VinFast Auto Q2 2025 Earnings Report

VinFast Auto EPS Results

• Actual EPS: -$0.35
• Consensus EPS: -$0.25
• Beat/Miss: Missed by -$0.10
• One Year Ago EPS: N/A

VinFast Auto Revenue Results

• Actual Revenue: $662.99 million
• Expected Revenue: $679.61 million
• Beat/Miss: Missed by -$16.62 million
• YoY Revenue Growth: N/A

VinFast Auto Announcement Details

• Quarter: Q2 2025
• Date: 9/4/2025
• Time: Before Market Opens
• Conference Call Date: Thursday, September 4, 2025
• Conference Call Time: 8:00AM ET

VinFast Auto (NASDAQ:VFS), founded in 2017 as a subsidiary of Vietnam’s Vingroup, specializes in the design, development and manufacturing of electric vehicles and related mobility solutions. Headquartered in Haiphong, Vietnam, the company operates an integrated production complex that houses research and development, manufacturing and assembly facilities. Backed by Vingroup founder Pham Nhat Vuong, VinFast has rapidly expanded its product line from its first electric SUV, the VF e34, launched in late 2021, to a diverse portfolio of battery electric cars and electric scooters.

The company’s vehicle lineup includes the VF 8 and VF 9 sport utility vehicles, as well as electric passenger cars tailored for markets in Asia, North America and Europe. In addition to four-wheeled vehicles, VinFast produces electric scooters and battery systems for commercial and personal use. The company offers an integrated ecosystem of hardware and software, including mobile applications for vehicle monitoring, over-the-air updates and an expanding network of charging infrastructure.

VinFast has pursued an aggressive global expansion strategy, establishing sales and service operations in key markets such as the United States, Canada, Germany and France. In 2022, VinFast opened its first North American delivery center in Los Angeles and began site development for a manufacturing facility in North Carolina, aiming to localize production and strengthen its presence in the U.S. market.

Leadership at VinFast reflects a blend of automotive and technology expertise. Co-founder Le Thi Thu Thuy serves as Chief Executive Officer, overseeing global operations, while a team of executives with backgrounds in engineering, supply chain and finance supports the company’s growth objectives. As VinFast continues to scale, it remains focused on innovation, sustainability and its mission to accelerate the world’s transition to electric mobility.

VinFast Auto Q2 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: VinFast achieved 172% year-over-year EV delivery growth in Q2 and drove 92% revenue growth in its home market, putting it on track to double full-year deliveries in 2025.
• Positive Sentiment: Manufacturing capacity expanded with the inauguration of two new factories in Vietnam and India, alongside ongoing R&D investments in its next-generation vehicle platform.
• Positive Sentiment: International rollout gained momentum with pre-bookings in India, Indonesia contributing 5% of Q2 deliveries and VinFast capturing an estimated 25% share of the Philippine battery-electric market.
• Positive Sentiment: The e-scooter and electric bike segment surged, delivering 69,580 units in Q2, a 432% increase year over year, boosted by favorable policies and early-mover advantages.
• Negative Sentiment: The company posted a $812 million net loss with a gross margin of –20.9% excluding adjustments, and operating cash burn remained high at roughly 101% of Q2 revenue.

Presentation

[Operator]

Good day, and thank you for standing by. Welcome to VinFast Second Quarter twenty twenty five Financial Results and Q and A Webcast. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. Please be advised that today's conference is being recorded.

[Operator]

I'd now like to hand the conference over to your first speaker, Ms. Amanda Bay, Vice President of Investor Relations. Please go ahead.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, operator, and good morning, everyone. Welcome to VinFast quarterly earnings call. Joining me today are Chairwoman of the Board, Madame Tui Lei and our CFO, Ms. Lana Nguyen. Before I turn the call over to Madame Tui, let me remind you that some of the statements on this call include forward looking statements under federal securities law.

[Amandae Baey, VP - IR at VinFast Auto]

These include, without limitation, statements regarding the future financial and operating outlook, guidance, macroeconomics, industry trends, company initiatives and other future events. These statements are based on the predictions and expectations as of today. Actual events or results may differ due to a number of risks and uncertainties. We refer you to the cautionary language and the risk factors in our most recent filings with the U. S.

