The company attributed the expanding losses primarily to impairment charges on inventory residual values, which surged to $104 million from $5 million in the previous quarter.
Vehicle deliveries grew 43 percent year-on-year to 13,172 units, falling short of the company's annual target. Notably, 51 percent of these deliveries were to GSM, a taxi company operated by VinFast's founder, Pham Nhat Vuong, suggesting reliance on affiliated sales to maintain delivery numbers.
In response to sluggish demand in the U.S. market, VinFast has shifted focus to Asian markets such as Indonesia and the Philippines. The company has also delayed the opening of its North Carolina plant from 2025 to 2028 and reduced its annual sales target from 100,000 to 80,000 units.
Le Thi Thu Thuy, VinFast's chairperson, expressed confidence in reaching the revised sales target, with a focus on the Vietnamese market for the remainder of the year. She emphasized the company's startup status, expecting losses for the next few quarters but anticipating profitability as production volumes increase and costs are optimized.
