its previous goal. This postponement was acknowledged directly by Vingroup Chairman and VinFast founder Pham Nhat Vuong amid pressures from expansion costs and increasingly tight competition in the global electric vehicle market. That target indicates an aggressive scale of growth. However, behind the surge in sales volume, the company still faces major challenges in proving its business model is sustainable. “This IPO is expected to provide enormous value to Vingroup,” said Vuong regarding plans for an initial public offering (IPO) of its Green SM electric taxi unit, targeted for the second half of 2028. VinFast’s expansion model has so far relied on rapid growth even at the cost of substantial losses. Based on a report cited by Nikkei, VinFast’s losses widened to $3.9 billion US or equivalent to around Rp67.35 trillion (assuming an exchange rate of Rp17,270 per US dollar), even as its electric car sales doubled. This situation illustrates the paradox often faced by new electric vehicle companies: volume growth does not automatically lead to profitability. Reuters reported that VinFast is now expanding its market in Southeast Asia such as Indonesia, India, and the Philippines, although its ambitions in the United States and Europe are more cautious than initial plans. Several analysts cited by Reuters even assess that profitability may only emerge in the 2027-2028 range. “There is a consistent view across the analyses we monitor that the gross profit break-even point can be achieved around 2027-2028,” said a VinFast spokesperson, as quoted by Reuters.