[Amandae Baey, VP - IR at VinFast Auto]

SEC. In addition, management will refer to non GAAP financials during this call. A discussion of why we use non GAAP and the information regarding the reconciliation of our non GAAP versus GAAP financials is available in the press release that we issued this morning. With that, I would like to invite Madam Twee to start with the management remarks.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Good morning, everyone, and thank you for joining us today. It has been a while since we last spoke. I would like to begin with three important takeaways from the second quarter. First, our home market Vietnam remains a pillar of strength helping to drive another robust quarter. We ended Q2 with delivery growth of 172% year over year and revenue growth of 92% year over year.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

We are on track to achieve our 2025 delivery target, which is to at least double what we deliver in 2024. Second, we remain focused on international expansion with a strategy anchored around products, markets and manufacturing. Our manufacturing capacity has expanded with the inauguration of two new factories in Vietnam and India, making significant progress in doubling our design capacity. At the same time, we continue to invest in R and D for our next generation vehicle platform. Finally, our financial position has been strengthened with the spin off of our completed R and D asset, and we continue to be backed by our founder and parent company.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Before diving into the specifics, I would like to take a step back and look at the global EV landscape. Macroeconomic headwinds and evolving regulations have introduced greater uncertainties in some markets, while in others, supported policies are accelerating adoption and intensifying competition. Fintech is not immune to these changes, but our long term vision remains firmly intact, that is to be a global leader in electric mobility. We continue to see strong momentum in our business supported by the expansion of our green mobility ecosystem internationally and regulatory tailwinds driving EV adoptions in our home market. To capture these opportunities, we are making deliberate investment in R and D and customer incentives to drive adoption.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

These are strategic choices to reinforce our long term position in core markets. With that, let me begin with our delivery recap before moving to key market updates. First, let's look at EVs. In Q2, we delivered 35,837 units, representing 172% increase year over year. Over the 2025, we delivered 72,167 units, representing a 223% increase year over year.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

VF3 and VF5 continue to be the company's two best selling models in the 2025, contributing 61% of total deliveries. VF6 model ranked first, contributing 12% of total deliveries. Deliveries from the Green Series, which include our electric A and C segments SUVs, accounted for 15% of total deliveries during the quarter. Our EV deliveries to related parties, which include GSM and others accounted for 22% of Q2 deliveries. Most importantly, our B2C deliveries have now accounted for over 70% of total deliveries for four consecutive quarters through Q2 twenty twenty five.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

About e scooter and electric bikes, we delivered 69,580 units in Q2, marking a 55% rise quarter over quarter and 432% increase year over year. Accumulatively in the 2025, we delivered 114,484 units, marking a 447% increase year over year. The incredible growth in the two wheeler business was bolstered by favorable government policies to further accelerate EV adoptions, which I will elaborate further later on, along with VinFast's ongoing efforts to support this transition as an early mover in green mobility. As of June 30, we had three ninety four showrooms globally and provided customers with access to over 1,000,000 charging points across our markets. Now let's turn into market updates, starting with Vietnam.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Vietnam's auto market grew rapidly in the 2025 with deliveries rising 1.6 times year over year to 254,794 units driven by surging EV demand. VinFast outpaced the market with 3.4x volume growth and 67,569 units more than the combined delivery of the next two players. We have maintained our number one position in Vietnam since September 2024. Three of the five best selling models in the country during the 2025 were VinFast EVs, including our VF6, our B segment electric SUV, which has maintained strong consistent momentum with monthly deliveries exceeding 1,000 units throughout the first half of the year. Policy momentum is also accelerating EV adoption as Vietnam's goal is to have 30% of cars in circulation to be electric by 2030 and one hundred percent of cars in taxis to be electric by 02/1950.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

