Filed Pursuant to Rule 424(b)(3)
Registration No. 333-275133
Prospectus Supplement No. 3
(To Prospectus dated November 14, 2024)
VinFast Auto Ltd.
95,273,331 Ordinary Shares
This prospectus supplement amends and supplements the prospectus dated November 14, 2024 (the “Prospectus”), which forms a part of our Registration Statement on Form F-1 (Registration Statement No. 333-275133). The Prospectus relates to the offer and sale, from time to time, by YA II PN, Ltd., a Cayman Islands exempt limited partnership (“Yorkville”), of up to 95,273,331 ordinary shares in the capital of VinFast Auto Ltd., a public company incorporated under the laws of Singapore (Company Registration No: 201501874G) (“we,” “us,” the “Company” or “VinFast”), no par value (“ordinary shares”) that we may, at our discretion, elect to issue to Yorkville from time to time, pursuant to the Standby Equity Subscription Agreement, dated as of October 20, 2023, entered into by and between Yorkville and the Company.
This prospectus supplement is being filed to update and supplement the information included in the Prospectus with the information contained herein. This prospectus supplement is not complete without, and may not be delivered or utilized except in combination with, the Prospectus, including any amendments or supplements thereto. This prospectus supplement should be read in conjunction with the Prospectus and if there is any inconsistency between the information in the Prospectus and this prospectus supplement, you should rely on the information in this prospectus supplement.
Our ordinary shares and warrants are listed on the Nasdaq Stock Market LLC (“Nasdaq”) under the symbols, “VFS” and “VFSWW.” On November 25, 2024, the last reported sale price of our ordinary shares and warrants as reported on Nasdaq was $3.93 per ordinary share and $0.40 per warrant, respectively.
Investing in our securities involves a high degree of risk. See “Risk Factors” beginning on page 11 of the Prospectus for a discussion of information that should be considered in connection with an investment in our securities.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if the Prospectus or this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.
The date of this prospectus supplement is November 26, 2024
Part I – Unaudited Interim Condensed Consolidated Financial Statements
As of and for the three months and nine months ended September 30, 2024
VinFast Auto Ltd.
Unaudited Interim Condensed Consolidated Balance Sheets
| As of December 31, 2023 | As of September 30, 2024 | As of September 30, 2024 | ||||||||||
| VND million | VND million | USD | ||||||||||
| (Adjusted) (*) | (Unaudited) | (Unaudited) | ||||||||||
| ASSETS | ||||||||||||
| CURRENT ASSETS | ||||||||||||
| Cash and cash equivalents | 4,095,472 | 1,892,408 | 78,545,968 | |||||||||
| Restricted cash | 102,932 | 330,589 | 13,721,371 | |||||||||
| Trade receivables | 469,918 | 2,800,286 | 116,228,199 | |||||||||
| Advances to suppliers | 4,753,634 | 5,681,496 | 235,815,216 | |||||||||
| Inventories, net | 30,141,381 | 31,524,062 | 1,308,432,408 | |||||||||
| Short-term prepayments and other receivables | 8,006,103 | 9,571,564 | 397,275,723 | |||||||||
| Short-term derivative assets | 548,010 | 359,465 | 14,919,894 | |||||||||
| Current net investment in sales-type lease | 87,552 | 103,828 | 4,309,467 | |||||||||
| Short-term investments | 4,105 | 4,078 | 169,261 | |||||||||
| Short-term amounts due from related parties | 2,374,382 | 3,044,295 | 126,355,996 | |||||||||
| Assets classified as held for sale | - | 19,441 | 806,915 | |||||||||
| Total current assets | 50,583,489 | 55,331,512 | 2,296,580,418 | |||||||||
| NON-CURRENT ASSETS | ||||||||||||
| Trade receivables | 110,312 | 148,576 | 6,166,770 | |||||||||
| Property, plant and equipment, net | 79,122,703 | 79,971,399 | 3,319,279,417 | |||||||||
| Intangible assets, net | 1,346,324 | 1,170,472 | 48,581,414 | |||||||||
| Operating lease right-of-use assets | 7,081,509 | 5,966,780 | 247,656,166 | |||||||||
| Long-term derivative assets | 66,124 | - | - | |||||||||
| Long-term prepayments | 217,180 | 902,458 | 37,457,270 | |||||||||
| Non-current net investment in sales-type lease | 620,665 | 1,037,090 | 43,045,283 | |||||||||
| Investment in equity investees | 1,214,938 | 1,193,272 | 49,527,747 | |||||||||
| Other long-term investments | 918,040 | 918,040 | 38,104,014 | |||||||||
| Long-term amounts due from related parties | 51,073 | 37,208 | 1,544,349 | |||||||||
| Long-term restricted cash | 660,363 | 1,074,466 | 44,596,605 | |||||||||
| Other non-current assets | 4,865,001 | 4,055,941 | 168,345,204 | |||||||||
| Total non-current assets | 96,274,232 | 96,475,702 | 4,004,304,239 | |||||||||
| TOTAL ASSETS | 146,857,721 | 151,807,214 | 6,300,884,657 | |||||||||
| (*) | As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control. |
2
VinFast Auto Ltd.
