VFSWW VinFast Auto Ltd

 

Filed Pursuant to Rule 424(b)(3)
Registration No. 333-274475

 

Prospectus Supplement No. 4

(To Prospectus dated October 28, 2024)

 

 

VinFast Auto Ltd.

 

64,041,969 Ordinary Shares

 

 

This prospectus supplement amends and supplements the prospectus dated October 28, 2024 (the “Prospectus”), which forms a part of our Registration Statement on Form F-1 (Registration Statement No. 333-274475). The Prospectus relates to: (i) the offer and sale, from time to time, by the selling securityholders named therein, or their pledgees, donees, transferees, or other successors in interest, of an aggregate of 60,720,967 ordinary shares in the capital of VinFast Auto Ltd., a public company incorporated under the laws of Singapore (Company Registration No: 201501874G), no par value (“ordinary shares”), and (ii) the issuance from time to time by us of up to 3,321,002 ordinary shares issuable upon the exercise of up to 3,321,002 warrants. Each warrant entitles the holder thereof to purchase one ordinary share at a price of $11.50 per ordinary share.

 

This prospectus supplement is being filed to update and supplement the information included in the Prospectus with the information contained herein. This prospectus supplement is not complete without, and may not be delivered or utilized except in combination with, the Prospectus, including any amendments or supplements thereto. This prospectus supplement should be read in conjunction with the Prospectus and if there is any inconsistency between the information in the Prospectus and this prospectus supplement, you should rely on the information in this prospectus supplement.

 

Our ordinary shares and warrants are listed on the Nasdaq Stock Market LLC (“Nasdaq”) under the symbols, “VFS” and “VFSWW.” On November 25, 2024, the last reported sale price of our ordinary shares and warrants as reported on Nasdaq was $3.93 per ordinary share and $0.40 per warrant, respectively.

 

 

Investing in our securities involves a high degree of risk. See “Risk Factors” beginning on page 9 of the Prospectus for a discussion of information that should be considered in connection with an investment in our securities.

 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if the Prospectus or this prospectus supplement is truthful or complete. Any representation to the contrary is a criminal offense.

 

The date of this prospectus supplement is November 26, 2024

 

 

Part I – Unaudited Interim Condensed Consolidated Financial Statements
As of and for the three months and nine months ended September 30, 2024

 

VinFast Auto Ltd.

 

Unaudited Interim Condensed Consolidated Balance Sheets

 

		As of December 31, 2023				As of September 30, 2024				As of September 30, 2024
		VND million				VND million				USD
		(Adjusted) (*)				(Unaudited)				(Unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents			4,095,472				1,892,408				78,545,968
Restricted cash			102,932				330,589				13,721,371
Trade receivables			469,918				2,800,286				116,228,199
Advances to suppliers			4,753,634				5,681,496				235,815,216
Inventories, net			30,141,381				31,524,062				1,308,432,408
Short-term prepayments and other receivables			8,006,103				9,571,564				397,275,723
Short-term derivative assets			548,010				359,465				14,919,894
Current net investment in sales-type lease			87,552				103,828				4,309,467
Short-term investments			4,105				4,078				169,261
Short-term amounts due from related parties			2,374,382				3,044,295				126,355,996
Assets classified as held for sale			-				19,441				806,915
Total current assets			50,583,489				55,331,512				2,296,580,418
NON-CURRENT ASSETS
Trade receivables			110,312				148,576				6,166,770
Property, plant and equipment, net			79,122,703				79,971,399				3,319,279,417
Intangible assets, net			1,346,324				1,170,472				48,581,414
Operating lease right-of-use assets			7,081,509				5,966,780				247,656,166
Long-term derivative assets			66,124				-				-
Long-term prepayments			217,180				902,458				37,457,270
Non-current net investment in sales-type lease			620,665				1,037,090				43,045,283
Investment in equity investees			1,214,938				1,193,272				49,527,747
Other long-term investments			918,040				918,040				38,104,014
Long-term amounts due from related parties			51,073				37,208				1,544,349
Long-term restricted cash			660,363				1,074,466				44,596,605
Other non-current assets			4,865,001				4,055,941				168,345,204
Total non-current assets			96,274,232				96,475,702				4,004,304,239
TOTAL ASSETS			146,857,721				151,807,214				6,300,884,657

 

(*)	As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control.

