Vietnamese electric vehicle maker VinFast's Q1 loss widens on higher spending as deliveries rise

VIETNAMESE electric vehicle (EV) maker VinFast (VF) reported on Monday its sixth consecutive quarterly net loss as it continues to ramp up spending to boost sales volumes.

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VinFast reported a net loss of $712.4 million for the first quarter, less than the $1.3 billion loss in the previous quarter but 20% more than a year earlier. Analysts' average forecast was for a $616.3 million loss, according to LSEG data.

Revenue jumped 150% to $656.5 million in January-March, compared with analysts’ average estimate of $520 million.

Deliveries leapt nearly 300% to 36,330 vehicles in the quarter, mainly driven by sales in Vietnam, its biggest market.

VinFast shares were up 10.53% in pre-market trade.

Backed by Vietnam’s largest conglomerate, Vingroup, VinFast continues to face challenges due to weak consumer demand, stiff competition, and a 25% tariff the US has imposed on imported vehicles. VinFast previously identified the US as a key growth market.