Unaudited Interim Condensed Consolidated Balance Sheets (continued)
| As of December 31, 2023 | As of September 30, 2024 | As of September 30, 2024 | ||||||||||
| VND million | VND million | USD | ||||||||||
| (Adjusted) (*) | (Unaudited) | (Unaudited) | ||||||||||
| DEFICIT AND LIABILITIES | ||||||||||||
| CURRENT LIABILITIES | ||||||||||||
| Short-term and current portion of long-term interest-bearing loans and borrowings | 42,924,034 | 48,731,446 | 2,022,639,190 | |||||||||
| Short-term financial liabilities | 18,258,063 | 20,377,714 | 845,793,965 | |||||||||
| Convertible debenture | 1,190,475 | 260,854 | 10,826,962 | |||||||||
| Trade payables | 12,146,588 | 14,321,429 | 594,422,820 | |||||||||
| Deposits and down payment from customers | 1,194,112 | 2,206,915 | 91,599,842 | |||||||||
| Short-term deferred revenue | 149,747 | 146,304 | 6,072,469 | |||||||||
| Short-term accruals | 11,431,878 | 10,526,781 | 436,922,799 | |||||||||
| Other current liabilities | 13,875,625 | 5,437,774 | 225,699,332 | |||||||||
| Current operating lease liabilities | 1,524,356 | 1,382,636 | 57,387,457 | |||||||||
| Amounts due to related parties | 49,341,144 | 65,779,927 | 2,730,250,571 | |||||||||
| Total current liabilities | 152,036,022 | 169,171,780 | 7,021,615,407 | |||||||||
| NON-CURRENT LIABILITIES | ||||||||||||
| Long-term interest-bearing loans and borrowings | 30,170,149 | 21,249,203 | 881,965,841 | |||||||||
| Long-term financial liability | 137,057 | 33,686 | 1,398,165 | |||||||||
| Other non-current liabilities | 2,194,253 | 4,969,146 | 206,248,537 | |||||||||
| Non-current operating lease liabilities | 5,330,344 | 4,494,980 | 186,567,883 | |||||||||
| Long-term deferred revenue | 1,569,733 | 2,237,424 | 92,866,144 | |||||||||
| Deferred tax liabilities | 1,025,264 | 983,269 | 40,811,398 | |||||||||
| Long-term accruals | 123,867 | 123,877 | 5,141,618 | |||||||||
| Amounts due to related parties | 19,682,747 | 43,547,531 | 1,807,476,487 | |||||||||
| Total non-current liabilities | 60,233,414 | 77,639,116 | 3,222,476,073 | |||||||||
| Commitments and contingencies | ||||||||||||
| DEFICIT | ||||||||||||
| Ordinary shares, no par value - VinFast Auto Ltd (2,337,788,498 and 2,338,695,829 shares issued and outstanding as of December 31, 2023 and September 30, 2024) | 9,847,536 | 9,867,167 | 409,544,972 | |||||||||
| Accumulated losses | (190,502,556 | ) | (237,192,337 | ) | (9,844,865,189 | ) | ||||||
| Additional paid-in capital | 38,258,499 | 55,274,244 | 2,294,203,462 | |||||||||
| Other comprehensive loss | (385,873 | ) | (253,078 | ) | (10,504,213 | ) | ||||||
| Deficit attributable to equity holders of the parent | (142,782,394 | ) | (172,304,004 | ) | (7,151,620,968 | ) | ||||||
| Non-controlling interests | 77,370,679 | 77,300,322 | 3,208,414,145 | |||||||||
| Total deficit | (65,411,715 | ) | (95,003,682 | ) | (3,943,206,823 | ) | ||||||
| TOTAL DEFICIT AND LIABILITIES | 146,857,721 | 151,807,214 | 6,300,884,657 | |||||||||
| (*) | As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control. |
3
VinFast Auto Ltd.
