VinFast Auto Ltd.

Good day and thank you for standing by. Welcome to the BINFAST Auto Limited Q4 2024, a full year 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 answer your question, please press star 1, 1 again. Please see advice at today's conference is being recorded. I would now like to hand the conference over to your speaker today, Nying Nguyen. Please go ahead.

Thank you, operator, and good morning, everyone.

This is Nying Nguyen from Binfast Investor Relations. Welcome to our fourth quarter earnings conference call. Joining me today are Chairwoman of the Board, Madam Thuy Le, and our CFO, Ms. Lan Anh Nguyen. During the call, we will discuss our fourth quarter performance, business update, and present our outlook for 2025. After management remark, we will have 30 minutes for Q&A, and we will also reference a slide deck today which is accessible on the IR website. Before I turn over to Madam Thuy, 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, macroeconomic, industry trends, company initiatives, and other future events. These statements are based on the prediction and expectation as of today. Actual event or result may differ due to a number of risks and uncertainties. We refer you to the cautionary language and the risk factor in our most recent filings with the US Securities and Exchange Commission. In addition, management will refer to non-GAAP financials during this 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 in our slide deck. And with that, I would like to invite Madam Thuy to start with management remarks.

Thank you, Nhi. And hello, everyone. Thank you for joining us today. I'm thrilled to discuss VinFast's outstanding Q4 and 2024, which was a year full of achievements that have set VinFast up well for 2025. It was a good year in which we exceeded our delivery target, established our market leadership in Vietnam, expanded to new markets, and made progress on our path to profitability. Before I recap the year, I would like to take the opportunity to address the event that are currently reshaping the global trading landscape and will continue to take shape before stabilizing. Here at Vinfast, we remain agile to the changes in regulatory and geopolitical landscape. Our vertically integrated manufacturing capabilities and high localization rate are key competitive advantages of Vinfast during this uncertain period. At the same time, We are taking proactive steps to safeguard and sustain sales performance, including strengthening customer and dealer engagement, optimizing go-to-market strategies, and reinforcing brand awareness. We are focused on building greater products, investing in innovation, and ensuring that customers get high-quality, affordable EVs. We are keeping our 2025 guidance, and we continue to evaluate and be flexible as the landscape evolves. Let us now look back at 2024. We ended 2024 with a total delivery of 97,399 EVs globally, exceeding our 80,000 delivery target. Q4 2024 saw a steep ramp up in our output where we set a new monthly delivery record for every month in the quarter. VinFast continues to reshape customer behavior through a diverse vehicle lineup, first-of-its-kind green mobility ecosystem, and pioneering incentives, including a free charging program in Vietnam. 2024 also saw important progress in our international expansion. As non-Vietnam sales grew 10 times year over year, increasing contribution from 3% to 10% of our total deliveries. We also had our brand debut in new Asian markets and continue to strengthen the VinFast dealer network globally. As of March 31, 2025, VinFast has 322 showrooms, of which 89% are dealer stores, compared to 123 showrooms as of December 31, 2023. and of which 78% were dealer stores. That is 160% growth. Our three new CKD plants in Asia are expected to begin operations in 2025. They will ensure a holistic alignment between our market expansion and manufacturing capabilities. In addition to our strong top-line growth, full-year gross lot margin excluding NRV and one-off accounting charges narrowed to minus 32% for minus 40% in 2023. Q4 2024 gross loss margin was impacted by an accounting charge we had to book for the VinFast pre-charging program for all EVs sold in Vietnam up until December 31, 2024. Our CFO Lan Anh will touch more on this later. Our balance sheet was also strengthened with a disbursement of grants from our founders and loans from Vingroup. More specifically about deliveries