Elaborate on drivers behind narrowing gross profit loss and their sustainability, and share achievements in export markets.

Gross profit improvement is driven by BOM optimization, production scale, supplier pricing, localization, and engineering optimization, which are sustainable. VF-6 and VF-7 saw 13% and 23% BOM cost reductions, respectively, with 20-30% expected for 2026 models. International deliveries accounted for 17% of total in Q4 2025, with strong ramp-up in Indonesia, Philippines, and India. “The largest reduction in BOM cost, VF6, around 13% and VF-7 around 23% in BOM cost reduction. In 2026, we expect further improvements across multiple models with -- around 20% up to -- I think maybe the 30% cost reduction, supported by our transition to next-generation vehicle platforms in the following years.”

Why proceed with a U.S. manufacturing presence given slower EV demand, and provide color on the impairment charge.

The U.S. remains an important strategic market, and a U.S. manufacturing base provides flexibility. Construction is expected to resume in 2026 with SOP targeted for 2028. The $236 million impairment in Q4 2025 was a one-off charge reflecting revised project timing and is expected to be reversed in the future, with no change to long-term commitment. “For -- out of prudence, we recorded a $236 million impairment in Q4 2025. This was a one-off charge reflecting the revised project timing. However, we expect that we will reverse this impairment in the future as the factory construction will start again.”

How much cost reduction will come from simplifying hardware vs. tailoring features for different markets in ADAS?

The next-gen ADAS stack, launching with VF-6 and VF-7 refreshes from H2 2026, will achieve cost reduction through both simplifying the hardware stack (more integrated computing) and tailoring features to different markets. Increased in-house development will reduce reliance on third parties and enable market-specific features. “So the new architecture basically will use more integrated computing and simplified hardware stack. And at the same time, we're also increasing the component of in-house development in order to reduce reliance on third parties and being able to tailor the features to different markets.”

VFS

VinFast (VFS) Q4 FY25 earnings call: guidance and Q&A

Earnings call· Dec 2025 (Q4 FY25)· Consumer Discretionary· Mar 16, 2026

Source: earnings call transcript

Executive summary

VinFast Q4 FY25 — Record Deliveries and Strategic Global Expansion

VinFast achieved record EV and 2-wheeler deliveries in Q4 FY25, driving significant revenue growth and gross margin improvement, primarily due to increased scale and cost optimization. The company is strategically expanding its global manufacturing footprint and product portfolio, including next-gen and range extender EVs, while focusing on software-defined vehicles and AI integration to drive future profitability. Despite a one-time impairment charge for its US factory, VinFast remains committed to its long-term growth and market expansion plans.

Highlights

Delivered 86,557 EVs in Q4 FY25, a new quarterly record for the company.
Full-year 2025 EV deliveries reached 196,919, exceeding guidance to at least double 2024 deliveries.
Full-year 2025 2-wheeler deliveries grew 5.7x to 406,496 units.
Q4 FY25 revenue was $1.6 billion, up 118% QoQ and 139% YoY.
Gross margin improved to negative 40% in Q4 FY25 from negative 79% in Q4 FY24.

Concerns

Adjusted EBITDA for Q4 FY25 was negative $1 billion, a 20% decline YoY.
Net loss for Q4 FY25 was negative $1.4 billion.
EPS for Q4 FY25 was negative $0.6, a decline of 15% YoY.
Recorded a $236 million impairment charge for the North Carolina factory in Q4 FY25.
R&D expenses increased 7% QoQ and 7% YoY to $114 million.