Unaudited Interim Condensed Consolidated Statements of Operations
| For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||||||||||
| 2023 | 2024 | 2024 | 2023 | 2024 | 2024 | |||||||||||||||||||
| VND million | VND million | USD | VND million | VND million | USD | |||||||||||||||||||
| (Unaudited) (Adjusted) (*) | (Unaudited) | (Unaudited) | (Unaudited) (Adjusted) (*) | (Unaudited) | (Unaudited) | |||||||||||||||||||
| Revenues | ||||||||||||||||||||||||
| Sales of vehicles | 7,698,425 | 11,251,190 | 466,989,997 | 16,711,887 | 24,704,105 | 1,025,364,421 | ||||||||||||||||||
| Sales of merchandise | 14,656 | 23,717 | 984,394 | 52,925 | 83,705 | 3,474,246 | ||||||||||||||||||
| Sales of spare parts and components | 215,420 | 429,505 | 17,826,962 | 587,758 | 1,071,442 | 44,471,091 | ||||||||||||||||||
| Rendering of services | 127,059 | 176,121 | 7,310,049 | 300,046 | 785,144 | 32,588,055 | ||||||||||||||||||
| Rental income | ||||||||||||||||||||||||
| Revenue from leasing activities | 199,570 | 446,004 | 18,511,766 | 515,640 | 878,243 | 36,452,207 | ||||||||||||||||||
| Revenues | 8,255,130 | 12,326,537 | 511,623,168 | 18,168,256 | 27,522,639 | 1,142,350,020 | ||||||||||||||||||
| Cost of vehicles sold | (9,802,999 | ) | (14,331,580 | ) | (594,844,146 | ) | (25,462,167 | ) | (36,988,994 | ) | (1,535,258,955 | ) | ||||||||||||
| Cost of merchandise sold | (14,831 | ) | (48,831 | ) | (2,026,771 | ) | (53,364 | ) | (105,369 | ) | (4,373,428 | ) | ||||||||||||
| Cost of spare parts and components sold | (134,965 | ) | (159,808 | ) | (6,632,964 | ) | (365,791 | ) | (541,083 | ) | (22,458,100 | ) | ||||||||||||
| Cost of rendering services | (294,448 | ) | (396,707 | ) | (16,465,654 | ) | (683,044 | ) | (1,398,377 | ) | (58,040,800 | ) | ||||||||||||
| Cost of leasing activities | (233,743 | ) | (347,497 | ) | (14,423,152 | ) | (584,174 | ) | (712,060 | ) | (29,554,643 | ) | ||||||||||||
| Cost of sales | (10,480,986 | ) | (15,284,423 | ) | (634,392,687 | ) | (27,148,540 | ) | (39,745,883 | ) | (1,649,685,926 | ) | ||||||||||||
| Gross loss | (2,225,856 | ) | (2,957,886 | ) | (122,769,519 | ) | (8,980,284 | ) | (12,223,244 | ) | (507,335,906 | ) | ||||||||||||
| Operating expenses | ||||||||||||||||||||||||
| Research and development costs | (3,594,921 | ) | (2,091,725 | ) | (86,818,786 | ) | (12,247,235 | ) | (7,346,959 | ) | (304,941,643 | ) | ||||||||||||
| Selling and distribution costs | (1,461,999 | ) | (2,050,062 | ) | (85,089,528 | ) | (4,031,763 | ) | (5,286,246 | ) | (219,410,036 | ) | ||||||||||||
| Administrative expenses | (1,358,349 | ) | (1,411,148 | ) | (58,570,871 | ) | (4,095,209 | ) | (5,068,940 | ) | (210,390,570 | ) | ||||||||||||
| Net other operating (expenses)/incomes | (542,307 | ) | 389,450 | 16,164,446 | (625,362 | ) | (1,621,658 | ) | (67,308,264 | ) | ||||||||||||||
| Operating loss | (9,183,432 | ) | (8,121,371 | ) | (337,084,258 | ) | (29,979,853 | ) | (31,547,047 | ) | (1,309,386,419 | ) | ||||||||||||
| Finance income | 51,392 | 75,208 | 3,121,571 | 405,307 | 303,228 | 12,585,730 | ||||||||||||||||||
| Finance costs | (3,857,994 | ) | (4,991,829 | ) | (207,190,014 | ) | (9,961,257 | ) | (13,671,144 | ) | (567,432,200 | ) | ||||||||||||
| Net loss on financial instruments at fair value through profit or loss | (2,561,432 | ) | (251,088 | ) | (10,421,616 | ) | (3,840,505 | ) | (1,813,037 | ) | (75,251,608 | ) | ||||||||||||