during Q4 and recent business highlights, VinFast had record deliveries in all three months of Q4, bringing total deliveries for the quarter to 53,139 electric vehicles globally. increased by 143% quarter-over-quarter and 342% year-over-year. Our B2C sales grew by 140% quarter-over-quarter and over 20 times year-over-year. Proportion of EV delivery to non-related party customers was 81%, which increased from 78% in Q3-24 and 18% in Q4-23. During the quarter, we also delivered 31,170 e-scooters, which increased by 65% quarter-over-quarter and 41% year-over-year. In Southeast Asia, we continue to strengthen our presence through foundational work and strategic partnerships with local businesses. Recall that in 2023 and early 2024, VinFast founders also announced the launch of new separate entities, GSM, a dedicated EV taxi and ride-hailing service, and VGreen, a charging network developer. Together with VinFast, these companies form a vertically integrated green mobility ecosystem, which combines electric vehicles, shared mobility services, and charging infrastructure tackling the two biggest hurdles when it comes to early EV adoption, unfamiliarity with EV experience and anxiety over charging. Outside of Vietnam, Indonesia marked the debut of our green mobility ecosystem with the launch of GSM in Jakarta late December last year, while VGreen also announced their commitment to build one of the largest charging networks in Indonesia to serve VinFast car owners. The Philippines, which is the second international market for our green mobility ecosystem, has seen VGreen announce MOUs to establish charging stations across key cities. NGSM is expected to launch later this year. As of March 31, 2025, we had 258 showrooms and dealer stores across Southeast Asia. including 22 in Indonesia and 6 in the Philippines. Our CKD plant in Indonesia is on track to be operational by end of 2025. Indonesia and the Philippines represent the key long-term growth markets, and with Vietnam as the base for our broader Asia expansion, our whole market provides a strategic anchor that enhances our agility and strengthen our ability to scale successfully in new markets. In 2024, Vietnam served not only as our home market, but also as a testbed for VinFast's end-to-end EV strategy. We addressed key adoption barriers, consumer unfamiliarity, pricing gaps, and charging access through consistent execution anchored in three core values, quality vehicles, competitive pricing, and exceptional after-sales service policy. On the product side, 2024 marked the first year where all seven models in our lineup were in production and available in Vietnam. VF3 and VF5, our most affordable models, reshape public perception of EVs from luxury products to practical everyday vehicles. Together, They accounted for 60% of total deliveries, which is remarkable considering VF3 only started deliveries from last July. Our green mobility ecosystem has played a crucial role in overcoming consumer skepticism and raised anxiety by offering low-risk exposure to EV before purchase. The VFE34, our first EV model, remains integral to our taxi operations and has paved the way for share mobility adoption. Recognizing the importance of share mobility services in accelerating EV transition, we launched the Green Series, a dedicated lineup tailored for transportation use cases. This includes tailored version of the VF-5 and VF-E34, specifically adapted for transportation purposes, as well as two new models, Limo Green, our entry into the MPV segment, and Minio Green, designed to convert even more two-wheeler users into four-wheeler EV drivers. We observe that this trend is being well adopted by 100 local taxi brands who have started their journey of electrification. To complement our product offering, in late 2024, BINFAST introduced a pioneering free charging program to all customers for over two years until 2027. This program was designed to minimize EV cost of ownership, making them even more accessible to a wider population and further driving EV adoption in Vietnam. As a result of our efforts for data from Vietnam registration, VinFast ended 2024 with around 20% total passenger vehicles market share, up from just 2% in 2023, delivering over 87,000 vehicles, up by 171% year-over-year, and driving Vietnam's EV penetration to one of the highest levels in Asia, establishing VinFast as the nation's number one auto brand. Realizing that we are entering