VinFast Auto Ltd.

Good day and thank you for standing by. Welcome to the VinFast Auto Limited second quarter 2024 earnings call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link anytime during the conference. Please only ask one question and one follow-up question once management has replied. Please be advised that today's conference has been recorded. I would now like to hand the conference over to your first speaker today, Nhi Nhi.

Please go ahead. Thank you, operator, and good morning, everyone.

This is Nhi Nguyen from VinFast Investor Relations. Welcome to our second quarter's earnings conference call. Joining me on the call today are Chairwoman of the Board, Madam Thuy Le, and our CFO, Ms. Lan Anh Nguyen. During the call, we will discuss our second quarter performance, business update, and present our outlook for the remainder of 2024. After management remarks, we will have 30 minutes for Q&A. We will also reference a slide deck today, which is accessible on the IR website. Before I turn the call over to Madam T, let me remind you that some of the statements on this call include forward-looking statements under federal securities law. These include, without limitation, statements regarding the future financial and operating outlook, guidance, as well as macroeconomic, industry trends, company initiatives, and other future events. These statements are based on the prediction and expectation as of today. Actual events or results may differ due to a number of risks and uncertainties. We refer you to the cautionary language and the risk factors in our most recent filings with the U.S. Securities and Exchange Commission. In addition, management will refer to non-GAAP financial during the call. A discussion of why we use non-GAAP and information regarding the reconciliation of our non-GAAP versus GAAP is available in the press release that we issued this morning. You can also find it on the final page of our presentation. And with that, I would like to invite Madam Thuy Le to start with management updates.