| Share of gains/(losses) from equity investees | 18,749 | 10,236 | 424,854 | 29,671 | (21,666 | ) | (899,265 | ) | ||||||||||||||||
| Loss before income tax expense | (15,532,717 | ) | (13,278,844 | ) | (551,149,463 | ) | (43,346,637 | ) | (46,749,666 | ) | (1,940,383,762 | ) | ||||||||||||
| Tax income/(expense) | (13,015 | ) | 26,900 | 1,116,507 | 27,523 | (10,472 | ) | (434,650 | ) | |||||||||||||||
| Net loss for the period | (15,545,732 | ) | (13,251,944 | ) | (550,032,956 | ) | (43,319,114 | ) | (46,760,138 | ) | (1,940,818,412 | ) | ||||||||||||
| Net loss attributable to non-controlling interests | (19,097 | ) | (24,671 | ) | (1,023,990 | ) | (70,319 | ) | (70,357 | ) | (2,920,226 | ) | ||||||||||||
| Net loss attributable to controlling interest | (15,526,635 | ) | (13,227,273 | ) | (549,008,966 | ) | (43,248,795 | ) | (46,689,781 | ) | (1,937,898,186 | ) | ||||||||||||
| (*) | As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control. |
VinFast Auto Ltd.
Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss
| For the three months ended September 30, | For the nine months ended September 30, | |||||||||||||||||||||||
| 2023 | 2024 | 2024 | 2023 | 2024 | 2024 | |||||||||||||||||||
| VND million | VND million | USD | VND million | VND million | USD | |||||||||||||||||||
| (Unaudited) (Adjusted) (*) | (Unaudited) | (Unaudited) | (Unaudited) (Adjusted) (*) | (Unaudited) | (Unaudited) | |||||||||||||||||||
| Net loss for the period | (15,545,732 | ) | (13,251,944 | ) | (550,032,956 | ) | (43,319,114 | ) | (46,760,138 | ) | (1,940,818,412 | ) | ||||||||||||
| Other comprehensive (loss)/income | ||||||||||||||||||||||||
| Other comprehensive (loss)/income that will be reclassified to profit or loss in subsequent periods (net of tax): | ||||||||||||||||||||||||
| Exchange differences on translation of foreign operations | 56 | 211,138 | 8,763,458 | 2,665 | 132,795 | 5,511,767 | ||||||||||||||||||
| Net other comprehensive (loss)/income that will be reclassified to profit or loss in subsequent periods | 56 | 211,138 | 8,763,458 | 2,665 | 132,795 | 5,511,767 | ||||||||||||||||||
| Total comprehensive loss for the period, net of tax | (15,545,676 | ) | (13,040,806 | ) | (541,269,498 | ) | (43,316,449 | ) | (46,627,343 | ) | (1,935,306,645 | ) | ||||||||||||
| Net loss attributable to non-controlling interests | (19,097 | ) | (24,671 | ) | (1,023,990 | ) | (70,319 | ) | (70,357 | ) | (2,920,226 | ) | ||||||||||||
| Comprehensive loss attributable to controlling interest | (15,526,579 | ) | (13,016,135 | ) | (540,245,508 | ) | (43,246,130 | ) | (46,556,986 | ) | (1,932,386,419 | ) | ||||||||||||
| Net loss per share attributable to ordinary shareholders | VND | VND | USD | VND | VND | USD | ||||||||||||||||||
| Basic and diluted | (6,725 | ) | (5,656 | ) | (0.23 | ) | (18,779 | ) | (19,968 | ) | (0.83 | ) | ||||||||||||
| Unit: Shares | ||||||||||||||||||||||||
| Weighted average number of shares used in loss per share computation | ||||||||||||||||||||||||
| Basic and diluted | 2,308,837,804 | 2,338,695,829 | 2,338,695,829 | 2,303,020,921 | 2,338,281,841 | 2,338,281,841 | ||||||||||||||||||
| (*) | As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control. |
VinFast Auto Ltd.
