VinFast's Q4 2024: Unpacking Key Contradictions in Capital Spending, Market Strategy, and ASP Trends

Capital spending and expansion plans, market share and growth strategy, sales strategy and market focus, capital spending and operational efficiency, and ASP trends are the key contradictions discussed in VinFast's latest 2024Q4 earnings call.



Record Deliveries and Expansion:
- VinFast Auto Ltd. reported record deliveries in Q4 2024, setting a new monthly delivery record for every month in the quarter, with a total of 53,139 electric vehicles globally.
- The company exceeded its 2024 delivery target of 97,399 EVs, driven by a significant ramp-up in output and the introduction of new models like the VF 3 and VF 5 in Vietnam.

International Expansion and Market Share:
- VinFast achieved 10x growth in non-Vietnam sales year-over-year, with international sales contributing 10% of total deliveries.
- This expansion was driven by strong sales in Indonesia and the Philippines, where VinFast implemented its green mobility ecosystem, including EVs, share mobility services, and charging infrastructure.

Financial Performance and Cost Optimization:
- For Q4 2024, VinFast's revenue increased to $678 million, up 34% quarter-over-quarter and 70% year-over-year, while full-year revenue grew by 58% year-over-year.
- The gross margin excluding NRV and one-off accounting charges narrowed to minus 32% from minus 40% in 2023, reflecting cost efficiencies in production and manufacturing.

R&D and Cash Management:
- VinFast's R&D spend decreased by 35% year-over-year, primarily due to completed product development work, with Q4 2024 spending at $110 million, up by 28% quarter-over-quarter.
- Cash burn from operations improved by 39% year-over-year to $1.9 billion in 2024, reflecting disciplined cost management and capital deployment.