into a new chapter, we also made an adjustment to our go-to-market strategy by removing the battery leasing program. This program has played a key role in narrowing the affordability gap between EVs and ICE vehicles over the past year. Battery leasing was valuable in early days of EV adoption and has since served its purpose and will discontinue as of March 31, 2025. On the manufacturing side, as Southeast Asia's only vertically integrated EV OEM, our close proximity to key suppliers and manufacturing capabilities enables us to keep pace with strong demand to further enhance efficiency and capacity We broke ground on a second manufacturing facility in Vietnam last December. Scheduled to begin production in mid-2025, the new Hateng CKD plant will support our affordable models and unlock platform-level synergies across our global footprint. Let's talk about India. In January, we made our brand debut in India at the Bharat Mobility Global Expo with the launch of the VF6 and VF7. We are diligently working to increase our brand awareness and local partnership ahead of the completion of our Tamil Nadu facility. This 400-acre integrated manufacturing facility is on track to begin operations by mid-2025. and in the commissioning phase with equipment, systems, and processes are being tested. We will start the CKD assembly for 50,000 vehicles annually. Moving on to North America and Europe. 2024 was a year of healthy growth of interest in North America, with the US and Canada accounting for approximately 4% and 2% of our global deliveries, respectively. The increased sales in the U.S. were driven by the introduction of the dealership distribution model, besides our direct-to-consumer showrooms. Our dealers' local knowledge and connections have greatly helped us with our go-to market, allowing us to widen our market reach in a more cost-efficient manner. Since late 2020, Three, we have been transitioning from purely direct-to-consumer to a hybrid distribution model with heavy focus on dealer showrooms. With the growing acceptance of the VinFast brand in the U.S. and our strategic initiative to optimize our footprint, we are taking this one step further with a plan closer of our D2C showrooms in California by end of June 2025. This initiative comes with a gradual replacement by dealer showrooms, which is expected to drive greater efficiency in sales and marketing. In a similar fashion, VinFast is initiating a plan for dealer network in Europe. The company has signed an agreement with Autohaus OOPS. to operate showrooms in Germany and plan to develop a dealer network across major cities in Germany, France, and the Netherlands. This approach enables VinFast to optimize operations, reduce risk, and leverage local market expertise. As of March 31, 2025, VinFast had 48 showrooms in North America and 14 in Europe. In the U.S., We have developed a network of 38 dealers. Now let me walk you through our three pillar growth strategy, product, capacity, market, which will drive our 2025 target of doubling 2024. First, products. Our mission is simple, to make EV accessible to everyone with multiple brand segments to serve various use cases. Next, capacity. With the new CKD facilities coming on in 2025, we are effectively adding capacity of up to 300,000 vehicles per year to our total design capacity, well mapped with our focus market. Finally, market reach. Expansion in Asia will continue to be our top priority for 2025. At the same time, we will continue our strategic expansion of our dealer network in other regions and evaluate the local demand environment to determine which new models to introduce. Our 2025 guidance reflects a strong confidence in our ability to grow market share in Vietnam and expand internationally, especially in Asia, which remains central to our long-term growth strategy. To support this, We have taken proactive steps to localize manufacturing and build strong partnerships with local dealers. This effort helps us better navigate different regulatory environments and operate more effectively in diverse markets. Southeast Asia continues to attract attention from global automakers, but one of the things that sets VinFast apart is our ecosystem approach. By integrating services across our green mobility network, we are creating a strong foundation for long-term EV adoption and building lasting brand value. With that, I will hand it over to Lan Anh to discuss our financial results and outlook.