Unaudited Interim Condensed Consolidated Statements of Cash Flows
| For the nine months ended September 30, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| VND million | VND million | USD | ||||||||||
| (Unaudited) (Adjusted) (*) | (Unaudited) | (Unaudited) | ||||||||||
| OPERATING ACTIVITIES | ||||||||||||
| Net loss for the period | (43,319,114 | ) | (46,760,138 | ) | (1,940,818,412 | ) | ||||||
| Adjustments: | ||||||||||||
| Depreciation of property, plant and equipment | 4,641,698 | 7,003,706 | 290,694,642 | |||||||||
| Amortization of intangible assets | 182,020 | 281,132 | 11,668,617 | |||||||||
| Impairment of assets and changes in fair value of held for sale assets | 1,112,176 | 1,661,290 | 68,953,223 | |||||||||
| Changes in operating lease right-of-use assets | 823,044 | 1,337,659 | 55,520,649 | |||||||||
| Provision related to compensation expenses, assurance-type warranties and net realizable value of inventories | 4,572,774 | 7,739,874 | 321,249,907 | |||||||||
| Deferred tax income | (27,523 | ) | (41,995 | ) | (1,743,037 | ) | ||||||
| Unrealized foreign exchange losses | 561,937 | 195,785 | 8,126,219 | |||||||||
| Net losses on financial instruments at fair value through profit or loss | 3,840,505 | 1,813,037 | 75,251,608 | |||||||||
| Change in amortized costs of financial instruments measured at amortized cost other than nominal interest | 2,350,639 | 2,163,146 | 89,783,174 | |||||||||
| Losses on disposal and write-off of fixed assets | - | 195,905 | 8,131,200 | |||||||||
| Share of (gains)/losses from equity investees | (29,671 | ) | 21,666 | 899,265 | ||||||||
| Share-based compensation expenses | - | 70,899 | 2,942,722 | |||||||||
| Change in working capital: | ||||||||||||
| Trade receivables and advance to suppliers, net investment in sales-type lease | (1,055,332 | ) | (3,400,254 | ) | (141,130,370 | ) | ||||||
| Inventories | (6,058,517 | ) | (6,335,334 | ) | (262,953,306 | ) | ||||||
| Trade payables, deferred revenue and other payables | (4,759,867 | ) | 4,798,611 | 199,170,340 | ||||||||
| Operating lease liabilities | (590,129 | ) | (1,214,021 | ) | (50,388,951 | ) | ||||||
| Prepayments, other receivables and other assets | (514,556 | ) | (1,012,555 | ) | (42,026,937 | ) | ||||||
| Net cash flows used in operating activities | (38,269,916 | ) | (31,481,587 | ) | (1,306,669,447 | ) | ||||||
| (*) | As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control. |
VinFast Auto Ltd.
Unaudited Interim Condensed Consolidated Statements of Cash Flows (continued)
| For the nine months ended September 30, | ||||||||||||
| 2023 | 2024 | 2024 | ||||||||||
| VND million | VND million | USD | ||||||||||
| (Unaudited) (Adjusted) (*) | (Unaudited) | (Unaudited) | ||||||||||
| INVESTING ACTIVITIES | ||||||||||||
| Purchase of property, plant and equipment, and intangible assets | (19,346,390 | ) | (10,577,759 | ) | (439,038,683 | ) | ||||||
| Proceeds from disposal of property, plant and equipment | - | 36,490 | 1,514,548 | |||||||||
| Disbursement of bank deposit and loans | (11,513,514 | ) | (2,338,057 | ) | (97,043,000 | ) | ||||||
| Collection of loans | 11,157,900 | 2,320,000 | 96,293,529 | |||||||||
| Payment for acquisition of a subsidiary (net of cash held by entity being acquired) | (6,900 | ) | (10,252 | ) | (425,518 | ) | ||||||
| Net proceeds from the disposal of a subsidiary | - | (20,000 | ) | (830,116 | ) | |||||||
| Payment for investments in equity investees | (1,039,033 | ) | - | - | ||||||||
| Receipt from government grants | - | 1,093,933 | 45,404,599 | |||||||||
| Net cash flows used in investing activities | (20,747,937 | ) | (9,495,645 | ) | (394,124,641 | ) | ||||||
| FINANCING ACTIVITIES | ||||||||||||
| Capital contribution from owners/issuance of ordinary shares | 3,994,291 | - | - | |||||||||
| Additional amount paid up to convert warrants to capital | 1,421,444 | - | - | |||||||||
| Deemed contribution from owners | 9,627,000 | 16,994,658 | 705,377,413 | |||||||||
| Proceeds from borrowings | 99,668,587 | 69,300,057 | 2,876,356,494 | |||||||||
| Cash received under a business cooperation contract | 9,625,000 | - | - | |||||||||
| Cash payment under a business cooperation contract | - | (9,625,000 | ) | (399,493,629 | ) | |||||||
| Repayment of borrowings | (65,853,147 | ) | (37,386,583 | ) | (1,551,761,217 | ) | ||||||
| Net cash flows from financing activities | 58,483,175 | 39,283,132 | 1,630,479,061 | |||||||||