 

 

VinFast Auto Ltd.

 

Unaudited Interim Condensed Consolidated Balance Sheets (continued)

 

		As of December 31, 2023				As of September 30, 2024				As of September 30, 2024
		VND million				VND million				USD
		(Adjusted) (*)				(Unaudited)				(Unaudited)
DEFICIT AND LIABILITIES
CURRENT LIABILITIES
Short-term and current portion of long-term interest-bearing loans and borrowings			42,924,034				48,731,446				2,022,639,190
Short-term financial liabilities			18,258,063				20,377,714				845,793,965
Convertible debenture			1,190,475				260,854				10,826,962
Trade payables			12,146,588				14,321,429				594,422,820
Deposits and down payment from customers			1,194,112				2,206,915				91,599,842
Short-term deferred revenue			149,747				146,304				6,072,469
Short-term accruals			11,431,878				10,526,781				436,922,799
Other current liabilities			13,875,625				5,437,774				225,699,332
Current operating lease liabilities			1,524,356				1,382,636				57,387,457
Amounts due to related parties			49,341,144				65,779,927				2,730,250,571
Total current liabilities			152,036,022				169,171,780				7,021,615,407
NON-CURRENT LIABILITIES
Long-term interest-bearing loans and borrowings			30,170,149				21,249,203				881,965,841
Long-term financial liability			137,057				33,686				1,398,165
Other non-current liabilities			2,194,253				4,969,146				206,248,537
Non-current operating lease liabilities			5,330,344				4,494,980				186,567,883
Long-term deferred revenue			1,569,733				2,237,424				92,866,144
Deferred tax liabilities			1,025,264				983,269				40,811,398
Long-term accruals			123,867				123,877				5,141,618
Amounts due to related parties			19,682,747				43,547,531				1,807,476,487
Total non-current liabilities			60,233,414				77,639,116				3,222,476,073
Commitments and contingencies
DEFICIT
Ordinary shares, no par value - VinFast Auto Ltd (2,337,788,498 and 2,338,695,829 shares issued and outstanding as of December 31, 2023 and September 30, 2024)			9,847,536				9,867,167				409,544,972
Accumulated losses			(190,502,556	)			(237,192,337	)			(9,844,865,189	)
Additional paid-in capital			38,258,499				55,274,244				2,294,203,462
Other comprehensive loss			(385,873	)			(253,078	)			(10,504,213	)
Deficit attributable to equity holders of the parent			(142,782,394	)			(172,304,004	)			(7,151,620,968	)
Non-controlling interests			77,370,679				77,300,322				3,208,414,145
Total deficit			(65,411,715	)			(95,003,682	)			(3,943,206,823	)
TOTAL DEFICIT AND LIABILITIES			146,857,721				151,807,214				6,300,884,657

 

(*)	As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control.

 

 

VinFast Auto Ltd.

 

Unaudited Interim Condensed Consolidated Statements of Operations

 