FinFET is at the heart of this ambitious goal. Since 2022, EV friendly incentive including lower special consumption tax for EVs, registration fee exemption until 2027 and zero percent import duty on green auto parts have been implemented. In second quarter twenty twenty five, Hanoi and Ho Chi Minh City have announced plan to phase out gasoline motorbike in the urban areas, further accelerating the shift to electrification. Together with public private investment in charging infrastructure, Vietnam is merging as one of the most ambitious EV adopters in Southeast Asia with EV penetration already around 30% as of June 2025. We are also making strong progress in B2B electrification.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Finfast and GSM have partnered with nearly all major taxi operators to convert their fleet to EVs, a strong endorsement of our vehicle, technology and long term vision. Bringing this all together, Finfast has set a flywheel in motion, consumer education, attractive EV and e scooter offering and our green mobility ecosystem are working in tandem with supportive regulations to accelerate electrification in Vietnam. The same model underpins our international expansion strategy. The opportunity in our key Asian markets is compelling, growing middle class, low vehicle ownership rates and even lower EV penetration. With broadly similar socioeconomic conditions, these markets are prime for EV adoption.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Let's start with India. We opened for pre booking of our VX6 and VX7 in mid July, followed by the inauguration of our manufacturing facility in Tamil Nadu this August, marking a significant milestone in our entry into Indian market. Finfast India has signed strategic agreements with certain dealership groups to launch dealerships across 20 cities. This partner was carefully selected to deliver full service 3S support, sales, service and spare parts, in line with our customer first philosophy. As an early tier player EV engine in India, we are taking a disciplined approach.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Initial volume are expected to be modest as we focus on delivering strong customer satisfaction and protecting dealer profitability in a competitive market. Moving on to Southeast Asia. We continue to deepen our presence in expanding our green mobility ecosystem and product lineup to offer more choices to consumer. In Indonesia, our affiliate, VGreen is deploying charging port together with four partners. And in The Philippines, Bigreen and GSM have signed an MOU with Miranco, The Philippines' largest power distribution company to co develop charging stations and technical expertise.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Indonesia contributed approximately 5% of our total EV deliveries in the quarter, reflecting an early momentum in one of Southeast Asia's most promising market. The VF3 model recently awarded the best EV city car at the Indonesia International Motor Show represented 35% of our deliveries in the country. The vehicle is demonstrating a strong initial traction and is beginning to attract consumers from more established brand in the compact EV segment. To make EV even more accessible to Indonesian consumer, Finfast is offering a suite of competitive incentives including free charging, attractive financing rate and a resale value guarantee up to 90%. As of June 30, we have 24 showrooms in Indonesia, alongside with an authorized service network operated by local partners.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Underscoring our long term commitment to Indonesian markets, Fintech has joined the country's leading automotive industry association. On the manufacturing front, our CKD facility in Subang is on track for technical SOP by the 2025. During the quarter, GSM Indonesia has also been scaling rapidly with plans to expand its fleet and broaden its footprint into new cities. The business announced a strategic partnership with Goshen, Indonesia's second largest ride hailing platform, a move that significantly enhanced our visibility and reach in the country. We expect this increased exposure and ecosystem build out to drive B2C adoption, laying the groundwork for long term consumer growth.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Moving on to The Philippines. Electrification has largely been driven by the adoption of hybrids with battery electric vehicles, so representing a smaller but increasingly significant portion of the market. According to data from the Automotive Industry Association, Kempe, for the first six months, electrified vehicle sales stood at 13,419 units, of which battery electric vehicles account for 2,439 units. In the first half twenty twenty five, FinFET is capturing an estimated 25% market share in the battery electric vehicle segment, again, thanks to the VF3, whose unique design and attractive pricing appeal to Filipino consumers. A key part to our sales strategy is to focus on the fleet sales opportunity to large corporates.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

While it is still early days for our expansion in The Philippines, we believe that Filipino consumers will increasingly recognize the strength of our value proposition as we introduce more models alongside with GSM fleet expansion. GSM is disrupting the traditional taxi industry by becoming the first fully foreign owned company to operate taxis in The Philippines, starting with a fleet of 500 EVs. We've seen strong initial consumer interest in trying GSM and our sales team is actively looking to convert the enthusiasm into long term B2C sales by turning ride hailing passengers into VinFast owners. I'll move on to North America and Europe. We are continuing to right size our operational footprint following the strategic transition from direct to consumer to a dealer led distribution model.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

In August, our first third party dealership opened in California and we continue to focus on offering the best value in the market. In Europe, we expect to make our e Bus debut at Buswell Brussels in October, where we will showcase two e Bus models. Our brand reputation is enhanced by customer testimonial and word-of-mouth recommendation, and we want to thank our dealer partners and customers for trusting us throughout this transition period. As of June 30, we had 30 showrooms in North America and Europe, with over 80% of that being dealer's showroom. Turning into manufacturing and R and D activities in Vietnam, which are essential to our long term competitiveness.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

In June, we inaugurated our second factory in Vietnam located in Hatheng, Central Vietnam, completing construction and installation in under seven months, one of the fastest built auto plants in the world. The facility had an initial design capacity of up to 200,000 vehicles per year and will focus on compact urban EVs. It is also expected to attract suppliers to the zone, supporting our goal of reaching over 80% localization by 2026. Our innovation, the Lemo Green MPV, which is our first model and one of the next generation vehicle platform with Zonan EE architecture was delivered to customers in early August. With a diversified and evolving product portfolio, strengthened manufacturing base and next generation platform, Fintech is well positioned to meet diverse customer needs and accelerate the adoption of electric mobility globally.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Before I hand it over to our CFO, Lanai, I want to briefly explain the strategic spin off of completed R and D asset that we announced in August. FinFET transfer a portfolio of completed R and D asset into a new entity, Novatec, which our Founder, Mr. Fab Network, agreed to acquire for $1,600,000,000 in cash. The transaction is expected to close in Q3 and highlight Mr. Pham's continued commitment to supporting Finfast's long term growth.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Finfast will maintain access to all technologies transferred through licensing agreements, ensuring continuity in our innovation and product development roadmap. Now let me turn it over to Lanai for her remarks and discussions on financial.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

