Vietnamese electric vehicle manufacturer VinFast (NASDAQ:VFS) announced on Thursday that its third-quarter revenue more than doubled, with a significant portion of its sales directed towards an affiliate company owned by its founder.
In a call with analysts, company executives disclosed that approximately 60% of VinFast’s deliveries, translating to over 6,000 vehicles, were supplied to Green SM (GSM), a Vietnam-based taxi operator and leasing provider. GSM is 95% owned by VinFast’s founder, Pham Nhat Vuong. Notably, this breakdown had not been previously shared in the company’s published earnings.
Over the past two quarters, GSM has consistently accounted for about two-thirds of VinFast’s sales. VinFast reported a robust $343 million in revenue for the three months ending on September 30, marking a remarkable 159% increase compared to the previous year. However, the company also recorded a widened net loss, which increased by 33.7% to reach $623 million.
VinFast has set an ambitious goal of achieving profitability within two years while operating its factory in Haiphong, Vietnam, at full capacity. The facility has the capability to produce 250,000 electric vehicles (EVs) annually but has yet to reach this level of production.
GSM made headlines earlier this year when it launched Vietnam’s first all-electric taxi service, starting with a fleet of 600 VinFast EVs. The company also operates a ride-sharing service using VinFast electric scooters.
VinFast’s CEO, Le Thi Thu Thuy, revealed plans to expand the partnership with GSM to include Indonesia and India. These markets will involve setting up smaller-scale assembly plants that will assemble vehicles from parts shipped from Vietnam.
Executives also mentioned that VinFast anticipated opening its first U.S. franchise dealership by the end of the year and was evaluating proposals from 27 dealers to sell its vehicles, including the VF 9, a second model expected to launch this year.
VinFast, established in 2017 and commencing EV production in 2021, intends to establish kit assembly plants in India and Indonesia to leverage EV incentives in these markets. This move comes as EV prices have been under pressure, driven by price reductions from market leader Tesla and various Chinese companies.
Backed by Vingroup, Vietnam’s largest conglomerate, VinFast went public on the Nasdaq in August following a merger with a blank-check company. The company’s shares were up 4.5% at $8.4 each at the time of reporting. VinFast also expects to receive approximately $1.2 billion in grants from its parent company, founder Pham Nhat Vuong, and two key shareholders over the next six months.
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Author Faith Yakubu 