		For the three months ended September 30,												For the nine months ended September 30,
		2023				2024				2024				2023				2024				2024
		VND million												VND million
		(Unaudited) (Adjusted) (*)				VND million (Unaudited)				USD (Unaudited)				(Unaudited) (Adjusted) (*)				VND million (Unaudited)				USD (Unaudited)
Revenues
Sales of vehicles			7,698,425				11,251,190				466,989,997				16,711,887				24,704,105				1,025,364,421
Sales of merchandise			14,656				23,717				984,394				52,925				83,705				3,474,246
Sales of spare parts and components			215,420				429,505				17,826,962				587,758				1,071,442				44,471,091
Rendering of services			127,059				176,121				7,310,049				300,046				785,144				32,588,055
Rental income
Revenue from leasing activities			199,570				446,004				18,511,766				515,640				878,243				36,452,207
Revenues			8,255,130				12,326,537				511,623,168				18,168,256				27,522,639				1,142,350,020
Cost of vehicles sold			(9,802,999	)			(14,331,580	)			(594,844,146	)			(25,462,167	)			(36,988,994	)			(1,535,258,955	)
Cost of merchandise sold			(14,831	)			(48,831	)			(2,026,771	)			(53,364	)			(105,369	)			(4,373,428	)
Cost of spare parts and components sold			(134,965	)			(159,808	)			(6,632,964	)			(365,791	)			(541,083	)			(22,458,100	)
Cost of rendering services			(294,448	)			(396,707	)			(16,465,654	)			(683,044	)			(1,398,377	)			(58,040,800	)
Cost of leasing activities			(233,743	)			(347,497	)			(14,423,152	)			(584,174	)			(712,060	)			(29,554,643	)
Cost of sales			(10,480,986	)			(15,284,423	)			(634,392,687	)			(27,148,540	)			(39,745,883	)			(1,649,685,926	)
Gross loss			(2,225,856	)			(2,957,886	)			(122,769,519	)			(8,980,284	)			(12,223,244	)			(507,335,906	)
Operating expenses
Research and development costs			(3,594,921	)			(2,091,725	)			(86,818,786	)			(12,247,235	)			(7,346,959	)			(304,941,643	)
Selling and distribution costs			(1,461,999	)			(2,050,062	)			(85,089,528	)			(4,031,763	)			(5,286,246	)			(219,410,036	)
Administrative expenses			(1,358,349	)			(1,411,148	)			(58,570,871	)			(4,095,209	)			(5,068,940	)			(210,390,570	)
Net other operating (expenses)/incomes			(542,307	)			389,450				16,164,446				(625,362	)			(1,621,658	)			(67,308,264	)
Operating loss			(9,183,432	)			(8,121,371	)			(337,084,258	)			(29,979,853	)			(31,547,047	)			(1,309,386,419	)
Finance income			51,392				75,208				3,121,571				405,307				303,228				12,585,730
Finance costs			(3,857,994	)			(4,991,829	)			(207,190,014	)			(9,961,257	)			(13,671,144	)			(567,432,200	)
Net loss on financial instruments at fair value through profit or loss			(2,561,432	)			(251,088	)			(10,421,616	)			(3,840,505	)			(1,813,037	)			(75,251,608	)
Share of gains/(losses) from equity investees			18,749				10,236				424,854				29,671				(21,666	)			(899,265	)
Loss before income tax expense			(15,532,717	)			(13,278,844	)			(551,149,463	)			(43,346,637	)			(46,749,666	)			(1,940,383,762	)
Tax income/(expense)			(13,015	)			26,900				1,116,507				27,523				(10,472	)			(434,650	)
Net loss for the period			(15,545,732	)			(13,251,944	)			(550,032,956	)			(43,319,114	)			(46,760,138	)			(1,940,818,412	)
Net loss attributable to non-controlling interests			(19,097	)			(24,671	)			(1,023,990	)			(70,319	)			(70,357	)			(2,920,226	)
Net loss attributable to controlling interest			(15,526,635	)			(13,227,273	)			(549,008,966	)			(43,248,795	)			(46,689,781	)			(1,937,898,186	)

 

(*)	As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control.

 

 

VinFast Auto Ltd.

 

Unaudited Interim Condensed Consolidated Statements of Comprehensive Loss

 

		For the three months ended September 30,												For the nine months ended September 30,
		2023				2024				2024				2023				2024				2024
		VND million												VND million
		(Unaudited) (Adjusted) (*)				VND million (Unaudited)				USD (Unaudited)				(Unaudited) (Adjusted) (*)				VND million (Unaudited)				USD (Unaudited)
Net loss for the period			(15,545,732	)			(13,251,944	)			(550,032,956	)			(43,319,114	)			(46,760,138	)			(1,940,818,412	)
Other comprehensive (loss)/income
Other comprehensive (loss)/income that will be reclassified to profit or loss in subsequent periods (net of tax):
Exchange differences on translation of foreign operations			56				211,138				8,763,458				2,665				132,795				5,511,767
Net other comprehensive (loss)/income that will be reclassified to profit or loss in subsequent periods			56				211,138				8,763,458				2,665				132,795				5,511,767
Total comprehensive loss for the period, net of tax			(15,545,676	)			(13,040,806	)			(541,269,498	)			(43,316,449	)			(46,627,343	)			(1,935,306,645	)
Net loss attributable to non-controlling interests			(19,097	)			(24,671	)			(1,023,990	)			(70,319	)			(70,357	)			(2,920,226	)
Comprehensive loss attributable to controlling interest			(15,526,579	)			(13,016,135	)			(540,245,508	)			(43,246,130	)			(46,556,986	)			(1,932,386,419	)
Net loss per share attributable to ordinary shareholders			VND				VND				USD				VND				VND				USD
Basic and diluted			(6,725	)			(5,656	)			(0.23	)			(18,779	)			(19,968	)			(0.83	)
																							Unit: Shares
Weighted average number of shares used in loss per share computation
Basic and diluted			2,308,837,804				2,338,695,829				2,338,695,829				2,303,020,921				2,338,281,841				2,338,281,841