| Net decrease in cash and cash equivalents and restricted cash | (534,678 | ) | (1,694,100 | ) | (70,315,027 | ) | ||||||
| Cash, cash equivalents and restricted cash at beginning of the period | 4,361,631 | 4,858,767 | 201,667,165 | |||||||||
| Net foreign exchange differences | 20,656 | 132,796 | 5,511,806 | |||||||||
| Cash, cash equivalents and restricted cash at end of the period | 3,847,609 | 3,297,463 | 136,863,944 | |||||||||
| Supplement disclosures of non-cash activities | ||||||||||||
| Debt conversion to equity | (2,619,400 | ) | - | - | ||||||||
| Non-cash property, plant and equipment additions | 9,650,032 | 9,282,789 | 385,289,877 | |||||||||
| Establishment of right-of-use assets and lease liabilities at commencement dates | 2,942,877 | 222,930 | 9,252,895 | |||||||||
| (*) | As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control. |
Part II – Third Quarter 2024 Financial Results and Business Update
Financial Results for the Third Quarter of 2024
Revenues
| · | Total revenues were VND12,326,537 million in the third quarter of 2024, representing an increase of 49.3% from the third quarter of 2023 and an increase of 42.2% from the second quarter of 2024. Total revenues are primarily comprised of revenue from EV sales. |
| · | Vehicle sales were VND11,251,190 million in the third quarter of 2024, representing an increase of 46.1% from the third quarter of 2023 and an increase of 46.1% from the second quarter of 2024. Revenue growth from the third quarter of 2024 and the second quarter of 2024 was driven by an increase in EVs sale volumes due to the Company’s expansion in both domestic and overseas markets. |
Cost of Sales and Gross Margin
| · | Cost of sales was VND15,284,423 million in the third quarter of 2024, representing an increase of 45.8% from the third quarter of 2023 and an increase of 8.3% from the second quarter of 2024. The increase over the third quarter of 2023 and the second quarter of 2024 was primarily attributable to an increase in the cost of vehicles sold as the Company delivered more EVs to customers in the third quarter of 2024. |
| · | Gross loss was VND2,957,886 million in the third quarter of 2024, representing an increase of 32.9% from the third quarter of 2023 and a decrease of 45.6% from the second quarter of 2024. |
| · | Gross margin was negative (24.0%) in the third quarter of 2024, compared to negative (27.0%) in the third quarter of 2023 and negative (62.7%) in the second quarter of 2024. The improvement of gross margin over the third quarter of 2023 was primarily driven by increased sales and improved costs. The improvement of gross margin over the second quarter of 2024 was primarily driven by increased sales, improved costs and decrease in charges to write down the carrying value of inventories. |
Operating Expenses
| · | Research and development (R&D) costs were VND2,091,725 million in the third quarter of 2024, representing a decrease of 41.8% from the third quarter of 2023 and a decrease of 21.4% from the second quarter of 2024. The decrease over the third quarter of 2023 and the second quarter of 2024 was primarily the result of the Company having frontloaded the work on product development. |
| · | Selling, general and administrative expenses were VND3,461,210 million in the third quarter of 2024, representing an increase of 22.7% from the third quarter of 2023 and a decrease of 9.8% from the second quarter of 2024. The increase over the third quarter of 2023 was primarily due to the increase in labor costs, rental costs and marketing expenses which are primarily attributable to the Company’s efforts to scale its sales operations. The decrease over the second quarter of 2024 was primarily due to the impairment of assets that do not support BOM cost optimization recognized in the second quarter of 2024. |
| · | Net other operating incomes were VND 389,450 million in the third quarter of 2024, representing an increase of 171.8% and 126.7% from net other operating expenses in the third quarter of 2023 and the second quarter of 2024, respectively. The increase in net income over the third quarter of 2023 and the second quarter of 2024 was mainly due to an increase in foreign exchange gain. |
Loss from Operations
| · | Loss from operations was VND8,121,371 million in the third quarter of 2024 representing a decrease of 11.6% from the third quarter of 2023 and a decrease of 39.4% from the second quarter of 2024, as a result of the foregoing. |
Net Loss and Net Loss Per Share