Thank you, Nhi, and welcome everyone to VinFast second quarter 2024 earnings call. It has been a while since we last spoke with you, And I'm happy to be here again and share exciting updates about VinFast's latest activities and business results. I would like first to remind you that we are fully committed to our mission to contribute to a sustainable future for everyone. As a result, our strategy remains steadfast in being a vertically integrated green mobility solutions company, providing high quality and good value electric vehicles. We recognize that certain markets are currently facing headwinds that pose challenges to the EV outlook. As a result, we took a prudent review of our business plan earlier in the year. However, thanks to our diversified EV product portfolio and access to multiple markets, we have developed execution plans that address these macro challenges capture near-term growth opportunities, and support VinFast delivery target of 80,000 EVs for 2024. We are focused on balancing the twin objectives of growth and profitability. To achieve growth, this means ramping up production, growing our dealership network, and marketing the VinFast brand in new and selected markets. Concurrently, We will continue to enforce our cost reduction initiatives, which have been progressing very well. Our CFO will elaborate in more details later. In 2024, the strategic decision to focus on the growth momentum in our home market, Vietnam, where we have clear advantages, has helped greatly in balancing these two objectives above. Now let me first discuss our Q2 delivery results before I dive deeper into our key markets. We delivered 13,172 EVs in the quarter, in line with our internal forecast. This was up by 44% quarter over quarter, 43% year over year, and brings our total deliveries for the first half of the year to 22,348 vehicles, representing 101% year over year growth. Zooming in. We found that sentiment amongst retail consumer in Vietnam was strong with me to see delivery in Vietnam seeing a growth of 108% year over year in the first half of 2024 and 146% quarter over quarter in Q2. As previously guided, delivery to related party customers, which were mainly to GSM, accounted for 51% of total deliveries in Q2, compared to 57% of that in Q1 2024, and 72% in full year 2023. Looking at our product mix, the VF5 was the main volume driver, Since its launch in Q2 2023, the VF5 has recorded a nine times increase in sales volume in just one year in Q2 2024 versus Q2 last year. During the quarter, the VF5 accounted for 62% of total deliveries. The VF8, VFE34, and VF6 accounted for 30% of total deliveries this quarter. Given that it is still early days for newer models like VF6, VF7, we have seen very encouraging month-over-month growth. For e-scooters, we deliver 13,076 units in Q2, up by 67% quarter-over-quarter and 28% year-over-year. Starting off with our home market, Vietnam, which was the main contributor of our Q2 growth. The strong foundation that Vingroup, together with Vinfast, have built around the green mobility ecosystem led to increased consumer awareness about the VinFast brand and our electric vehicles. We believe that such brand recognition played a pivotal role in accelerating the adoption of EVs. Based on public data from the Vietnam Automobile Manufacturers Association, VinFast recorded the highest year-over-year growth during the first half of 2024 amidst a flat passenger vehicle market. The VF5 has already established the leading market share in the A segment. One of the most talked about products in the market recently is our unique Mini 4-seater ESUV VF3. The new EV model's stylish, roots-full look was very well received. We had 28,000 non-refundable pre-orders within just 66 hours of launch. With its affordable pricing, VF3 is the perfect product for two-wheeler customers who are looking to switch to four-wheelers. With the delivery of VF3 starting in Q3 this year, we have completed the development of all the seven ESUV models. The Vietnam EV market is still in very early days and has a long way to go to reach its peak. VinFast currently has the majority market share of EVs in our home market. Our commanding market position was built on the lack of competition from local car manufacturers and extremely high barriers of entry faced by foreign EV players. Given the strong customer reception to EVs in Vietnam, we expect the momentum in our whole market to be the main driver for our full-year target, which will offset the near-term uncertainty in other markets. Let's discuss our other existing markets, North America. For the U.S., we made the strategic decision to push out the timing of our North Carolina plant in response to current macroeconomic uncertainties. This does not change our long-term business plan, and is part of ongoing assessment of our key markets as a multinational company. Lanang will provide more details about the near-term CAPEX savings as part of the capital reallocation from this decision. Q2 was a transition period for VinFast in the U.S. as we adjusted our lease offering in response to ongoing discounting and sales incentives by other OEMs. We laid the groundwork for further customer attraction, focusing on building brand awareness through our dealer network. We have also established a dealer advisory council as part of an initiative to get more timely insight into our sales and service strategy. We currently have 14 dealer stores across seven states, in addition to our showrooms in California. While acknowledging the challenges in the US during the quarter, we are encouraged by the uptick that we have seen in July and August because of the enhancement made to the model year 2024 for the VF8. In the coming months, we plan to launch the VF9, VF6, and VF7 at the end of the year. Our expanded offering will enable VinFast to widen our reach to US customers and address the demand for affordable ESUVs. The decision by several OEMs to cancel or delay the launch of affordable ESUVs will actually present an opportunity for VinFast to fill the gap in this segment. In Canada, we had a good quarter with a 15% growth quarter over quarter. We also see good traction continue in Q3 while delivery in July and August already achieved by the highest levels in the last 12 months. Product planning for Canada will be very similar to that in the U.S. Now let's visit the new markets, Southeast Asia and India. In Southeast Asia, we expedited our entry into Indonesia and the Philippines to capitalize on the increased customer awareness towards new energy vehicles. Despite being a new entrant to Indonesia less than six months ago, we have already established 15 showrooms covering big cities such as Jakarta and Surabaya as of August 31st. We shipped the first VF-E34 in right-hand drive configuration and started delivery to our customers in the market. Our innovative go-to-market strategy in a competitive market like Indonesia has gained traction with local customers. Almost 100% of our sales and reservations in Indonesia have been driven by our differentiated, unique battery leasing offering. We expect the battery leasing program to be well received in the Philippines as well, and it will further validate our efforts to address EV affordability. In India, we signed a number of LOIs with dealers in 15 major districts and cities. BINFAST assembly plant in Tamil Nadu with an initial capacity of 50,000 electric vehicles per year is on track to commence operation in 2025. As a recap, Despite taking a prudent approach during Q2, we have also made significant progress in building our global distribution network with dealership network deliveries increasing quarter over quarter and accounting for 23% of second quarter delivery. As of August 31st, We had established 155 showrooms across all markets, with approximately 70% being dealers' stores. The second quarter served as a crucial transition period for VinFast, allowing us to reflect on our strategies, strengthen our competitiveness in our home market, and expand both our global distribution network and product portfolio. laying a solid foundation for achieving our delivery target this year. With that, I will pass the call over to Lan Anh to discuss our financial results for the quarter.