Thank you, Madam Tui, and hello, everyone. As Madam Tui explained, we see tremendous opportunities in our core Asian markets underpinned by raising consumer awareness and supportive government policies for electrification. To capture this momentum, we are accelerating our investments in promotion campaigns and customer incentives. These initiatives are essential to building long term brand equity and market share. At the same time, we remain committed to investing in R and D to advance our product road map.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

Now let me walk you through our results in more detail. The company's strategy in Q2 twenty twenty five continued to focus on driving top line growth. As a result, total revenue reported US663 million dollars representing a 92% year over year increase and a 2% quarter over quarter gain, driven by an increasing EV sales volume in Vietnam. Within our product portfolio, the VIAT3 sustained its strong momentum, emerging as the best selling car in Vietnam's auto market during the 2025. Our second best seller, the VF5, delivered a solid 35% year over year increase in the sales volume, while the VF6, our racing electric B SUV posted an impressive 297% year over year growth.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

Cost of goods sold for the quarter was US935 million dollars an increase of 66% year over year and 6% quarter over quarter, reflecting the continued ramp up in deliveries. Gross margin was negative 41% in the 2025 compared to negative 63% in the 2024 and negative 35% in the 2025. The improvement in gross margin over the 2024 was attributed to increased sales and improved costs. The decrease in gross margin compared to the 2025 was primarily driven by the higher warranty provision rates and increase in cost of vehicles sold excluding sales reduction relating to free charging program, NRV and other. Gross margin was minus 20.9% in Q2 twenty twenty five compared to minus 19.3% in Q1 twenty twenty five and minus 33.7% in Q2 twenty twenty four.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

Moving on to operating expenses. R and D expenses were US93 million dollars decreased 12% year over year and increased 16% quarter over quarter. The decrease in R and D costs compared to the 2024 was primarily due to a reduction in engineering and development costs. As VinFast has completed the product development work on multiple modules in the previous year, the increase in R and D costs compared to the 2025 was attributable to R and D costs in relation to its new modules, such as the Green Series and EC VAN. As noted previously, our existing models will undergo a technology refresh on the new vehicle platforms, which will drive additional R and D over the next twelve months.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

As a percentage of revenue, R and D in Q2 twenty twenty five was 14%, an improvement from 31% in Q2 twenty twenty four. SG and A expenses for the quarter was USD136 million, decreased 11% year over year and 9% quarter over quarter. The decrease over the 2024 was driven by no additional impairment charge being required for the battery production lines. The decrease compared to the 2025 was due to lower impairment charge for battery leasing activities. As a percentage of revenue, SG and A improved to 20% compared with the 23% in Q1 twenty twenty five and forty four percent in Q2 twenty twenty four.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

Adjusted EBITDA, which excludes net loss on financial instrument at Far Valley through profit and loss for the 2025 was minus US419 million dollars with an EBITDA margin of minus 63% compared to minus 56% in Q1 twenty twenty five and minus 123% in Q2 twenty twenty four. The improvement from minus 123 in the same period last year reflects benefits from increased scale. Net loss for the quarter was minus US812 million dollars with a net loss margin of minus 122% compared to minus 109% in the 2025. Now turning to the CapEx and cash flow. CapEx for the quarter was of US212 million dollars an increase of 46% quarter over quarter and 102% year over year, driven by the incurred CapEx for the new plants.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

Operating cash flow for the quarter was minus US463 million dollars compared to the minus US314 million dollars in Q2 twenty twenty four and minus US602 million dollars in Q1 twenty twenty five. On a second show basis, the improvements in cash flow from operations was due to improvements in net working capital. In Q1 twenty twenty five, we recorded higher chances in inventories due to stocking up ahead of the Lunar New Year period in Asia. In terms of cash flow efficiency, our cash burn in Q2 twenty twenty five was equivalent to the 101% of revenue compared to 116% in the same period last year. Finally, an update on our liquidity and the previously announced grant and borrowings commitment in late twenty twenty four.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

As of the 06/30/2025, VinFast outstanding borrowings from VinGroup under this commitment was US1.2 billion dollars The company received a total of US1.1 billion dollars disbursement from our founder pursuant to the grant agreement. Our total liquidity as of June 30 is US4.2 million dollars which reflects cash and cash equivalents combined with the US1.6 million dollars expected cash proceeds from the recently announced completed R and D assets spin off transaction, the remainder of the fundraising commitment from Vien Group and our Founder and ELOC facility. Operator, let's open for Q and A.

