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Good day, and thank you for standing by. Welcome to VinFast's first quarter 2026 financial results and Q and A webcast. 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 one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. If you wish to ask a question via the webcast, please use the Q and A box available on the webcast link anytime during the conference. Please be advised that today's conference is being recorded. I'd like to hand the conference over to your first speaker today, Ms. Amandae Baey, Vice President of Investor Relations. Please go ahead, ma'am.

Thank you, operator, and good morning, everyone. Welcome to VinFast's first quarter 2026 earnings call. Joining me today are Chairman of the Board, Mr. Pham Nhat Quan Anh, Deputy CEO of Investments, Ms. Anne Lan Anh Nguyen, and our CFO, Ms. Lan Anh Nguyen. Before we begin this call, please note today's call will include forward-looking statements under U.S. Federal Securities Law. These statements reflect our current views on future events, financial operational performance, and other matters that involve risk and uncertainties. These may cause actual results to differ materially. Please refer to our most recent filings with the SEC for a discussion of these risk factors. We will also reference certain non-GAAP financial measures and a reconciliation of these measures to GAAP figures, along with an explanation are included in our presentation issued earlier today.

With that, I would like to invite Mr. Quan Anh to begin with the management remarks.

Thank you, Amandae. I'm honored to assume the role of Chairman of the Board of VinFast at an important stage in the company's development. I would also like to express my sincere appreciation to Madam Thủy Lê for her leadership and contributions over the past several years. Under her leadership, VinFast successfully entered international markets and established the foundation for its global expansion, helping bring the VinFast brand to customers around the world. Today, VinFast enters its next phase with a stronger foundation, a growing global ecosystem, and a clear long-term strategic direction. As the company continues its tradition towards a more asset-light operating model, we remain focused on strengthening operational execution, enhancing customer experience, and advancing innovation in an era increasingly defined by software-defined mobility and autonomous technologies.

Together with our leadership team, employees, partners, dealers, and customers, we remain committed to building a globally competitive mobility company positioned for sustainable long-term growth. I look forward to working closely with all stakeholders as VinFast continues its next chapter of development and global expansion. Turning to recent developments in the global energy markets, higher oil prices continue to reinforce a long-term case for electrification, particularly across import-dependent economies. In Asia, where many markets rely heavily on oil shipments through critical routes such as the Strait of Hormuz, recent price volatility has had an immediate impact. This has accelerated government policy support aimed at reducing fuel dependence and strengthening energy security. As a result, Southeast Asia and other emerging markets are increasingly leading global EV adoption trends. This structural shift is translating into tangible demand across VinFast core markets and aligned closely with the green mobility ecosystem.

In Vietnam, VinFast recorded a new daily sales high of 3,520 EVs on March 28th, alongside a record month for the E2W orders. To support and scale this momentum, VinFast has taken additional steps to strengthen its long-term operating model. These include a new strategic partnership with GSM and the spin-off of our Vietnam manufacturing assets. Together, the initiatives are expected to enhance financing flexibility and support the company's transition to a more capital-light business model. I will now pass it over to Anne to recap the key highlights of the quarter. Thank you.

Thank you, Quan Anh. Q1 2026 deliveries were 58,577 units, an increase of 61% year-over-year, despite being the seasonally slowest quarter. International deliveries accounted for 8%, while non-related parties accounted for 87% of deliveries. Q1 2026 electric two-wheeler deliveries also rose 219% year-over-year to approximately 143,000 units, with the Evo and Feliz models making up 81% of deliveries. In March alone, VinFast received more than 135,000 e-scooter orders and shipped over 93,000 e-scooters to dealers in Vietnam. In Vietnam, total automotive sales grew 36% year-over-year in the quarter to 162,000 units approximately. VinFast continued to outperform the industry, with EV deliveries increasing 61% year-over-year as we maintained our position as the number one OEM for every month since September 2024 to date.

While we have been at the forefront of driving Vietnam's EV adoption rate to approximately 40%, we continue to see significant runway for future growth. In March, the government issued a directive calling for 50% of city public transportation to transition to EVs, alongside increased use of biofuels as part of a broader effort to reduce reliance on energy imports. Regarding Vietnam's two-wheeler market, according to our internal research, our overall two-wheel registered volume increase of 26% year-on-year in Q1 of 2026. VinFast has rapidly emerged as one of the country's leading brands. In March, we crossed the 10% threshold market share for the first time, reaching a record 17% market share of the total two-wheel industry and becoming the number two player in the market, only after Honda. Turning to international markets, Southeast Asia and India continue to be a core growth engine for VinFast.