Guidance & targets

Category	Target	Timeline	Confidence
EV deliveries	at least 300,000 EVs high materiality	FY26	High
2-wheeler deliveries	at least 2.5x last year volume medium materiality	FY26	High
North Carolina factory SOP	2028 medium materiality	FY28	Medium
VF-8 REEV launch	starting 2027 low materiality	FY27	Medium
Next-gen VF-6 and VF-7 SOP	second half 2026 medium materiality	H2 FY26	High
CapEx	around $1.6 billion high materiality	FY26	High
VF-7 launch in U.S.	before the end of the year medium materiality	FY26	High
Humanoid robot trials	second half of 2026 low materiality	H2 FY26	Medium

Segment performance

Segment	Revenue	YoY	QoQ	Margin
International Markets International markets showed strong ramp-up in deliveries, particularly in Indonesia, the Philippines, and India, contributing significantly to overall deliveries. The company has achieved notable market rankings in these regions. Q4 FY25 Deliveries: 18% of totalFY25 Deliveries: 11% of totalIndia BEV ranking (December): #4Indonesia BEV ranking (FY25): #3Philippines BEV ranking (FY25): #2	—	—	—	—
Vietnam VinFast maintained its #1 OEM position in Vietnam, significantly increasing market share. VF-3 and VF-5 models were key contributors to domestic volumes, and the company also leads the electric scooter market. FY25 Market Share: 36%FY24 Market Share: 22%VF-3 and VF-5 share of domestic volumes: 51%Electric scooter player ranking: #1	—	—	—	—
Commercial (Green brand) The commercial-focused Green brand saw strong traction from fleet and B2B customers, accounting for a significant portion of Q4 deliveries. Q4 FY25 Deliveries: nearly half of total	—	—	—	—

VFS operating KPIs by quarter

VFS operating KPIs stated on its earnings calls, by fiscal quarter
KPI	This call Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	Change vs prior quarter
Vehicle deliveries	86.557K In Q4 alone, we delivered 86,557 EVs. Source: earnings call transcript	58.577K Q1 '26 deliveries were 58,577 units, an increase of 61% year-over-year despite being the seasonally slowest quarter. Source: earnings call transcript	-32.3%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

Product	Type	Timeline
Limo Green and VF MPV 7	launch	across key Asian markets
Next generation of VF-6 and VF-7	roadmap	second half 2026
Range extender EV models (beginning with VF-8 REEV)	roadmap	starting 2027 (Vietnam launch)
VF-6 model (B-SUV)	launch	Europe
VF-7 (C-segment electric SUV)	launch	North America
E-bus business	launch	later this year

Deals & partnerships

Autobrains Technologies Collaboration on autonomy roadmap for Level 2+ and Level 2++ towards Level 4 a number of years

VinFast has been working with Autobrains, a leading AI mobility company based in Israel, for several years, including a demonstration of a self-driving robot car.

Tensor Collaboration for Level 4 autonomous Robo-Cars; VinFast as manufacturing and industrialization partner

Tensor is a pioneering AI company developing personally owned Level 4 autonomous Robo-Cars. Fully functional prototypes have been tested, and the program is advancing towards commercialization.

VinRobotics Collaboration to accelerate development of advanced robotics and intelligent automation across VinFast operations

VinRobotics focuses on industrial humanoid robots and a scalable non-humanoid physical AI platform. Integration of VinRobotics' systems into VinFast manufacturing operations.

Risks & headwinds

Impairment charge for North Carolina factory Q4 FY25

$236 million

Mitigation:Management views this as a one-off charge reflecting revised project timing, not a change in long-term commitment to the U.S. market. Expects to reverse impairment in the future as construction resumes.

Higher oil prices potentially influencing EV adoption dynamics

Industry commentary suggests $4 per gallon gasoline could accelerate mass EV adoption.

Mitigation:Higher oil prices reinforce the long-term EV value proposition by focusing consumers on total cost of ownership. VinFast's strategy focuses on improving cost competitiveness, expanding product lineup, and broadening EV accessibility.

Uncertainties in the U.S. EV market and automotive tariffs until factory open in 2028

Not quantified, but impacts dealership expansion strategy.

Mitigation:Disciplined approach to expanding dealership network in the U.S. until the factory opens in 2028. Focus on profitability and retaining existing dealers, and improving quality of third-party service network rather than quantity.

What to watch in Q1 FY26

EV deliveries

next quarter

Current 86,557 units (Q4 FY25)

Target Progress towards 300,000 units (FY26)

Why it matters

Verifying the ramp-up towards the ambitious FY26 delivery target is crucial for assessing the company's growth trajectory and operational execution.