Thank you, Madam Thi. Despite a challenging macroeconomic backdrop, VinFast concluded 2024 with strong operational momentum. laying a foundation for further growth in 2025. As a young and dynamic EV manufacturer, we need to focus on continued innovation to build better quality and better performance vehicles. At the same time, we are streamlining our operations and managing costs carefully to support our revenue growth and progress towards profitability to support our Asia growth We plan to strategically deploy capital into three new CKD plans that are scheduled to begin operation in 2025, further strengthening our production flexibility. Now, let me recap our 2024 performance. Revenue for the Q4 2024 was $678 million, up by 34% quarter-over-quarter. and 70% year-over-year. Full-year revenue was $1.8 billion, increased by 58% year-over-year. Cost of goods sold in Q4 2024 was $1.2 billion, increased by 93% quarter-over-quarter, as volumes ramped up significantly. Full-year cost of goods sold was $2.8 billion, which increased by 67% versus 2023. Q4 2024 gross margin was minus 79% versus minus 24% in Q3. The pressure on this quarter's gross margin was due to an accounting charge that we booked in relation to the free charging program in Vietnam. Mr. Pham is responsible for paying the cost to implement the program. for the EVs sold on or before December 31st of 2024. The estimated amount to be paid directly by Mr. Pham for the entire recharging period is approximately $242 million. This amount is recognized as a revenue deduction and a deemed contribution to the owner in our financial statements for fiscal year 2024. Therefore, we need to book an adjustment on revenue corresponding to the charging benefits of own EV sold on or before December 31, 2024. It will remove for the impact of the pre-charging program and NRV. Q4 2024 gross profit margin was flat quarter over quarter and saw an improvement from minus 35% from a year prior to minus 26%. 2024 gross margin loss was minus 57% compared to the minus 49% in 2023. Again, if we adjust for the impact of the free charging program and NRV, full-year gross loss margin saw an improvement from minus 40% in 2023 to minus 32% in 2024. To elaborate on improved efficiency, in Q4 2024, we continued to see average unit bond and production costs for EVs declined by 16% and 43%, respectively. For 2024, average unit bond and production costs for EVs declined by 34% and 50% year-over-year, respectively. Some of our high-volume models, if excluding NRV, depreciation and amortization, and free-charging expenses, are now achieving positive gross profit, reflecting the benefits of scale and BOM optimization. Moving to operating expenses, Q4 2024, SG&A expense was $268 billion, up by 89%, quarter over quarter, and by 108% year over year. For the full year 2024, SG&A was $694 million, up by 50% year over year. The increase in SG&A compared to Q3 is primarily attributable to our efforts to scale our sales operation globally. and the impairment charge to battery production line due to business adjustments. If we exclude the impact of the impairments and some one-off items during Q4 2024, SG&A as a percentage of revenue declined to 19% from 26% in Q3. For the R&D, Q4 2024 R&D spend was $110 million, up by 28% quarter-over-quarter and decreased by 15% year-over-year. For the full year 2024, R&D spend was $412 million, decreased by 35% year-over-year. The decrease over the Q4 of 2023 was primarily due to the reduction in engineering and development costs. as we completed the majority of the product development work in our existing models. The increase over the Q3 2024 was primarily due to the introduction of the existing model to foreign markets. For EBITDA and bottom line, Q4 2024 EBITDA loss is minus US$928 million, The EBITDA losses widened in line with the increased sale volume in Q4 2024. Full year 2024 net loss was minus $3.2 billion. If we exclude the impact of free charging programs, NIV, and impairment of assets, net loss margin improved to minus 128% in 2024 from minus 203% in 2023. For cashman, Q4 2024 capex is $261 million, 93% higher than Q3 due to capex on our facilities. However, full-year capex was $686 million, which decreased by 32% year-over-year. Our cash burn significantly improved in 2024, decreased by 39% year-over-year, to $1.9 billion reflecting our discipline in cost and capital management, among which cash burn from operating activities was only $1.25 billion compared to $2.1 billion in 2023. When it comes to quality of cash flows management, our cash burn in 2024 is equivalent to 104% of revenue compared to 267% in 2023. As stated earlier, we expect to continue investing in R&D and CapEx in 2025 as we continue to improve customer experience and innovation. This would be partially offset by cost savings in other areas. At the same time, we will continue making progress towards profitability by scaling our top-line roles and further cost savings. Turn to our liquidity position. Last November, we announced a capital support package from our founder Meet the Fund and Vingroup through a combination of grants and loans. By 31st of December 2024, we had received approximately $800 million, and by 31st of March 2025, total disbursements has exceeded US$1.5 billion, strengthening our balance sheet and runway. In addition to the commitments disbursed from Mr. Pham and VinGroup, VinFast has access to nearly US$1 billion of liquidity including an allot facility. As of 31 March 2025, VinFast's liquidity position stood at approximately US$3 billion. This includes a US$968 million ELOC facility, around US$1.9 billion in funding from our founders and loans from Vingroup. While we continue to be supported by our founders and corporate parents, we are evaluating capital markets opportunities to diversify our funding sources. Lastly, an update on the profitability perspective. 2024 marked a meaningful progress in our scaling journey and operational discipline. In 2025, we are focused on scaling volume through new products launch and deepening our market presence in Asia. At the same time, we are executing against clear levels for BOM optimization, manufacturing efficiency, and strategic capital deployment to drive margin improvement and move toward full-year EBITDA profitability.