| · | Net loss on financial instruments at fair value through profit or loss was VND251,088 million in the third quarter of 2024, representing a decrease of 90.2% from net loss of the third quarter of 2023 and a decrease of 73.6% from net loss of the second quarter of 2024. The decrease over net loss of the third quarter of 2023 and the second quarter of 2024 was mainly attributable to changes in the fair value of currency interest rate swaps contracts, financial liabilities in respect of dividend preference shares, convertible debenture and warrants. |
| · | Net loss was VND13,251,944 million in the third quarter of 2024, representing a decrease of 14.8% from the third quarter of 2023 and a decrease of 29.4% from the second quarter of 2024. |
| · | Net loss attributable to controlling interest was VND13,227,273 million in the third quarter of 2024, representing a decrease of 14.8% from the third quarter of 2023 and a decrease of 29.4% from the second quarter of 2024. |
| · | Basic and diluted net loss per ordinary share were both VND5,656 in the third quarter of 2024, compared with VND6,725 in the third quarter of 2023 and VND8,015 in the second quarter of 2024. |
Balance Sheet
| · | Cash and cash equivalents were VND1,892,408 million as of September 30, 2024. |
Third Quarter of 2024 Business Updates
| 3Q2024 | 2Q2024 | 3Q2023 | |
| EV Deliveries(1) | 21,912 | 13,172 | 10,179 |
| E-scooter Deliveries | 18,894 | 13,076 | 28,219 |
| · | EV deliveries were 21,912 in the third quarter of 2024, representing an increase of 66% from the second quarter of 2024 and an increase of 115% from the third quarter of 2023. |
| · | E-scooter deliveries were 18,894 in the third quarter of 2024, representing an increase of 44% from the second quarter of 2024 and a decrease of 33% from the third quarter of 2023. |
| · | As of October 31, 2024, the Company had 173 showrooms globally for EVs and 160 showrooms and service workshops for e-scooters, including VinFast’s showrooms and dealer showrooms. |
Became top-selling automotive brand in Vietnam2
| · | In September, VinFast recorded robust monthly deliveries in its home market of Vietnam, firmly positioning VinFast as the top-selling car brand in Vietnam for September. This marked the first time since VinFast was established seven years ago that a Vietnamese EV brand outperformed all international competitors to become the market leader in terms of monthly sales. |
| · | In October, VinFast delivered more than 11,000 EVs to customers in Vietnam, representing a 21% increase compared to September and bringing total deliveries in Vietnam to more than 51,000 EVs for the year up to October 31, 2024. This positioned VinFast as the best-selling automotive brand in the Vietnamese market for October and the first ten months of 2024. |
Internal reorganization of the group companies under VinFast Trading and Production JSC (“VFTP”)
| · | Under the reorganization plan announced earlier this month, a new Vietnam-incorporated company, VinFast Investment and Development Joint Stock Company (“VFDI”) will be spun off from VFTP as a new direct subsidiary of the Company. VFDI will hold certain of the VinFast group’s international subsidiaries, namely a 99.3% interest in Vingroup Investment Vietnam JSC, which in turn will wholly own VinFast’s subsidiaries in France, Canada, the Netherlands, Australia and Germany. |
| · | VFTP will continue to be a direct subsidiary of the Company and will hold the Company’s EV manufacturing business in Vietnam. In addition, VFTP will hold a 99.5% ownership interest in VinFast Commercial and Services Trading Limited Liability Company, as well as 99.8% interest in VinEG Green Energy Solutions JSC. |
| · | The reorganization is an internal exercise, and the Company will maintain its majority ownership of all of its current subsidiaries. Completion of this internal reorganization is subject to obtaining the necessary regulatory approvals. |
Shareholder funding
| · | VinFast’s Founder and Chief Executive Officer, Mr. Pham Nhat Vuong, and his associated companies intend to provide up to VND50 trillion in free grants to the Company and its subsidiaries through the end of 2026. |
| · | In addition, Vingroup Joint Stock Company intends for it and its subsidiaries (collectively “Vingroup”) to provide our subsidiaries incorporated in Vietnam with up to VND35 trillion in loans through the end of 2026. |
Recapitalization of VFTP
