(Reuters) -Vietnam’s VinFast reported a bigger third-quarter net loss on Friday as the electric vehicle maker spent heavily to expand its footprint and boost sales amid stiff competition.
Shares of the company were down over 5% in premarket trading.
The company signed two loan facilities during the period totaling $250 million, as it looks to ratchet up its ambitious growth strategy and expand internationally even amid tariff pressures and subdued demand in the United States.
Still, taking on additional debt could hammer the loss-making company’s margins at a time when it works aggressively to cut costs by shifting to a dealership-based model and optimizing its supply chain.
VinFast’s third-quarter loss widened to 24 trillion dong ($910.85 million) from 13.25 trillion dong a year ago.
Quarterly gross margin was negative 56.2%, compared with negative 24% last year, largely attributed to higher warranty provision rates and cost of vehicle sold, VinFast said.
Since its inception in 2017, VinFast has relied heavily on financial support from founder and the country’s richest person, Pham Nhat Vuong.
As per an agreement earlier this month, Vuong committed to provide up to 50 trillion dong in free grants to VinFast and its subsidiaries, the company said.
E-scooter and e-bike deliveries soared more than six-fold in the quarter after Hanoi announced plans to ban petrol-powered motorbikes in the city center starting in mid-2026.
The company’s total revenues for the quarter stood at 18.1 trillion dong, a rise of nearly 47% from the same period last year.
($1 = 26,349.0000 dong)
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Maju Samuel)