Thank you, Madam Thuy, and hello everyone. Q2 2024 was an in-line quarter with our focus. We continue to focus on cost optimization and shrinking capital allocation while maintaining a level of flexibility in our cap expense and continuing to grow our top line. Q2 2024 revenue of $357 million was in line with our forecast, representing a 9% year-over-year increase and 33% increase quarter-over-quarter. This was driven by the product's mixed trip as sales of more affordable models accounted for a larger proportion of deliveries during the quarter. Our reported gross loss for Q2 2024 was $224 million, equivalent to a gross margin of minus 62.7% as compared to Q1 2024 of minus 58.7% and minus 42.5% in Q2 2023. As we launched sales initiatives to boost our brand awareness in various markets and to enhance our competitiveness, a higher charge to write down carrying value of inventories and RV was recognized in Q2. The NRV in Q2 was $104 million compared to $5 million in Q1. This was the main reason for the increase in gross loss margin. In terms of cost optimization, We saw improvements in both bill of materials and production cost. In Q2, average bill of material cost for all models declined by 16% and average production cost for all models declined by 43%. Keep in mind that water cost of materials is currently trending down. It will take some time for these savings to be visible in our P&L once the vehicles made with these materials are delivered. We expect bill of material cost optimization to continue and this will be an important factor for our path to profitability. Operating expenses for Q2 2024 rose 28% quarter over quarter and 24% year-over-year as we expanded into targeted international markets. We continue to evaluate every cost item closely. I would like to highlight the improvement in SG&A expense as a percentage of revenue after we switched to a hybrid sales model with our dealer network. Sales through our dealer channels have increased during the quarter, and in Vietnam, the number of showrooms was flat from Q1 to Q2, while sales in this market increased 64% quarter-over-quarter. IND was $110 million, which was flat compared to Q1, and a decrease of 23.3% compared to the same period last year. The year-over-year decline was in line with the number of our EV modules progressing from the development stage to commercial production in the last four quarters. CapEx in Q2 was $108 million as compared to $197 million in Q1. The bulk of our CapEx was for the development of manufacturing facilities and payables of charging infrastructure development. Of those CapEx items, payables of charging infrastructure development were non-recurring. We have taken a disciplined approach for our capex outlook as we optimize resource and capital allocation. Adding to what Madam Thuy has shared about the North Carolina facility, the adjusted timeline allows us to reallocate the capital to the lower cost India and Indonesia facilities and see lower capex requirements for this year. Any new investments for R&D or CapEx will be carefully evaluated under a prudent framework. Given a certain level of discretion in our CapEx, we have some flexibility to adjust our variable spending. Turning to our liquidity position, as of 30 June 2024, we have $98 million cash on hand and have not utilized the intended grants from our founder and our $968 million e-lock facilities. These resources can continue to support our cash needs for operations and committed capex plans for this year. We have also prepared our debt service arrangements by refinancing or extending facilities agreed upon the principle with our partners. I would like to stress that our 2024 delivery target is attainable through a ramp-up of our production in Vietnam and our growing distribution network. Before I hand the call over to Madam Thi for a closing remark, I would like to address our recent earnings restatement. While the earnings restatement only had a minor impact on actual results, we are taking this very seriously. We are putting in place further internal policies and conducting regular audit activities on the transparency of own data handling process and financial statements. As we navigate our first year as a public company, I want to provide assurances about our commitment to making strong internal control as a top priority at Infast.

Thank you, Lan Anh. For the rest of 2024, Vietnam, Where the momentum is accelerating in Q3, thanks to the VF5, Vin plays a key role in mitigating near-term softness in other markets and serves as our primary revenue driver. In addition to leveraging Vingroup's extensive ecosystem, we have a large and continuous growing charging infrastructure, flexible battery leasing options, and strong after-sales services for VinFast to be the number one player in our whole market. International markets will play an important part in our longer-term growth trajectory as we increase our brand awareness and expand distribution. We are prudently monitoring the macroeconomic environment while focusing on revenue growth and cost optimization to reach break-even in the foreseeable future. Finally, I would like to share our observations about the competitive landscape and our positioning. With legacy OEMs shifting away from the EV initiatives, noises surrounding hybrid vehicles and other pure EV players mainly focus on the premium EV segment. BINFAST is the only pure EV player with a comprehensive product lineup that can deliver affordable, high-quality EVs to everyone. We thank you for your continued support. And with that, now I would like to turn it over to the operator for the Q&A session.

Thank you.

As a reminder to ask a question, you will need to press star one, one on your telephone and wait for your name to be announced. To withdraw your question, please press star one, one again. If you wish to ask a question via the webcast, please type it into the box and click submit. Once again, we remind you to please only ask one question and one follow-up question. I would now like to hand the Q&A to the floor for any questions on the booth.

Thank you, operator. We have the first question from the floor. Have you seen any changes in the competitive landscape in Vietnam, given that new players are entering into the market?