[Operator]

Thank you.

[Operator]

We will now begin the question and answer session. We will now take our first question from the line of Andres Sheppard from Cantor Fitzgerald. Please go ahead,

[Andres Sheppard, MD & Senior Equity Analyst at Cantor Fitzgerald]

Hi, good morning, everyone, and good afternoon. Thank you so much for taking our questions. Madam, Tuohy, just curious if you can maybe give us a little more color on the cost discipline efforts that you're putting in place. I noticed that margin came a little bit below the previous quarters for this time. How should we think about that cost discipline for the second half of the year and into next year?

[Andres Sheppard, MD & Senior Equity Analyst at Cantor Fitzgerald]

Particularly, how should we think about gross margins and blended ASPs for the second half and into next year? Thank you.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Hi, Andrew. Nice talking to you again. Well, I think on the over the past few quarters, as you can see, we delivered meaningful non cost savings, so about like 16% reduction in Q4 twenty twenty four and another 11% in Q1 twenty twenty five. In Q2 twenty twenty five, the mix was more concentrated on models like the VF3, VF5 and VFe34 with the most optimization that has already been realized. So for the savings this quarter were more limited until we move on to the new platform.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

So looking ahead, we see a greater potential in upcoming versions of VF6 and VF7. This will be produced on our new vehicle platform as we talked about it before, which will benefit more from the optimized design and in house battery production and deeper collaboration with suppliers. So, yes, why the higher volume certainly give us more leverage on pricing, our cost efficiency don't just come from just scale. They've been driven by technology innovation, long term partnerships with suppliers and just other factors to improve on the bump cost as well. So depending on the mix, it could be different quarter from quarter.

[Andres Sheppard, MD & Senior Equity Analyst at Cantor Fitzgerald]

Got it. Okay. That's super helpful. Thank you so much. And just as maybe a quick follow-up.

[Andres Sheppard, MD & Senior Equity Analyst at Cantor Fitzgerald]

So you reaffirmed your outlook to more than double sales this year versus last year, which is great to see. Just curious if you can maybe help us understand where is the second half growth going to be coming from primarily? Is it continued penetration in Vietnam? Or is it India, Indonesia, Philippines? How should we think about that growth for the second half?

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

So we're very confident. We're on track to hit our 200,000 unit delivery target. Historically, the first half of the year makes up less than 30% of annual volume and as you recall last year, it was only I think like 22% of 2024 volume. This is largely because of seasonality in Vietnam where the consumers tend to hold back big ticket purchases earlier in the year. But even with that seasonality, our growth has been strong this year versus last year.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

And looking forward, we expect a significant ramp up in the second half supported by a few key drivers, like continue very robust demand in Vietnam, a stronger dealer and after sales network internationally and also the rollout of charging infrastructure, new model launches like VF6, VF7 as well as growing fleet, sales to like GSM and other transport operator. On top of that, will be expanding our green series with the model like Nemo Green, Minio Green and other EC Vans. And we are seeing quite a demand for this for the green series as well.

[Andres Sheppard, MD & Senior Equity Analyst at Cantor Fitzgerald]

Excellent. That's great. Thank you so much. Congrats on the quarter. We'll pass it on.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Thank you.

[Operator]

Thank you. There are no further questions from the phone lines at this time. I'll hand back to the room for questions on the webcast.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, operator. We have a question from the webcast. Could you elaborate on the next impact on the impact of next generation platforms on margin improvement and help quantify the contribution? Ms. Lan An will answer this question.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

Yes. In August, we delivered the first Lemo Greens, our new engine into the MTV segment with normal vehicle platform and EE two point zero architecture. The feedback so far has been positive. And due to the recency of the product launch, we are in a position to disclose the margin impact. However, the next generation EECO platform expected to drive meaningful cost saving like Madam T just mentioned.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

Moreover, it also drives a significant improvement in customer experience. The OTA update time is cut from hours to let down one hour, a bit more reliable remote updates via high speed Internet protocol linking key components. We are also working on the new vehicles in the pilot to hit the market in the coming months, such as like MinioGreens and EC Vans. Thank you.

[Amandae Baey, VP - IR at VinFast Auto]

We have the next online question. Please give more color on the impact on gross margins in Q2, specifically on the higher warranty provision rates and the increase in the cost of vehicles sold for which revenue has been deferred. Ms. Lana, would you like to take this question?