| · | Vingroup will make additional capital contributions to VFTP by converting up to VND80 trillion of loans extended by Vingroup to VFTP into preference shares issued by VFTP. |
New EV manufacturing facility in Ha Tinh, Vietnam
| · | In response to increasing demand for affordable EVs and to improve production efficiencies, the Company plans to add a new completely knocked down (CKD) factory in Ha Tinh, Vietnam focusing on VF 3 and VF 5. The factory will be under a long-term lease structure to optimize initial spendings. The factory targets a maximum capacity of 300,000 EVs per year, subject to demand and general market conditions, with a gradual ramp up in capacity and production overtime. The construction of the factory will begin in early December, and the factory is expected to commence operations in 2025. |
1 Includes VF 3, VF e34, VF 5, VF 6, VF 7, VF 8, VF 9 and e-bus.
2 Based on data from the Vietnam Automobile Manufacturers’ Association, Thanh Cong Group and Company internal data (for VinFast only).
Progress on market expansion
| · | North America: In November, VinFast started delivering the VF 9 to customers in the U.S. and Canada. |
| · | Indonesia: In the third quarter, VinFast delivered its first VF e34s with right-hand drive configuration to customers in Indonesia. The Company’s planned assembly plant in Indonesia is targeted to commence operations in 2025, with an initial capacity of 50,000 EVs per year. In the fourth quarter, the Company delivered its first batch of VF 5 EVs to the market. As of October 31, 2024, VinFast had 17 dealer stores in 15 cities in Indonesia. |
| · | The Philippines: In September, VinFast opened sales of the VF 3 with a starting list price of 645,000 Pesos (battery-exclusive). During the 12th Philippines Electric Vehicle Summit (PEVS) in October, VinFast opened sales of the VF 7 with a starting list price of 1,470,000 Pesos (battery-exclusive). The Company delivered its first batch of VF 5 EVs in the third quarter of 2024 and is currently accepting reservations for three models in the market: the VF 3, VF 5 and VF 7. As of October 31, 2024, VinFast had eight dealer stores in six cities in the Philippines. |
| · | India: VinFast’s planned assembly plant with an initial capacity of 50,000 EVs per year is preparing for equipment and machinery installation process and is on track to commence operations in 2025. |
| · | Middle East: In October, VinFast held its official brand launch event in the Middle East market and opened its second dealer store in the market, located in downtown Dubai, United Arab Emirates. |
Related Party Transactions
| · | Out of 21,912 EVs delivered in the third quarter of 2024, 22% were to related parties of the Company. |
| · | Out of 18,894 e-scooters delivered in the third quarter of 2024, 5% were to related parties of the Company. |
Strategy and Capital Requirements
Our primary target markets remain Vietnam, North America and Europe, and we are regularly evaluating opportunities to enter new countries and regions in Europe, Asia, the Middle East and Africa to grow our global footprint in areas where we identify high potential for EV demand growth. We may establish or enlarge our presence in existing and new markets through a range of distribution models, directly or with strategic public and private partners or agents. To ensure that we continue to have sufficient production capacity to support our current and future operations, we will from time-to-time endeavor to add manufacturing, assembly and distribution capacity across our markets through the expansion of existing infrastructure and new brownfield and greenfield projects. While we remain focused on the mini- through E-segments of the electric SUV market, we are also evaluating the full spectrum of vehicle types for future product development. We continuously monitor our global expansion strategy and have the ability to accelerate, moderate or otherwise deviate from our existing distribution, manufacturing, assembly, marketing and other plans for any market at any time.
Our funding sources for our capital requirements to implement our growth strategy may include loans and grants from our major shareholders and affiliates, the public and private debt and equity capital markets, existing and new third-party loans and borrowing and cash from operations. We are prepared to opportunistically access the debt and equity capital markets, subject to market conditions. We also seek to capture available tax and other incentives and subsidies to reduce our costs of investment and operations.