Looking ahead, our 2026 guidance is targeting at least 300,000 EV deliveries.

Find out whether VFS delivers this. Inve re-checks your case every morning.

Q&A highlights

Can VinFast confirm interest in hybrid vehicles and their potential financial impact?

VinFast plans to launch the VF-8 REEV in Vietnam starting 2027, leveraging existing BEV platforms with manageable R&D. It's viewed as an interim solution to expand EV accessibility and address a broader market, not a material shift in strategy.

“Well, VF-8 REEV was planned for launch in Vietnam starting 2027 and with overseas rollout expected over time. The development basically leverages our existing BEV platforms and incremental R&D requirements will be fairly manageable.”

asked by Jesse · answered by Thu Nguyen Pham

3 min read 6 chapters

Detailed narrative

Strategic Investment and Path to Profitability

VinFast's strategic investments in technology, industrial capabilities, and global expansion are anchored to making electric mobility accessible. The company's R&D philosophy centers on a vertically integrated software-defined EV platform, leveraging over 400,000 cumulative car deliveries and 4 years of real-world driving data.

For 2026, the focus is on scale and unit cost optimization, supported by overseas capacity expansion, next-gen vehicle commercialization, and AI integration for smart cars and efficient production, aiming for profitability.

Record Deliveries and Market Share Gains

VinFast delivered 196,919 EVs for the full year 2025, exceeding its guidance, with Q4 alone setting a new record of 86,557 EVs. The 2-wheeler segment also saw significant growth, with full-year deliveries up 5.7x to 406,496 units. In Vietnam, VinFast maintained its #1 OEM position with an estimated 36% market share in 2025, up from 22% in 2024.

International markets contributed 18% of Q4 deliveries and 11% for the full year, with notable progress in India, Indonesia, and the Philippines.

Global Manufacturing Expansion and Product Portfolio

VinFast operates 4 manufacturing facilities globally with a combined annual capacity of 600,000 EVs and 500,000 e-scooters. New facilities were opened in Ha Tinh, Vietnam, Tamil Nadu, India, and Subang, Indonesia in 2025. The company plans to resume construction of its North Carolina factory in 2026, targeting SOP in 2028.

The product portfolio has expanded to three distinct brands (VinFast, Green, Lac Hong), including new MPV models and plans for next-gen VF-6 and VF-7 models with lower BOM costs, and range extender EV models.

Technology and Software-Defined Vehicles

VinFast is investing in owning more of its technology stack, focusing on ADAS and software roadmaps. The company is collaborating with Autobrains Technologies for Level 2+ and Level 2++ autonomy and with Tensor for Level 4 autonomous Robo-Cars, serving as a manufacturing partner.

Internally, VinFast is advancing its transition to EE 2.0 architecture, expected to drive meaningful BOM cost reductions through ECU consolidation and simplified wiring. Proprietary subscription packages with remote control and smart features have been introduced in Vietnam, with plans for expansion.

Cost Optimization and Margin Improvement

The company's Q4 FY25 financial performance reflected early benefits of scale, with revenue of $1.6 billion and gross margin improving to negative 40% from negative 79% YoY. Excluding one-time adjustments, Q4 gross margin would have been negative 28%. Cost optimization programs, including BOM optimization, production scale, supplier pricing, localization, and engineering optimization, are driving these improvements.

Next-gen vehicle platforms are expected to deliver 30% to 40% lower BOM costs, with an additional 5% annual optimization anticipated.

Ecosystem Expansion and Dealer Network

VinFast is expanding its dealer network across Asia, Europe, and North America, aiming to double its footprint in India and partner with large groups in Indonesia and the Philippines. The GSM ride-hailing platform is rapidly scaling its fleet network, contributing to 33% of Q4 deliveries to related parties.

The 2-wheeler strategy is expanding across 5 Asian markets, supported by the V-Green battery swapping network, which had 4,500 stations installed across Vietnam by January 2026.

Summary of the company's earnings call; see how call summaries are prepared. Not investment advice.