Thank you, Nhi. The Vietnam EV market still has a lot of headwind to grow, and this is evident in the interest of other foreign OEMs that have expressed in entering Vietnam recently. So we believe that potential new market engines can help quicken the pace of EV adoption in our home market. However, given that we have a very dominant green mobility ecosystem in the country, which includes the V green charging infrastructure, we are confident that we can maintain our leading position despite the new market engines. brand loyalty to Vingroup and Vingroup ecosystem and the benefits offered to VinFast owners within our ecosystem and also serve to strengthen our leading position in Vietnam.

Thank you, Madam Thuy. We have the next question from the line. CFO mentioned that bill of material and production cost went down by 16% and 43% per unit. Can you provide a little bit more color on that? How should we think about the bill of material cost reduction and production cost reduction for the second half of 24?

Thank you, Nhi. During the quarter, we took a number of initiatives to make improvements in bill of material costs, including lower battery costs. design optimization around ADAS, introduction of customer-paid upgrades for certain features, supply chain optimization around key components. Keep in mind that while the cost of material is currently trending down, but it will take some time for these savings to be visible in our P&L once the vehicles equipped with these materials are delivered.

we expect this deal material cost optimization effort to continue into the foreseeable future thank you miss and operator please open up the line for live question thank you we will now take our first question please stand by

And the first question comes from the line of Andres Shepherd from Cantor Fitzgerald. Please go ahead. Your line is now open.

Hi, everyone. Good morning. Good afternoon. Thanks for taking our questions, and congratulations on the quarter. I wanted to maybe ask about growth margins. It looks like this quarter margins were maybe slightly below expectations. So just curious, you know, now with the, deliveries of the VF3 model ramping up. Just curious if you can maybe give us some color. What kind of gross margins trajectory should we expect for later this year, and what does the path towards break-even gross margins look like? Thank you.

Hey, Angus.

So if you look at the gross margin after taking out the one-off charges for the NIV, we're actually trending more positive than last quarter. But because we took about $104 million of the charges to the impact to NRV, that's why we see seemingly worsening the margin, but actually margin improved compared to the last quarter. And also there's some impact from the limited sales offering on the market. Previously on the lower models, in the upcoming quarters, more like on the higher models, so that we always want sales promotion from time to time. So there's some impact of that, but mostly because of the NIV. We believe that the margin is going to get better, like it will trend better in the coming quarters.

Thank you. Sorry. And then the path towards the break-even gross margins, do we have an idea of what that timeline might look like? Thanks.

We're looking at what we guided before, positive gross margin by next year and a positive EBITDA margin by 2026, the same estimates.

Got it. Super helpful. Thanks, Dewey. And then maybe just my last follow-up here. Can you just remind us where total liquidity stands as of Q2? So, you know, around $98 million in cash. What is the total liquidity, including, you know, the ELOC facilities and the grants? And how are you thinking about capital needs? Thank you.

So I think we, in terms of liquidity, we still have the ELOC line, we still have about 100 million in cash at the end of the quarter. So that's about a billion dollars. At the Vingroup's shareholders, general shareholders meeting, our chairman also announced additional gift to VinFast, so about another billion dollars. So we're looking at around like two billion dollars. if we don't go back and tap our majority shareholders again.

Wonderful. Very helpful. Thank you so much again, and congratulations on the quarter. I'll pass it on.

Thanks, Andy. Thank you. We will now take our next question. And the next question comes from the line of Steven Wurstig from Redbush Securities. Please go ahead. Your line is now open.

Hey, guys. This is Steven Wurstig on for Dan Ives. Thanks for taking the question, and thank you for giving us a little bit more background on the quarter. I wanted to ask a little bit more on the revenue side, more so the product mix that you're expecting going forward, especially with a bunch of these new vehicles hitting the market this next quarter and then throughout the rest of this year, I just want to get an idea of what the expectation would be for what the mix would be going forward, especially with the variance in ASPs.

Yes, so the revenues, what we provided guidance of 80,000 units this year, right? Starting from Q3 and Q4, you're going to see a lot more delivery of VF3. And VF5 was still the leading revenue driver for the previous quarter. So we still expect a lot more of VF3 and VF5. Yeah, so more on the more affordable models.

All right, perfect. Thank you.