Operator, let's now open for Q&A. Thank you.

As a reminder, to ask a question, please press star 1 1 on your telephone and wait for your name to be announced. To answer your question, please press star 1 1 again. We kindly ask you to limit yourselves to one question and one follow-up person. We will now take the first question from the line of Andres Shepard from Canto Federal. Please go ahead.

Hi, everyone. Good morning or good evening, and thank you so much for taking our questions, and congratulations on the quarter. Hey, just a First question is, so you're reaffirming your guidance for 2025 for now. I guess, you know, what gives you confidence in your guidance so far, just given all of the macro conditions? And how should we think about deliveries for 2025 in terms of, you know, Vietnam versus other markets like India, Indonesia? You know, what kind of breakdown should we be thinking about? Thank you.

Hi, Andreas. How are you doing? Thank you for the question. So in terms of the confidence for the guidance, very similar to 2024, we expect that Q1 is going to be the slowest quarter. So we announced about 35,000 deliveries in Vietnam in Q1. Then we expect some uptake in Q2 as two of the new green models will start delivering toward the end of the quarter. And then the bulk of the 45,000 green non-cancellable pre-orders that we just received will start hitting in the second half of the year. So, overall, we think that the first half contribution will be approximately 25-30%. And then you will see most of the rest of the deliveries in the second half of the year with Q4 again being the strongest quarter. So we see a good result from the orders for the green series in 2025. And in the first quarter this year, we already we already exceeded the first half of last year, and we continue building the momentum in Vietnam and in other markets. So basically, I mean, looking at Vietnam and other markets, we have confidence that we should be able to deliver at least double what we did last year. In terms of... the breakdown between Vietnam and other markets. We expect that other markets will contribute more than 10%, similarly to last year. Yeah, so Vietnam, Indonesia, and we expect Asia market, Indonesia, Philippines, India will contribute quite significantly this year. Thank you.

Wonderful. Thanks, Madame Dewey. That's super helpful and super thorough. Really appreciate it. Just one last question. Just on gross margins, can you remind us, you know, the path to positive gross margins? It seems like, you know, most sales for this year will probably be the VF3 and VF5 again. with lower ASPs, you know, how should we think about the path to positive gross margins?

Thank you.

Yeah. As for the gross profit margin, actually 2024, we mark significant progress in our scale, strategic execution, and is an encouragement to our path to profitability. BINFAST also ended the year with strong momentum, having more like a double quarterly revenue year over year. So excluding the NRV and UNOF accounting charges, we have narrowed our full year gross loss margin to minus 32% from minus 40% in 2023. So in 2025, we are focused on the scaling volume through the new product launches and deepening our market presence in Asia. At the same time that we are executing against clear levels for form optimization, manufacturing efficiency and strategic capital deployment to drive margin improvement and move toward the full year EBITDA profitability. Yep.

Perfect. Thank you so much again and congratulations on the quarter. I'll pass it on.

Thank you. Thank you. We will now take the next question from the line of Greg Lewis from BTIG LLC. Please go ahead.

Yeah, I thank you and good evening and good afternoon. Good morning everybody. I was hoping to. understand a little bit better the accounting treatment or how you're realizing the EV charging credit. If you could just walk us through how much we realize at the point of sale and then is that something that since the charging is in place for a couple of years, it's realized over the life of the three-year window?

So for the free-charging program, actually during the Q4 2024, we had the one-time charge was recognized in the Q4 to account for the free-charging expenses for the old EV that we sold on or before the 31st of December 2024. So you can see that we recognize 242 million US dollar deduction, kind of the deduction in the revenue is in line with the US GAF. uh accounting treatment that we need to deduct to the revenue and um because mr farm our founder um is responsible for um this uh this charging we spend um but we increase for the gym contribution from the um the shareholder uh so that's why you you see the one-time charge a big amount in the q4 2024 Going forward, it's expected that this code is going to be recognized in line with the corresponding vehicle sales for the duration of the free charging program that we are offering to customers. Currently, under our sales policy, the free charging program is going to be ended on 31st of December of 2027.

Okay, great. And then when we think about, you know, ASPs and mix, you know, I mean, I guess the focus is going to be on the VF3 and VF5. So how should we think about the ASPs trending, you know, in 20, you know, for the rest of the year? How are you guys thinking about that on pricing?

Yeah, you are correct. That's actually with the increasing of the VF3, VF5 heavily in the hour mix in Q4. So, ESP is around $16,000 per car. It's kind of the average in Q4. That compared to the around $20,700 in the Q3. This elicits for the decline of the over 22% in the ASB. So the driven primarily by the VF3, VF5. And in overall in 2024, the ASB is around 19,300 per car. In fact, we see the ASD in the low range during the early adoption stage, where customers tend to prefer small cars, low price tag to explore and experience. However, the ASD is only one part of the equation. The other part is unit growth. So, our objective to introduce more affordable models, is to capture a possibly underserved cohort of the consumer that's prioritized value in both the dollar terms, but also the environment impact. So, ultimately, strong unit growth should offset the ASB decline and lead to sustainable revenue growth.

