VinFast Auto (NASDAQ:VFS) reported sharply higher first-quarter 2026 vehicle deliveries and revenue, while management said gross margin was pressured by accounting impacts tied to an expanded free-charging program and other adjustments.
On the company’s earnings call, Chairman Pham Nhat Quan Anh said VinFast is entering “its next phase” with a focus on operational execution, customer experience and a transition toward a more asset-light operating model. He also pointed to higher oil prices and energy-security concerns in Asia as factors reinforcing the long-term case for electric vehicles, particularly in import-dependent markets.
Deliveries rise across vehicles and electric scooters
VinFast’s electric two-wheeler deliveries rose 219% year over year to about 143,000 units, led by the Evo and Feliz models, which represented 81% of deliveries. Nguyen said VinFast received more than 135,000 e-scooter orders in March and shipped more than 93,000 e-scooters to dealers in Vietnam during the month.
In Vietnam, Nguyen said total automotive sales grew 36% year over year to approximately 162,000 units in the quarter, while VinFast’s EV deliveries increased 61%. She said the company has maintained its position as the country’s No. 1 OEM every month since September 2024 and has helped drive Vietnam’s EV adoption rate to approximately 40%.
VinFast also gained share in Vietnam’s two-wheeler market. Nguyen said the company crossed a 10% market-share threshold for the first time in March, reaching a record 17% share of the total two-wheeler industry and becoming the No. 2 player after Honda.
Free-charging program weighs on reported margins
CFO Nguyen Thi Lan Anh said first-quarter revenue rose 41.7% year over year. Gross margin was negative 73.6%, compared with negative 46.4% in the fourth quarter of 2025 and negative 35.2% in the year-earlier period.
The company attributed much of the margin pressure to a $192 million revenue deduction related to the extension and amendment of certain free-charging programs across its markets. Under those programs, eligible VinFast vehicles sold through Feb. 10, 2029, will receive free charging benefits for up to three years. The company recognized the $192 million for vehicles sold through March 31, 2026.
Lan Anh said the program was designed to accelerate EV adoption, improve customer affordability and total cost of ownership, and support market development, particularly in Vietnam and other Asian markets. She said the first-quarter impact included adjustments for vehicles delivered in prior periods, and that the impact for the remainder of the year is expected to be “significantly less material.”
Management said gross margin was also affected by revenue deferrals on certain vehicle sales and net realizable value adjustments, representing about 12% and 14% of revenue, respectively. Excluding those items and the free-charging impact, VinFast said gross margin would have been negative 22.5% in the quarter, compared with negative 47.2% in the fourth quarter and negative 28.1% in the first quarter of 2025.
Research and development expenses were $101 million, down 12.4% sequentially and up 25.8% year over year. SG&A expenses were also $101 million, down 73.9% from the prior quarter and 32.3% from a year earlier, primarily because no impairment charges were required in the first quarter, according to Lan Anh.
Adjusted EBITDA was negative $783 million. Net loss margin was negative 121.6%, compared with negative 95.8% in the fourth quarter and negative 108.5% a year earlier. Earnings per share were negative $0.48, compared with negative $0.64 in the fourth quarter. Capital expenditures totaled $198 million, mainly for manufacturing expansion.
As of March 31, VinFast said it had total available liquidity of up to $2.6 billion, including $219.3 million in cash and cash equivalents, an undrawn Vingroup credit line, remaining grants from Pham Nhat Vuong, availability under a standby equity subscription agreement and expected proceeds tied to a share transfer.
GSM agreement and Vietnam manufacturing spinoff advance asset-light strategy
Nguyen said VinFast’s strategic partnership with GSM is intended to accelerate EV adoption and provide demand visibility during the company’s scaling phase. Under the agreement, VinFast will supply GSM with approximately 1 million electric vehicles and 4 million electric scooters over 2026 to 2030. GSM is eligible for incentives and commercial support.
During the Q&A session, Nguyen said GSM historically accounted for about 15% of VinFast’s total sales, and that its share is expected to be higher in the first year of the new program. She said average selling prices could be reduced by approximately 10% to 15% in the earlier years because of the higher contribution from GSM, but management expects that effect to normalize in later years.
VinFast also discussed its planned reorganization of Vietnam manufacturing assets. Under the proposal, certain assets and operations of VinFast Trading and Production, or VFTP, will be separated into a new entity, VinFast Vietnam JSC, or VFVN. VFVN is expected to hold R&D, intellectual property, sales and after-sales businesses, while VFTP will continue operating the Vietnam manufacturing business.
Following the separation, VinFast plans to transfer its interest in VFTP to a group of purchasers led by Future Investment Research and Development Joint Stock Company for approximately $530 million. The transaction has been approved by shareholders and is subject to customary closing conditions. Nguyen said the company targets completion by the third quarter of 2026.
Management said the reorganization will not affect VinFast’s international operations, including manufacturing facilities in Indonesia and India. The parties will enter a long-term manufacturing agreement, and Lan Anh said post-transaction pricing between VFVN and VFTP will be determined on a cost-plus basis with a target margin of approximately 5% of vehicle cost.
International expansion focused on Asia, with U.S. still described as important
VinFast said Southeast Asia and India remain core growth markets. Nguyen said the company ranked as the No. 1 BEV brand in the Philippines, No. 4 in India and No. 8 in Indonesia at the end of the first quarter.
In India, VinFast opened its 50th dealership during the quarter and remains on track to double its footprint by year-end, Nguyen said. Pham said India is “a very important market” and that VinFast’s goal is to become one of the top players there.
Asked about the U.S. market and North Carolina litigation, the company declined to comment on specifics of the active litigation but said VinFast remains committed to the U.S. It also said it continues to deliver vehicles from existing U.S. inventory and plans to bring next-generation vehicles to the market, while noting that North America and Europe are expected to represent a modest share of total volumes this year.
Autonomy plans include Robotaxi ambitions
VinFast also highlighted a memorandum of understanding with Autobrains and NVIDIA related to its Level 4 autonomy initiatives. Nguyen said VinFast’s future Robotaxi platform will be powered by NVIDIA’s Hyperion architecture.
In response to an analyst question, Nguyen said VinFast is pursuing a phased autonomy strategy. Current vehicles are based on Level 2-plus advanced driver assistance systems, with Level 2-plus-plus upgrades planned for the next generation of vehicles. She said VinFast expects to pilot-test autonomous vehicles in a smart city project in Ho Chi Minh City in 2027, as part of a pathway toward a Robotaxi fleet that could be operated by GSM or sold to external parties where demand exists.
About VinFast Auto (NASDAQ:VFS)
VinFast Auto, founded in 2017 as a subsidiary of Vietnam’s Vingroup, specializes in the design, development and manufacturing of electric vehicles and related mobility solutions. Headquartered in Haiphong, Vietnam, the company operates an integrated production complex that houses research and development, manufacturing and assembly facilities. Backed by Vingroup founder Pham Nhat Vuong, VinFast has rapidly expanded its product line from its first electric SUV, the VF e34, launched in late 2021, to a diverse portfolio of battery electric cars and electric scooters.
The company’s vehicle lineup includes the VF 8 and VF 9 sport utility vehicles, as well as electric passenger cars tailored for markets in Asia, North America and Europe.