Thanks, Stephen. Thank you. We will now take our next question. Please stand by. And the next question comes from the line of Tyler DiMatteo from BTIG. Please go ahead. Your line is now open.

Hi, everyone. Thanks for taking the questions here. I wanted to start on some of the comments surrounding the marketing efforts And I'm just curious, can you provide a little more color in terms of how you're thinking about marketing for the business to boost brand awareness and kind of what are some of the steps that you're taking here to kind of get the name out of the company as you look to roll out and really scale production of the various models? Just any thoughts there?

Are you talking about globally or just U.S.? ?

Globally would be great, but if you can kind of parse it by region, that would be good as well. Thank you.

So basically, we refocus the marketing activities on the markets where we anticipate more volume. That is similar to our plans. In markets like Vietnam or even to some extent in ASEAN, for example, our name, the whole Vingroup name is very well known in Vietnam in particular, the whole ecosystem and the Vingroup brand and it's very well known. So we take a different approach and we don't need to spend a lot more marketing money on the brand awareness because people are already aware of it and especially we already We have been in the market for a couple of years, so people are aware of the good quality and the service level that we can deliver in the market. In international markets, in the US in particular, for example, our brand is still new, so we need We need to spend more on brand awareness. The way that we do marketing across VinFast but also in the whole Vingroup ecosystem is we let the quality and our commitment to the quality, to doing the right thing to the customers, speak for themselves. And then, you know, the words of mouth will get out and people will start coming in. more or less taking the same approach in other markets as well. This year, we rely a lot on our dealership partners to spread the word out and together with expansion of the dealership network, we're going to see more and more brand awareness in the U.S.

Okay, great. Thank you for that. And then my follow-up here, I just kind of wanted to talk a little bit about the Vietnam consumer and some of your comments in terms of EV sentiment there. You know, I'm curious, really, what's underpinning that, you know, improving sentiment? You know, obviously, it's early days. And I imagine a lot of that is just due to the general increase in the number of EV models. And as pricing comes down as well, that, you know, that's obviously positive. But I'm curious, do you think that there's anything else besides those two points underpinning that improving sentiment that maybe, you know, people aren't appreciating?

Yeah, you are right about the improving sentiment. We feel it very well on the market, right? We start seeing, like, our sales team is getting so excited about, I mean, it's a lot easier to sell our vehicles, and we started gathering momentum You can see that clearly from the sales to non-related parties increasing and we getting more and more traction with ourselves in the market. But I think if you look at Vietnam in particular, you look at the fundamentals, right? The vehicle penetration in Vietnam is still very low. The four wheel penetration in Vietnam is still very, very low. And so we have a lot of room to grow. there and also we make vehicles that are affordable to everybody and with all these green initiatives in Vietnam as well as globally we believe that we will be able to attract a lot more attention from customers not only just in Vietnam but in other markets as well okay great thank you for the time really appreciate it I will turn it back to the queue thanks Tyler

Thank you. I would now like to hand back to the room for any questions on the floor.

Thank you, operator. We have the next question from the line. What is the impact of the typhoon Yagi to your high-farm factory?

Thank you for asking. The typhoon Yagi is The aftermath of Typhoon Yagi is very devastating for Vietnam. We haven't seen anything like this in the past, I would say, 30 years. And the whole country is still suffering and still trying to recover from the damages that was caused by typhoon and after that. uh to our factory um the um there were some damages to surrounding infrastructures and a lot of trees were blown away but we weekly work together and resume operations within a few days um we're still accessing the the impact of the typhoon um but so far we're back in operations thank you madam tree we have the next question from the line how is different things

progress for the CAPEX and construction progress of the two CKD facilities in India and Indonesia. What will be the main funding channels to fund the CAPEX?

So the conscious decision to push out the start of production of the North Carolina plant ahead with the capital relocation, that release the capital for us to invest in the plant in Indonesia, in India, so that we can enter this market competitively. In Q2, our capital is only $108 million. Managers upgrade to the Vietnam factory, and we order savings from not investing this year in the North Carolina plant. Part of it will push to the Indonesia and the India plant.

Thank you, Madam Thuy. We have the next question from the line. PV power plants to build 1,000 charging stations by 2035 in Vietnam available to all EV brands. How do you think this development might impact VinFast's competitive advantage in Vietnam in the long run? What challenges or opportunities do you see for VinFast as the charging infrastructure landscape evolves?