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

Yes. To recap, our gross margin was negative 41% in Q2 twenty twenty five compared to the negative 35% in Q1. However, if we exclude sales reduction related to the free driving program, the impact of NRV, the cost of vehicles sold for which revenue has been deferred and other provisions, gross margin was minus 20.9% in the Q2 twenty twenty five compared to the minus 19.3% in the Q1 twenty twenty five. The higher warranty provision during the period is typically, I mean, the early years of the first production generation, we expect this to go down and align with the industry benchmark as our product major. We recognize a cost of goods sold for small number of vehicles already delivered under customer contracts, while the revenue recognition will occur in the subsequent periods once contractual acceptance milestones are met.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

This accounting treatment reflect a timing difference rather than an economic loss. Thank you.

[Amandae Baey, VP - IR at VinFast Auto]

Hi, operator. Can we check if there are any questions on the line?

[Operator]

We currently have no further questions from the phone line.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

Thank you.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, operator. Our next question is regarding our EVAS business. Can you share your plans for the EVAS business? And should we expect the overseas EVAS business to be a meaningful driver for VinFast? Adanshu, will you take this please?

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Sure. So last quarter, we shared that we plan to expand VinFast eBus presence into Asia and Europe. I'm happy to announce that we also just hired a new person to have eBus business in North America. We have since received a lot of inbound interest from international partners, which reflects the attractiveness of our products. That said, our overseas ebus strategy is still in early stage and we haven't disclosed any specific targets yet.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

This year will be mostly on starting the business. But as an update, we will debut two e bus model for European market at the Bus World Brussels. So the press conference will be on 10/04/2025. Please help us spread the word out if you can. And I think we're starting with European market because it's particularly very promising for us as well.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

But looking ahead, we think that e bus business will evolve as part of our broader green mobility strategy. And we'd be happy to report more in the coming quarters.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Madam Tse. Our next question is regarding e scooters. What percentage did this segment contribute to first half twenty twenty five revenue and gross loss? How many units do you target to deliver in FY twenty twenty five? And what is the current production capacity and expansion plans for the e scooter business? Ms. Lana, would you like to take this question?

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

For the first half contribution, small percentage compared to total. We will disclose in its full financial statement on the Form six ks letter. For the guidance, while we do not provide the guidance for e scooter this year, we expect a substantial increase in delivery for the rest of the year. This is a continuation in the strong sales momentum year to date. This is also thanks to the favorable government policies further accelerate the EV adoption and being fast ongoing efforts to support this transition in the very early mover in the green mobility.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Ms. Lanan. The next question on the line, what is the expected timeline to launch the VS6 and VS7 in North America? Adam, will you like to take this?

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Well, we are in the middle of preparing our five year plan for North America. I think things are still moving. We do have the at least the BF7 for the plan. Can we would like to address this topic probably at the end of the year.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Madam Tse. And there's a follow on question about the e scooter business. So this quarter, two wheeler deliveries far exceeded EV growth. Does the company plan a structural shift in this business model? Or do you still expect four wheelers to dominate long term revenue?

[Amandae Baey, VP - IR at VinFast Auto]

Madam three or Ms. Lana, would you like to take this question?

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Sure. That's fine. Well, it's not really a structural shift per se because the average selling price for the e scooter is a lot lower the EVs. However, we did see a significant pickup in Vietnam for e scooter. This just reflects the market dynamics where in Vietnam or in Southeast Asia in general, the motorbikes are a lot the motorbikes sold each year a lot higher than vehicles.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

So in in Vietnam, in particular, it's about over 3,000,000 motorbikes sold annually versus about just 400,000 cars. And what is interesting is that sorry. The consumer in Vietnam are showing strong readiness to switch from gasoline motorbike to electric scooters. And also this there's a a certain shift in regulation as well that are driving this movement to greener transportation. So going forward, we still believe that the four wheelers will remain longer term revenue drivers.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

However, e scooter electric buses will be adding more to the revenues going forward.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Madam Tui. The next question is regarding the warranty margin track, which impacted Q2. And should we expect this to be a headwind in the back half of twenty twenty five? Lana, would you like to take the question?

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

Yes, sure. The Q2 margin impact was mainly an early stage effect that's very common with first product generations. With the ongoing design upgrade, more major manufacturing processes and stronger after sales support. Warranty cost, expect to trend down over time and normalize closer to the industry levels. So we don't see it like a sustained headwind in the 2025.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Langan. The next question on the line is regarding deliveries in the foreign markets. Of total deliveries in the foreign markets, what proportion was to related parties? Ms. Lana, would you take that question, please?

