TIẾNG VIỆT VinFast reports H1 after-tax loss at nearly VND6.6 trillion
Vinfast has introduced limied edition SUV VinFast President. Photo: Vinfast
The motorbike and automobile manufacturing unit of Vietnam’s largest private conglomerate Vingroup’s 2020 second half loss was four times more than its VND1.57 trillion loss reported for the same period of last year.
The loss includes financial expenses, amortization while sales of the vehicle was below the cost of production, the company said in a financial statement. Car sales were partly affected by the Covid-19 pandemic.
According to data released by VinFast, the manufacturer has to suffer VND11 trillion of depreciation costs and financial expenses annually.
Late 2019, Billionaire Pham Nhat Vuong, chairman of Vingroup told Bloomberg that in the upcoming 5 years, VinFast will not have a profit. The company is expected to offset losses for car manufacturing segment.
The conglomerate will have to spend a lot of money to compensate for the loss in the automobile business, which is estimated at VND18,000 billion ($781.6 million) per year, he was cited by Bloomberg.
Vingroup sets a strategy to export VinFast electric cars to the US market.
In the first half of 2020, VinFast saw its car sales continuously increased in months, even surpassing other famous car manufacturers in the market.
In the first quarter of the year, VinFast sold 5,124 cars, ranked 5th in sales in the quarter, ahead of major brands including Mazda, Ford or Suzuki.
In April, VinFast announced to stop car production activities to focus on manufacturing ventilators when pandemic hit the country.
In May and June, business activities resumed with sales of VinFast cars sold at 2,100 units and 2,170 units, respectively.
In the six-month period, the Vietnamese automaker sold 9,394 cars, while last year, its car sales reached 17,214 units.
Vingroup founded the business in 2017 with an initial charter capital of VND500 billion ($21.7 million). In May, it reached VND26,916 billion ($1.16 billion). Vingroup owns 51.15% stake while Vuong holds 48.77% of the shares.
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