 

(*)	As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control.

 

 

VinFast Auto Ltd.

 

Unaudited Interim Condensed Consolidated Statements of Cash Flows

 

	For the nine months ended September 30,
	2023				2024				2024
	VND million
	(Unaudited) (Adjusted) (*)				VND million (Unaudited)				USD (Unaudited)
OPERATING ACTIVITIES
Net loss for the period		(43,319,114	)			(46,760,138	)			(1,940,818,412	)
Adjustments:
Depreciation of property, plant and equipment		4,641,698				7,003,706				290,694,642
Amortization of intangible assets		182,020				281,132				11,668,617
Impairment of assets and changes in fair value of held for sale assets		1,112,176				1,661,290				68,953,223
Changes in operating lease right-of-use assets		823,044				1,337,659				55,520,649
Provision related to compensation expenses, assurance-type warranties and net realizable value of inventories		4,572,774				7,739,874				321,249,907
Deferred tax income		(27,523	)			(41,995	)			(1,743,037	)
Unrealized foreign exchange losses		561,937				195,785				8,126,219
Net losses on financial instruments at fair value through profit or loss		3,840,505				1,813,037				75,251,608
Change in amortized costs of financial instruments measured at amortized cost other than nominal interest		2,350,639				2,163,146				89,783,174
Losses on disposal and write-off of fixed assets		-				195,905				8,131,200
Share of (gains)/losses from equity investees		(29,671	)			21,666				899,265
Share-based compensation expenses		-				70,899				2,942,722
Change in working capital:
Trade receivables and advance to suppliers, net investment in sales-type lease		(1,055,332	)			(3,400,254	)			(141,130,370	)
Inventories		(6,058,517	)			(6,335,334	)			(262,953,306	)
Trade payables, deferred revenue and other payables		(4,759,867	)			4,798,611				199,170,340
Operating lease liabilities		(590,129	)			(1,214,021	)			(50,388,951	)
Prepayments, other receivables and other assets		(514,556	)			(1,012,555	)			(42,026,937	)
Net cash flows used in operating activities		(38,269,916	)			(31,481,587	)			(1,306,669,447	)

 

(*)	As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control.

 

 

VinFast Auto Ltd.

 

Unaudited Interim Condensed Consolidated Statements of Cash Flows (continued)

 

	For the nine months ended September 30,
	2023				2024				2024
	VND million (Unaudited) (Adjusted) (*)				VND million (Unaudited)				USD (Unaudited)
INVESTING ACTIVITIES
Purchase of property, plant and equipment, and intangible assets		(19,346,390	)			(10,577,759	)			(439,038,683	)
Proceeds from disposal of property, plant and equipment		-				36,490				1,514,548
Disbursement of bank deposit and loans		(11,513,514	)			(2,338,057	)			(97,043,000	)
Collection of loans		11,157,900				2,320,000				96,293,529
Payment for acquisition of a subsidiary (net of cash held by entity being acquired)		(6,900	)			(10,252	)			(425,518	)
Net proceeds from the disposal of a subsidiary		-				(20,000	)			(830,116	)
Payment for investments in equity investees		(1,039,033	)			-				-
Receipt from government grants		-				1,093,933				45,404,599
Net cash flows used in investing activities		(20,747,937	)			(9,495,645	)			(394,124,641	)
FINANCING ACTIVITIES
Capital contribution from owners/issuance of ordinary shares		3,994,291				-				-
Additional amount paid up to convert warrants to capital		1,421,444				-				-
Deemed contribution from owners		9,627,000				16,994,658				705,377,413
Proceeds from borrowings		99,668,587				69,300,057				2,876,356,494
Cash received under a business cooperation contract		9,625,000				-				-
Cash payment under a business cooperation contract		-				(9,625,000	)			(399,493,629	)
Repayment of borrowings		(65,853,147	)			(37,386,583	)			(1,551,761,217	)
Net cash flows from financing activities		58,483,175				39,283,132				1,630,479,061
Net decrease in cash and cash equivalents and restricted cash		(534,678	)			(1,694,100	)			(70,315,027	)
Cash, cash equivalents and restricted cash at beginning of the period		4,361,631				4,858,767				201,667,165
Net foreign exchange differences		20,656				132,796				5,511,806
Cash, cash equivalents and restricted cash at end of the period		3,847,609				3,297,463				136,863,944
Supplement disclosures of non-cash activities
Debt conversion to equity		(2,619,400	)			-				-
Non-cash property, plant and equipment additions		9,650,032				9,282,789				385,289,877
Establishment of right-of-use assets and lease liabilities at commencement dates		2,942,877				222,930				9,252,895