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

So for the related part two transactions that we did go for the global level, not just a specific for foreign market. So across the market of the 2025, the overall, the our B2C deliver actually, if we accounted for the four consecutive quarter through Q2 twenty twenty five, that accounted for the over 70 of the total delivery.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Ms. Lana. Our next question is regarding an update on our factories in India and Indonesia. Adam, please?

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Oh, okay. In Vietnam, as you probably saw from the news, we opened the factory in Haping at the June. And the factory has a capacity of up to 200,000 compact EVs and we're building models like the three, the EC band on a very flexible line. In India, in early August, we opened the factory in Tamil Nadu with initial capacity of 50,000 units per year and scalable 250,000 units per year. We are producing the VF6 and VF7 for India as well for export from the factory. In Indonesia, the construction at Subang factory is progressing well and we target to open by the end of the year as well.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Madam Tse. Our next question is regarding the green mobility ecosystem. How is that rollout progressing internationally?

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

I think in the previous quarter, we discussed our strategy taking the strategy from Vietnam where we're rolling out not just in fast vehicles, but the whole clean ecosystem and bringing it to other markets. So I'm happy to report that we started doing that in the markets closer to us. In Indonesia, GSM has already scaled quickly since our launch late last year. We have about 3,000 cars on the road today. The utilization rate is running at about 95%.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

And with our recent partnership with Bose, did that give us a broader reach to the customers. On the charging side, VGreen in Indonesia is targeting about 63,000 charging portal in the country by 2025. In The Philippines, GSM is the first fully foreign owned taxi operator. We offer fares as low as traditional taxi and about one third of other platforms at peak hours, while also giving drivers better income and benefits. So currently, in we have about 500 taxi in Metro Manila supported by two depots and about 100 charging stations either live or under development.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Big Green is working on the target to have about 15,000 charging points in The Philippines by the 2027. In India, it's still early for us, but Big Green already established the company there and is looking for partners. And GSM is also exploring to enter India in very, very soon.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Madam Phoebe. We have a few more questions from the line. How has the feedback been from consumers around the company's buyback program on returned vehicles? And how do you expect that to change in the medium term?

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Okay. I think the buyback program has helped build consumer confidence in EV adoption. But given the strong value proposition of our vehicles, we expect customer wouldn't have written reason to exercise it and its relevance will naturally diminish over time.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Madam Twee. Our next question is regarding our positioning in India. Why has VinFast initially launched the VS6 and VS7 in India while choosing VF5 and VFE34 for the Indonesia market? Please give more colors on the key differences for these two markets.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

I think we're announcing India in the next few days. I'm kind of holding that for for the announcement and not to to talk about it yet. But I think with Indonesia, it's quite from social economic standpoint, it's quite similar to Vietnam. So our approach is has been so far very similar to how we roll out in in Vietnam. So wait a few more days and there will be announcement exciting announcement about India.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Madam Twee. Our next question is regarding product lines, certain product lines which have already reached normalized gross margins. And how should we think about the BOM cost trends going forward? Will scaling volumes be sufficient to offset pressures from the higher end products?

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Renee?

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

Yes. On a normalized basis, excluding the NIV for reasons, exceptional items and noncash like depreciation and amortization, Our VF three and VF five models are already gross margin for VT. For high respect models like VF six and VF seven, we focus on improving margins through platform simplification, supplier resourcing and localization. As a volume scale, we expect to see the second show improvements.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

From the from your perspective, we anticipate a normalized gross margin turning positive at scale and localization fully take effect. We will continue update you on that progress each quarter. Thank you.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Ms. Lana. Our next question is actually regarding e scooters. VinFast has announced new measures to accelerate e scooter adoption, such as offering free charging and working with financing partners. How should we think about the financial impact of these initiatives?

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

For the our East Coast business, the the East Coast business is still loss making, and we expect that to continue in the near term as we route adoption support measures. For example, in in July, we signed a cooperation agreement with the 12 major banks in Hanoi. Under this program, buyers receive a 10% discount on a BINFAS e scooter. Pay just 10% upfront and and enjoy free charging at the Big Green public station until May 2027. For the profitability for e scooters remain a longer long term goal.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

Right now, the focus is on the making electric two wheelers more accessible and aligning within Vietnam's green mobility agenda. While we don't provide specific delivery guidance for e scooters, it is reasonable to expect volume to remain materially higher than our four gs business in the coming years.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Ms. Langan. Our next question is regarding the decision to reintroduce battery leasing in Indonesia. How does bringing back battery leasing impact the company's pricing in Indonesia? Adam, would you like to take this?