Okay, super helpful. Thank you for taking my questions.

Thank you. We will now take the next question from the line of James McAbee from Chardon Capital Markets. Please go ahead.

Yes, thank you. When we look at capital spending for 2025 and 2026, are the amounts that you've budgeted similar to what you spent in 2024 or

uh significantly higher or lower um so uh you you refer to the the investment uh so we can like um enter into our cash burn that's um i i just um um like a hefty number that in 2024 we have the cash burn 1.9 million us dollar And we expect that in 2025, approximately around 2.5 billion US dollar. Out of that, we expect to spend 1.8 billion for the CAPEX and IND. And the CAPEX India is for our CKD facilities across Asia, and that we expect to be operational in 2025. And for the R&D around both CapEx and OPEX is around 700 or 750 million US dollars.

So the cash burn from operation is reducing?

The cash burn for the operation is around Yeah, slightly reduced focus last year.

Thank you. And secondly, when we evaluate the share of sales coming from the VF3 and VF5 in 2025, is that going to be approximately similar to what it was in Q4 of 2024?

Please stand by, your conference will resume shortly.

I think it's less than 50% because we have the greens coming in as well. Yes. So less than Q4 last year, James.

OK, I hate to do this to you, but the conference blanked out for during your answer. So if you can just summarize what your answer was. Sorry about that.

The percentage of VF3 and VF5 this year is expected to be less than 50%, which is less than Q4 last year. But we also, we're adding the green series So that would account for almost a quarter of the deliveries for this year as well.

Very good. Thank you so much. Thank you.

Thank you. There are no further questions on the phone at this time. I would like to hand over for any webcast questions now.

Thank you, Operator, and thank you, Ms. Tui, Ms. Linan. We have the first question from the webcast. With the target to at least double volumes in 2025, what percentage do you expect international markets to contribute? I think we have already addressed this, so let's move on to the next one. With the recent announcement of shifting focus and not boosting US, Canada, Europe sales, what does that mean to the current owners, dealerships, and service centers? What is the update on the routine NHTSA investigation?

OK, let me take it. So the first question is about the reactions to the US, Canada, and Europe sales. So our dealers in the market remain strategic partners and continue to play a vital role in our growth and market execution. So across all the markets, we are transitioning toward a dealership model to enhance the efficiency and scale This shift enables cost optimization for us while expanding our reach faster, particularly in a high potential region where demand pipeline remains strong. So, you know, while the recent headlines have prompted increased caution among some of the dealers, the sentiment remains quite constructive in Asian markets as we build brand momentum. We have proactively aligned supply with demand, accelerating shipments ahead of tariff implementation in the U.S. to ensure dual delivery while positioned through the summer season as well. So far, so good, and we managed the relationship well with the strategic partners. On your second question about the NHTSA routine investigation. As we have repeated many times, safety is an important aspect to us and we are cooperating with investigation by NHTSA as we have always been in the past. NHTSA generally does not close this type of investigation. They take no further action so long as BINFAST continues to honor its commitment in terms of the settlement. We continue cooperating with them. So far, no feedback for the past few months.

Thank you, Madam Thuy. We have the next question from the floor. What is the current status and projected plans for the USA manufacturing plant in North Carolina?

Thank you. So the U.S. remains one of our key markets, and we are committed to it for the long term. This is reflected in the fact that we have made no changes to our plan to have a North Carolina facility by 2028. We will continue monitoring the macroeconomics and geopolitical developments and revise our plan if needed. With the current market backdrop has also provided us with an appropriate window to adjust our execution focus. So we are also focused on fostering dealer performance and also expanding our dealer pipeline across the US. We thank our dealers for their cooperation and support and continue to have meaningful dialogue as we work together through the macro uncertainty. We really thank them for that.

Thank you, Madam Thuy. We have the next question from the floor. How is the expansion into Indonesia and the Philippines progressing?