 

(*)	As adjusted retrospectively to reflect the historical financial statements of VinES acquired on January 19, 2024, deemed as business combination under common control.

 

 

Part II – Third Quarter 2024 Financial Results and Business Update

 

Financial Results for the Third Quarter of 2024

 

Revenues

 

·	Total revenues were VND12,326,537 million in the third quarter of 2024, representing an increase of 49.3% from the third quarter of 2023 and an increase of 42.2% from the second quarter of 2024. Total revenues are primarily comprised of revenue from EV sales.

 

·

Vehicle sales were VND11,251,190 million in the third quarter of 2024, representing an increase of 46.1% from the third quarter of 2023 and an increase of 46.1% from the second quarter of 2024. Revenue growth from the third quarter of 2024 and the second quarter of 2024 was driven by an increase in EVs sale volumes due to the Company’s expansion in both domestic and overseas markets.

 

Cost of Sales and Gross Margin

 

·

Cost of sales was VND15,284,423 million in the third quarter of 2024, representing an increase of 45.8% from the third quarter of 2023 and an increase of 8.3% from the second quarter of 2024. The increase over the third quarter of 2023 and the second quarter of 2024 was primarily attributable to an increase in the cost of vehicles sold as the Company delivered more EVs to customers in the third quarter of 2024.

 

·	Gross loss was VND2,957,886 million in the third quarter of 2024, representing an increase of 32.9% from the third quarter of 2023 and a decrease of 45.6% from the second quarter of 2024.

 

·

Gross margin was negative (24.0%) in the third quarter of 2024, compared to negative (27.0%) in the third quarter of 2023 and negative (62.7%) in the second quarter of 2024. The improvement of gross margin over the third quarter of 2023 was primarily driven by increased sales and improved costs. The improvement of gross margin over the second quarter of 2024 was primarily driven by increased sales, improved costs and decrease in charges to write down the carrying value of inventories.

 

Operating Expenses

 

·

Research and development (R&D) costs were VND2,091,725 million in the third quarter of 2024, representing a decrease of 41.8% from the third quarter of 2023 and a decrease of 21.4% from the second quarter of 2024. The decrease over the third quarter of 2023 and the second quarter of 2024 was primarily the result of the Company having frontloaded the work on product development.

 

·

Selling, general and administrative expenses were VND3,461,210 million in the third quarter of 2024, representing an increase of 22.7% from the third quarter of 2023 and a decrease of 9.8% from the second quarter of 2024. The increase over the third quarter of 2023 was primarily due to the increase in labor costs, rental costs and marketing expenses which are primarily attributable to the Company’s efforts to scale its sales operations. The decrease over the second quarter of 2024 was primarily due to the impairment of assets that do not support BOM cost optimization recognized in the second quarter of 2024.

 

·

Net other operating incomes were VND 389,450 million in the third quarter of 2024, representing an increase of 171.8% and 126.7% from net other operating expenses in the third quarter of 2023 and the second quarter of 2024, respectively. The increase in net income over the third quarter of 2023 and the second quarter of 2024 was mainly due to an increase in foreign exchange gain.