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Well, I think if you you've been following in past, you remember that at the beginning, we offer battery leasing in Vietnam for the first few years and we just place it out recently. Battery leasing allow us allow the consumer to adopt EV faster because the upfront payment is lower than the gasoline car as well as the monthly payment is less than the gasoline consumption for the vehicle and total cost of ownership will be lower. So when we first introduced, 95% of our customers chose this option. Gradually, when customer get more more familiar with EVs in in the market like Vietnam, for example, and more comfortable with EVs, then we face it out. So we're doing the same thing in Indonesia right now, and we and we believe that it's gonna have the similar impact like it did in in Vietnam.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

By offering battery leasing, we are building a broader customer base, accelerating EV adoption, and also strengthening our foothold in Indonesia, which is one of the Asia fastest growing EV markets.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Madam Thuy. On the note, the follow-up question on the line is regarding the competitive intensity in our core Asian markets and how long do we anticipate running promotional campaigns? And are these promotional campaigns in response to competition in the region?

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

Well, competition is good for consumers, right? So that that's what we we're facing in every market. But, like yeah. And competition is indeed very strong across Asia, and that is to be expected with how quickly EV adoption is accelerating. Promotions and just like reaction, they are deliberate strategy to build awareness and accelerate adoption, especially in early stages of entering a market.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

For example, we just introduced the battery leasing in Indonesia, as I mentioned before. We partner with the banks to offer 0% interest financing and one selective cash discount on $0 payment program for example. But that said, our differentiation goes beyond just pricing. We are investing heavily in building the full ecosystem, expanding the big green charging infrastructure with local partners and growing GSM ride hailing fleet. Over time, as we gain scale and the as our ecosystem matures, we expect promotions to normalize and the ownership experience with strong warranty, excellent after sales and good value will become the real driver for consumer confidence.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Madam Tse. And a follow-up question to that is regarding how international sales is tracking.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

In the 2025, international markets made up less than 10% of our total deliveries, which is similar to last year. The mix has shifted though. Today, Indonesia and The Philippines are the main contributors, whereas last year, it was U. S. And Canada.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

We are seeing encouraging progress. In The Philippines, Fintech's capture 25% share of the battery, the BEV segment in the first half. And in Indonesia, about 5% of our quarterly delivery came from there, from Indonesia, mostly led by VF3, which was recognized as the best EV city car. Sales in India are set to begin in Q3. So looking ahead, we are building scale across Asia with three key priorities.

[Le Thi Thu Thuy, Chairwoman at VinFast Auto]

First, we're rolling out the full green mobility ecosystem with GSM ride hailing and with vGreen charging network. Secondly, we're making EVs more accessible through expanded product offerings and strong financing partnerships. And finally, we're working closely with the government and partners, in The Philippines, India, everywhere to push the green transition in those countries.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Madam Twee. And our last question on the line is regarding what drove the higher cash balance this quarter and what is the outlook for cash burn through 2026 and 2027. Ms. Lanan, please?

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

Yes.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

Thank you. The high cash balance mainly reflects the financing inflows of the about US1.2 billion dollars which more than offset operating outflows of around US463 million dollars and investing outflows of around 305,000,000. This created a net uplift of roughly 500,000,000 US dollar. The key new term loan agreement with the Dutch Bank AG and SeaTown Holdings at the end of the 2025. For looking ahead, we expect operating outflows of US400 million to US600 million dollars per quarter in the near term.

[Nguyen Thi Lan Anh, CFO at VinFast Auto]

This is tied to having operations investment in the our overseas plans, R and D for the next generation models and in broader global operating costs. Over time, we expect that this to improve as operating leverage builds and margin strengthen. On liquidity, as I mentioned earlier, that as of the thirtieth June, our liquidity stood at the 4,200,000,000.0 US dollar, which includes cash and cash equivalents combined with the 1,600,000,000.0 US dollar that we expect that the cap is going to be like the cap proceeds from the recently announced completed R and D assets, spin off transaction, I mean the NovoTech and the remainder of the fundraising commitment from Bing Group, our founder and Elok facility. Also, we we are well supported by project financing from the our Indonesia and India plans, assisting bank loans. So together, this provide with ample runway to execute growth strategy through 2026 and 2027. Thank you.

[Amandae Baey, VP - IR at VinFast Auto]

Thank you, Ms. Langan. Operator, that concludes our Q2 earnings call. Thank you.

[Operator]

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect your lines.

Participants

Executives

• Amandae Baey, VP - IR
• Le Thi Thu Thuy, Chairwoman
• Nguyen Thi Lan Anh, CFO

Analysts

• Andres Sheppard, MD & Senior Equity Analyst at Cantor Fitzgerald