Very well for both markets. Actually, I'm very, very pleased with the progress in both markets. For Indonesia, we started delivering VF3, VF5 and VFE34. We deliver about 3,000 VFE34 for GSM and about 500 vehicles for B2C customers in the market. Indonesia is the first VinFast overseas market outside of Vietnam where we implement the whole full green mobility of the system which means the GSM for the green taxi and V green for charging station. We launched GSM into Qatar last year and we we started expanding the VGreen charging network in Indonesia. Our dealership network consisted of 22 showrooms as of March 31, 2025, and we are on track with our target to have about 80 showrooms by the end of the year as we continue expanding our relationship with the dealers. About Philippines, we have introduced five models in the Philippines, with the VF6 being the latest one to be introduced. We also started expanding our dealership network and service center. We have six showrooms by the end of March and aim to have 50 showrooms by the end of the year. And VGreen, the charging station network, is already present in the Philippines. and we expect to see a GSM taxi in the Philippines soon as well.

Thank you, Madam Thuy. We have our next question. It's about tariff. What is your view on the potential impact of the new U.S. tariff on consumer car spending, both in Vietnam and in your key international markets? How is VinFast Preparing to respond for each market and what forms of government support are you expecting?

The government support in Vietnam or Okay Okay, being in Vietnam is from the analysts in Vietnam Okay, so I guess the tariff reciprocal tariff is the most popular keyword these days I think we We are closely monitoring and believe that at this stage, it remains premature to determine the final trajectory of the tariff as further developments and influencing factors are yet to unfold. We have proactively brought inventory of model year 25 vehicles to North America, which are affected by the new tariffs, and we have sufficient inventory in the interim. In 2024, the U.S. accounted for only 4% of total deliveries. And so we believe that the impact of the U.S. tariffs on automotive, I mean, we impacted only by automotive tariffs for now, not the reciprocal one. So we expect that the impact of the U.S. automotive tariffs on us is less severe compared to other OEMs. It's heavily reliant on the U.S. market. Our 2025 guidance announced in February already took into account potential political and economic uncertainties in the US. And it is important to highlight that majority of our growth in 2025 is expected to be from non-US market. We don't expect government support in Vietnam, even though I think in Vietnam we do have some waiver of some registration fee, but we don't expect, at least it's not in our projection, to have any government support in any meaningful way.

Thank you, Madam Thuy. We have the next question from the line. In the past, Vinifaz has talked about battery leasing as a unique differentiator of your market entry. Can you explain the rationale to discontinue this offering?

OK, I talked about it a little bit in my earlier speech. So battery leasing played a vital early role in the early days of EV adoption, as it really had narrowed the price gap between internal combustion engine vehicles and EVs. But as the consumer familiarity with EVs grow, battery leasing as a percentage of sales has dropped for us from 80% at the beginning to about 30%, below 30% recently. So it's just... is the right time for us to drop the battery leasing. And to ease the transition, we extended free charging benefits to the customer. So six months for EV owners and one year for e-scooter owners through 2027.

Thank you, Madam Thuy. We have the last question from the line. Can you remind us what are VinFast's key priorities for 2025 and how that aligns with your go-to-market strategy? And what are you most excited about for VinFast over the next 24 months?

Thank you. So the priorities for us in 2025, first of all, solidifying the leadership position in Vietnam. and continuing to build brand awareness and strengthening performance and presence in new markets. Secondly, to employ enhanced CapEx manufacturing to support business growth. We're opening three more factories this year. And then finally, driving product innovation through segmentation and again, focus on cost optimization. So our go-to-market strategy is built around three pillars of products, manufacturing capacity, and market reach. And these are all aligned with our 2025 priorities and long-term goals. Well, what exciting development at VinFast on engineering fund. We will be launching new vehicle platforms this year. to simplify and increase platform commonalities across the models. So this will in turn lead to more cost savings, and we are also working hard on new technologies and will share more details with you later. So all in all, the path ahead of us is very clear. I'm very excited about the future of FinFAST.

Thank you, Madam Tui. I think we're coming up to the one hour mark, and thank you everyone again for joining us today. If you need any further clarification, please let us know by sending an email to ir at winfastauto.com. Take care and goodbye. Thank you.

This concludes today's conference call. Thank you for participating. You may now disconnect.