 

Loss from Operations

 

·	Loss from operations was VND8,121,371 million in the third quarter of 2024 representing a decrease of 11.6% from the third quarter of 2023 and a decrease of 39.4% from the second quarter of 2024, as a result of the foregoing.

 

 

Net Loss and Net Loss Per Share

 

·

Net loss on financial instruments at fair value through profit or loss was VND251,088 million in the third quarter of 2024, representing a decrease of 90.2% from net loss of the third quarter of 2023 and a decrease of 73.6% from net loss of the second quarter of 2024. The decrease over net loss of the third quarter of 2023 and the second quarter of 2024 was mainly attributable to changes in the fair value of currency interest rate swaps contracts, financial liabilities in respect of dividend preference shares, convertible debenture and warrants.

 

·	Net loss was VND13,251,944 million in the third quarter of 2024, representing a decrease of 14.8% from the third quarter of 2023 and a decrease of 29.4% from the second quarter of 2024.

 

·	Net loss attributable to controlling interest was VND13,227,273 million in the third quarter of 2024, representing a decrease of 14.8% from the third quarter of 2023 and a decrease of 29.4% from the second quarter of 2024.

 

·	Basic and diluted net loss per ordinary share were both VND5,656 in the third quarter of 2024, compared with VND6,725 in the third quarter of 2023 and VND8,015 in the second quarter of 2024.

 

Balance Sheet

 

·	Cash and cash equivalents were VND1,892,408 million as of September 30, 2024.

 

Third Quarter of 2024 Business Updates

 

		3Q2024				2Q2024				3Q2023
EV Deliveries(1)			21,912				13,172				10,179
E-scooter Deliveries			18,894				13,076				28,219

 

·	EV deliveries were 21,912 in the third quarter of 2024, representing an increase of 66% from the second quarter of 2024 and an increase of 115% from the third quarter of 2023.

 

·	E-scooter deliveries were 18,894 in the third quarter of 2024, representing an increase of 44% from the second quarter of 2024 and a decrease of 33% from the third quarter of 2023.

 

·	As of October 31, 2024, the Company had 173 showrooms globally for EVs and 160 showrooms and service workshops for e-scooters, including VinFast’s showrooms and dealer showrooms.

 

Became top-selling automotive brand in Vietnam²

 

·

In September, VinFast recorded robust monthly deliveries in its home market of Vietnam, firmly positioning VinFast as the top-selling car brand in Vietnam for September. This marked the first time since VinFast was established seven years ago that a Vietnamese EV brand outperformed all international competitors to become the market leader in terms of monthly sales.

 

·

In October, VinFast delivered more than 11,000 EVs to customers in Vietnam, representing a 21% increase compared to September and bringing total deliveries in Vietnam to more than 51,000 EVs for the year up to October 31, 2024. This positioned VinFast as the best-selling automotive brand in the Vietnamese market for October and the first ten months of 2024.

 

Internal reorganization of the group companies under VinFast Trading and Production JSC (“VFTP”)

 

·

Under the reorganization plan announced earlier this month, a new Vietnam-incorporated company, VinFast Investment and Development Joint Stock Company (“VFDI”) will be spun off from VFTP as a new direct subsidiary of the Company. VFDI will hold certain of the VinFast group’s international subsidiaries, namely a 99.3% interest in Vingroup Investment Vietnam JSC, which in turn will wholly own VinFast’s subsidiaries in France, Canada, the Netherlands, Australia and Germany.

 

·

VFTP will continue to be a direct subsidiary of the Company and will hold the Company’s EV manufacturing business in Vietnam. In addition, VFTP will hold a 99.5% ownership interest in VinFast Commercial and Services Trading Limited Liability Company, as well as 99.8% interest in VinEG Green Energy Solutions JSC.

 

·	The reorganization is an internal exercise, and the Company will maintain its majority ownership of all of its current subsidiaries. Completion of this internal reorganization is subject to obtaining the necessary regulatory approvals.

 

Shareholder funding

 

·	VinFast’s Founder and Chief Executive Officer, Mr. Pham Nhat Vuong, and his associated companies intend to provide up to VND50 trillion in free grants to the Company and its subsidiaries through the end of 2026.

