VinFast's revenue jumps 86%, but a factory-sale gain masks a $1.24 billion loss from its ongoing business

VinFast, the Vietnamese electric-vehicle maker, said on Monday, Oct. 19, that second-quarter revenue rose 85.5% from a year earlier to about $1.2 billion as deliveries nearly doubled. Its ongoing business lost $1.24 billion, more than twice as much as a year earlier, and only a one-time gain from selling its Vietnamese factories held the quarter's net loss to $56.1 million.

Sales nearly doubled

VinFast delivered 70,085 electric cars, vans and buses in the April-to-June quarter, up 96% from a year earlier and 20% from the first quarter. Sales of electric scooters and bikes more than quadrupled to 286,039. Markets outside Vietnam accounted for about 11% of EV deliveries, and the company said about 6% of its EVs went to related parties.

Total revenue rose 85.5% from a year earlier to VND30.34 trillion, or $1.2037 billion at the company's conversion rate, and vehicle sales rose 92.7% to $1.1439 billion. All dollar figures in this article are VinFast's own conversions from Vietnamese dong.

Losses grew faster than sales

VinFast still spent far more to build and deliver its vehicles than it took in. Cost of sales rose 148% to $1.9595 billion, leaving a gross loss of $755.8 million and a gross margin of negative 62.8%, compared with negative 58.9% in the first quarter and negative 21.8% a year earlier. VinFast blamed two accounting effects. A free-charging program launched in February is booked as a reduction of revenue, even though the extra cost is funded directly by founder Pham Nhat Vuong. And revenue on some vehicle sales was deferred, while the incentives tied to those cars were booked as selling expenses.

Research and development spending rose 65.9% to $153.7 million, and selling, general and administrative costs rose 59.4% to $208.7 million. The operating loss nearly tripled to $1.1563 billion, and the net loss from continuing operations rose 127.8% to $1.2374 billion, or 53 cents a share, compared with 23 cents a year earlier.

The factory sale changes the bottom line

In late June, VinFast completed the sale of its stake in VinFast Trading and Production, the company that held its Vietnamese manufacturing operations, as part of a shift to what it calls an asset-light model in Vietnam. That deal produced a $1.1812 billion net gain from discontinued operations, made up of a $1.4666 billion gain on the disposal minus $285.4 million of losses those operations ran up before the sale. With that gain, VinFast's total net loss for the quarter was $56.1 million.

The divestment is also why the numbers arrived so late. When VinFast reported its second-quarter deliveries on July 30, it said it needed more time to close the books because of the restructuring.

More money from the founder, and a real-estate deal

VinFast ended June with $281.0 million in cash. It said total available liquidity was up to $2.3 billion, but only $281.0 million of it was cash. The rest was up to $698.3 million of undrawn credit from Vingroup, available until Nov. 12, up to $376.9 million of remaining grants from Pham, available through the end of 2026, and $968.3 million under a standby equity agreement with YA II PN that runs until Nov. 1. As of June 30, Pham had paid out $1.6 billion of a $2.0 billion grant pledge, and VinFast owed Vingroup $690.3 million under a separate borrowing commitment.

After the quarter ended, VinFast agreed on Sept. 15 to buy Ngoc Hoi Real Estate Investment, a company majority-owned by Pham, for VND30.86 trillion, or about $1.2 billion. Ngoc Hoi holds a 20% economic interest in the group developing the Hanoi International Sports Urban Area Project. VinFast said the price was below an independent valuation and that the deal closed in the third quarter, funded partly by a $793.5 million capital injection from Pham into its Vietnamese unit through non-convertible dividend preference shares. In the results filed with the SEC, Chief Financial Officer Lan Anh Nguyen called it "a complementary real-estate earnings stream," while the company said EVs remain its core business.

What comes next

VinFast said it is keeping its full-year 2026 guidance despite industry-wide semiconductor supply constraints, though the results release did not restate the targets. Its September deliveries in Vietnam alone were 23,624 EVs, up 17% from August, according to a filing on Oct. 13.

The shares were at $3.02 at 9:31 a.m. ET on Monday, down about 3% from Friday's close of $3.12 and near the bottom of their 52-week range of $2.78 to $5.29.