VinFast's Journey to Electrifying Profits: Beyond 2027

VinFast, Vietnam's electric vehicle manufacturer, anticipates breaking even after 2027, owing to expansion and rising costs. Despite initial growth plans in the U.S. and Europe being downscaled, the firm remains focused on increasing global deliveries and faces stiff competition from Chinese EV brands.

VinFast, Vietnam's leading electric vehicle maker, is now forecasting a break-even point after 2027 as the company pushes forward with ambitious expansion plans and contends with escalating costs, according to insider sources. The Nasdaq-listed company has already made strides into markets including Indonesia, India, and the Philippines.

However, VinFast has tempered its initial aggressive growth targets in the U.S. and Europe, as financial strains saw the carmaker record a net loss of nearly $4 billion last year. Having switched fully to electric production in 2022, the company initially aimed for profitability at the gross income level by 2024, shifting this target first to 2025 and now beyond 2027.

Amid rising global fuel prices partly spurred by geopolitical tensions, VinFast aims to bolster EV adoption. The company relies on substantial financial support from founder Pham Nhat Vuong and Vingroup, but also faces fierce competition from Chinese automakers like BYD and Geely within Vietnam's growing EV market.

(With inputs from agencies.)