 

·	In addition, Vingroup Joint Stock Company intends for it and its subsidiaries (collectively “Vingroup”) to provide our subsidiaries incorporated in Vietnam with up to VND35 trillion in loans through the end of 2026.

 

Recapitalization of VFTP

 

·	Vingroup will make additional capital contributions to VFTP by converting up to VND80 trillion of loans extended by Vingroup to VFTP into preference shares issued by VFTP.

 

New EV manufacturing facility in Ha Tinh, Vietnam

 

·

In response to increasing demand for affordable EVs and to improve production efficiencies, the Company plans to add a new completely knocked down (CKD) factory in Ha Tinh, Vietnam focusing on VF 3 and VF 5. The factory will be under a long-term lease structure to optimize initial spendings. The factory targets a maximum capacity of 300,000 EVs per year, subject to demand and general market conditions, with a gradual ramp up in capacity and production overtime. The construction of the factory will begin in early December, and the factory is expected to commence operations in 2025.

 

Progress on market expansion

 

·	North America: In November, VinFast started delivering the VF 9 to customers in the U.S. and Canada.

 

·

Indonesia: In the third quarter, VinFast delivered its first VF e34s with right-hand drive configuration to customers in Indonesia. The Company’s planned assembly plant in Indonesia is targeted to commence operations in 2025, with an initial capacity of 50,000 EVs per year. In the fourth quarter, the Company delivered its first batch of VF 5 EVs to the market. As of October 31, 2024, VinFast had 17 dealer stores in 15 cities in Indonesia.

 

¹ Includes VF 3, VF e34, VF 5, VF 6, VF 7, VF 8, VF 9 and e-bus.

² Based on data from the Vietnam Automobile Manufacturers’ Association, Thanh Cong Group and Company internal data (for VinFast only).

 

·

The Philippines: In September, VinFast opened sales of the VF 3 with a starting list price of 645,000 Pesos (battery-exclusive). During the 12th Philippines Electric Vehicle Summit (PEVS) in October, VinFast opened sales of the VF 7 with a starting list price of 1,470,000 Pesos (battery-exclusive). The Company delivered its first batch of VF 5 EVs in the third quarter of 2024 and is currently accepting reservations for three models in the market: the VF 3, VF 5 and VF 7. As of October 31, 2024, VinFast had eight dealer stores in six cities in the Philippines.

 

·	India: VinFast’s planned assembly plant with an initial capacity of 50,000 EVs per year is preparing for equipment and machinery installation process and is on track to commence operations in 2025.

 

·	Middle East: In October, VinFast held its official brand launch event in the Middle East market and opened its second dealer store in the market, located in downtown Dubai, United Arab Emirates.

 

Related Party Transactions

 

·	Out of 21,912 EVs delivered in the third quarter of 2024, 22% were to related parties of the Company.

 

·	Out of 18,894 e-scooters delivered in the third quarter of 2024, 5% were to related parties of the Company.

 

Strategy and Capital Requirements

 

Our primary target markets remain Vietnam, North America and Europe, and we are regularly evaluating opportunities to enter new countries and regions in Europe, Asia, the Middle East and Africa to grow our global footprint in areas where we identify high potential for EV demand growth. We may establish or enlarge our presence in existing and new markets through a range of distribution models, directly or with strategic public and private partners or agents. To ensure that we continue to have sufficient production capacity to support our current and future operations, we will from time-to-time endeavor to add manufacturing, assembly and distribution capacity across our markets through the expansion of existing infrastructure and new brownfield and greenfield projects. While we remain focused on the mini- through E-segments of the electric SUV market, we are also evaluating the full spectrum of vehicle types for future product development. We continuously monitor our global expansion strategy and have the ability to accelerate, moderate or otherwise deviate from our existing distribution, manufacturing, assembly, marketing and other plans for any market at any time.

 

Our funding sources for our capital requirements to implement our growth strategy may include loans and grants from our major shareholders and affiliates, the public and private debt and equity capital markets, existing and new third-party loans and borrowing and cash from operations. We are prepared to opportunistically access the debt and equity capital markets, subject to market conditions. We also seek to capture available tax and other incentives and subsidies to reduce our costs of investment and operations.

 

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