Viet Reader.


Premier Newspaper for Vietnamese Worldwide

VinFast's Total Assets Smaller than Vingroup, Vinhomes but Equity Value Surpasses, Only Second to Vietcombank

According to the latest financial statements, although VinFast's total assets are smaller than other major Vietnamese groups such as Vingroup, Vinhomes, Hoa Phat and Masan, its equity value surpasses and is only second to Vietcombank in Vietnam.

As of December 31st, 2023, VinFast reported total assets of VND 130,900 billion, a decrease of 15% compared to the beginning of the year. In comparison with other listed companies on the Vietnamese stock exchange (excluding financial institutions such as banks, insurance companies, securities companies), VinFast's assets rank 6th, after the top 5 companies including Vingroup, Vinhomes, Novaland, Hoa Phat and Masan Group. 

Currently, the two other members of the "Vin Family" are leading the market in terms of total asset holdings. Specifically, Vingroup is the company with the largest assets of nearly VND 669,000 billion and Vinhomes has assets of over VND 447,000 billion.

However, VinFast's equity value "surpasses significantly" compared to the above companies. VinFast's stock price (ticker: VFS) is currently around VND 5.3 USD/share, equivalent to about VND 130,000/share. Thus, VinFast's market capitalization is approximately VND 290,000 billion. Even when compared to banks, VinFast's market capitalization in Vietnam only trails behind Vietcombank. Banks like VPBank, BIDV, Vietinbank... undoubtedly have "superior" assets than the electric vehicle manufacturer but their market values are not as large.

In terms of VinFast's asset structure, over half of long-term fixed assets include factories, machinery and equipment worth VND 67,916 billion. Inventory levels occupy the second largest position, reaching VND 28,662 billion, up VND 7,000 billion from the beginning of the year. The company's capital is mainly financed by loans.

For the full year 2023, the group reported revenue of VND 28,596 billion (approximately USD 1.2 billion), up 91% year-on-year. However, the company recorded a gross loss of over VND 57,175 billion (about USD 2.3 billion) for the year. In 2023, VinFast delivered a total of 34,855 electric vehicles, up 48% year-on-year, and sold an additional 72,468 electric motorbikes.

Ms. Nguyen Thi Lan Anh, CFO of VinFast, affirmed: "In Q4/2023, VinFast recorded higher revenue growth and significantly improved profit margins. We will continue to focus on improving investment efficiency and strengthening the balance sheet through further optimizing production costs, BOM costs and global Capex. This will be a key driver for VinFast to expand into potential markets like Indonesia and India, thereby driving sustainable sales growth."

For the 2024 fiscal year, VinFast aims to balance revenue growth and cost optimization based on optimized production and material costs, while strategically investing in high-potential markets in the region. To boost electric vehicle sales, VinFast will expand distribution channels by leveraging partner networks and experience in each market. Success in key markets like the US will consolidate the company's competitive advantages in other markets to increase scale, especially untapped high-potential Asian markets. In addition, VinFast targets delivering 100,000 vehicles in 2024 as its distribution network expands further.

About author
You should write because you love the shape of stories and sentences and the creation of different words on a page.
View all posts
More on this story