Thank you. Well, today we have about 75,000, 75,000, 80,000 charging stations across Vietnam. um pretty much anywhere in vietnam like any major location in vietnam uh on bin fat vehicles uh and we continue um our chairman v green uh continue uh um investing in um in charging stations Actually, we just came up with a very interesting model where VGreen basically franchises the charging network to all the people in Vietnam. So by the end of the year, I think VGreen's plan is to build another about 20,000, 40,000 charging stations across Vietnam. So, I mean, we think that other players coming to the market and building more charging stations, it just helps with the market, helps with the EV adoption. It's great for the country, great for the market. So, yeah, we think it's a good thing for the transition to the green mobility in Vietnam.

Thank you, Madam Thuy. We have the next question from the line. Please provide an update on your capital expenditure outlook given the decision to delay North Carolina plant. How has this changed your international expansion strategy and are you still targeting 50 markets?

Thank you. We started the year with a totally different outlook for for the EV market and the market this year has not been has not been I mean EV has not been in favor this year so we after Q1 we took a more prudent review of our strategy and decided to to take a more prudent approach for the rest of the year so delaying The plant in North Carolina is part of that prudent approach. And also going into only selected markets is also another part of the prudent approach. Today, I think we are in about 15 selected markets in the world. And for the rest of the year, we continue pushing in this market instead of expanding further.

Thank you, Madam Thuy. Any updates on your entry into new Asian markets in Southeast Asia? How has the customer reception been to VinFast? Are you working with local partners for charging and financing?

That's a very long question. So Southeast Asia and ASEAN is one of the very important and key markets for our global expansion strategy. Basically, Vietnam is part of the ASEAN economic bloc. So like I said before, we do have certain advantages in ASEAN markets. And in the... To serve the foreseeable increasing demand of EVs in this market, we focused on two competitive advantages that we had. First of all, affordability, like making EVs really accessible to everyone in those markets, and then after-sales policy. For affordability, FinPAS has a comprehensive portfolio at multiple price points, very innovative battery leasing program that was very successful in Vietnam and proven to be very welcome in Indonesia and we believe in many other markets in ASEAN as well. On after sales, we continue to exercise to offer the above market standard warranty offering, you know, like seven years, 10 years warranty, 160,000 to 200,000 kilometers. And so that way you can remove the concerns during the early adoption stage and accelerate consumer choices toward EVs. In terms of charging, VGreen after being split out, cut out from VinFast, it's been developing very aggressively. So VGreen is setting up charging network in the market in ASEAN as well, not only in vintage showrooms, but also in many other public charging networks in this market as well.

Thank you, Madam Thuy. We have the next question on the line. Do you still target to achieve 80,000 this year? Given that first half, the company only delivered 25% of the target.

Yes, we are committed to the 80,000 vehicles delivery this year. And so the main volume drivers, as I mentioned before, would be the VF3. We had more pre-orders. This is like with non-refundable deposit of about $650 and we have more than we can deliver this year. So we target to deliver about 20,000 VF3 this year in Vietnam market alone. And the VF5 continue to be leader on the market as well. So these two models will contribute significantly to the 80,000 delivery target that we had this year. So we still form about 80,000 delivery target.

Thank you, Madam Thuy. We have one final question from the line. It's great to hear that VinFast is focused on newer markets in Asia. As you think about VinFast's longer-term outlook, can you share how much you expect Asia market to contribute?

I think I shared this in some earlier calls as well. We think that Asia, I mean we Our journey started from Vietnam, but we went to the US and Europe for brand awareness and to enter the market to prove that our vehicles have good quality. satisfy the most difficult customers in the world. But immediately, this year, we return to markets near us because we see a lot of potential in this market with very low EV penetration and with the policies and the culture a lot closer to us. And so Asia is very important to us. When you look at India, the most populous country in the world with 1.5 billion people. We look at Indonesia, the third most populous country in the world with about 300 million people. These are the huge market for us to penetrate. So Asia, we think in the longer term, we probably account for maybe 30, 50% of our global volume.

Thank you, Madam Thuy. That's pretty much all the questions we've got for today. Thank you, everyone, for attending and for your continued support to VinFast. If you need any clarification, please let us know by sending an email to ir at vinfastauto.com.

Goodbye and take care. Ladies and gentlemen, this concludes today's conference call.

Thank you for participating. You may now disconnect.