Across Indonesia and the Philippines, there are clear signs that EV adoption is moving beyond the early stage and VinFast strategy is gaining traction. In Indonesia, the BEV segment has outperformed the broader automotive market, with rising consumer interest since February, supported by higher fuel prices. In the Philippines, momentum has been particularly strong, with March sales reaching a new monthly high for VinFast. Together, these trends signify an inflection point for EV adoption in the region. A key driver of this growth is increasing B2B demand, particularly from fleet operators. Systemic programs such as battery subscriptions and residual value guarantees are reinforcing VinFast total cost of ownership advantage and supporting adoption at scale. VinFast continues to strengthen our position through new product launches and expanded distribution. In India, VinFast opened its 50th dealership during the quarter and remains on track to double its footprint by year-end.

In less than a year, VinFast has launched three products, received multiple industry awards, and we expect to launch our two-wheel business in India later this year. At the end of the first quarter, VinFast was ranked the number one BEV brand in the Philippines, the number four brand in India, and the number eight brand in Indonesia. I would like to address our new strategic partnership with GSM. The partnership plays an important role in accelerating EV adoption in Vietnam as well as internationally for VinFast, while serving as an effective platform for brand building and free marketing. Under the new agreement, VinFast will supply GSM with approximately 1 million electric vehicles and 4 million electric scooters over the five-year period of 2026-2030. GSM is eligible for incentives and commercial support, reflecting a combination of base discounts, volume-based incentives, and go-to-market supports.

From an operational perspective, this partnership provides visibility into our order book, and in turn, this demand visibility is valuable during our scaling phase, especially in international markets, and supports eventual cost optimization. We are also pleased to share another milestone in our long-term autonomy ambition. VinFast signed an MOU with Autobrains, our level 4 autonomy partner, and NVIDIA, who will be a key supplier for our level 4 autonomy initiatives. The agreement, unveiled on the 1st of June this year at GPU Technology Conference, Taipei, confirms that VinFast's future Robotaxi platform will be powered by NVIDIA's Hyperion architecture, reinforcing VinFast's commitment to leveraging best-in-class technologies to support the development of advanced autonomous solutions. We'll be sharing further updates on our autonomous vehicle roadmap in due course. Now, turning to the recently announced spinoff of our Vietnam manufacturing assets.

Recently, VinFast has taken a deliberate and phased transformation of its corporate structure with the objective of building a leaner organization that enhances operational efficiency and supports scalable long-term growth. In May of this year, VinFast announced a proposed reorganization under which certain assets and operations of VinFast Trading and Production, or VFTP, will be separated into a newly formed entity, VinFast Vietnam JSC, VFVN. VFVN is expected to hold VinFast R&D, intellectual property, sales, and after-sales businesses, while VFTP will continue operating the manufacturing business in Vietnam. Following the separation, VinFast will transfer its interest in VFTP to a group of purchasers led by Future Investment Research and Development Joint Stock Company for approximately $530 million. The transaction has been approved by shareholders and remains subject to customary closing conditions. The reorganization will not affect the company's international operations, including its manufacturing facilities in Indonesia and India.

Parties to the transaction will enter into a long-term manufacturing agreement to ensure continuity across production, supply chain, and customer deliveries. Importantly, the transaction does not change VinFast's commitment to manufacturing scale, product quality, or customer service. Strategically, the new structure also enables VinFast to concentrate resources on higher value activities, including R&D, design, software, and go-to-market capabilities, while improving capital allocation and management focus on innovation and growth. Now, I would like to turn it over to Lan Anh to cover the financial results and outlook. Lan Anh, please.

Thank you, Anne. Revenue for the first quarter of 2026 grew 41.7% year-over-year, a strong start despite the Lunar New Year seasonality. Q1 2026 gross margin was -73.6%, compared to -46.4% in Q4 2025, and -35.2% in the same period last year. The pressure on this quarter's gross margin was primarily driven by $192 million revenue deduction, representing approximately 20% of revenue related to the extension and amendment of certain free charging programs across our markets. Under these programs, eligible VinFast vehicles sold through 10 February 2029 will receive free charging benefits for up to three years. Accordingly, $192 million was recognized for all vehicles sold through 31st of March 2026, as this is the value of the extended benefits.

The extended charging program was introduced to accelerate EV adoption, enhance customer affordability and total cost of ownership, and support early-stage market development, particularly in Vietnam and other Asian markets. In addition, similar with the prior quarter's, gross margin was impacted by revenue deferral on certain vehicles sales and NRV adjustments, which represented approximately 12% and 14% of revenue respectively. Excluding these items, we continue to see a clear improvement in the underlying operating trajectory of the business. On this adjusted basis, gross margin would have improved to -22.5% in Q1 2026, compared with -47.2% in Q4 2025, and -28.1% in Q1 2025. Moving to the operating expenses. R&D expenses were $101 million, decreasing 12.4% quarter-over-quarter, and increased by 25.8% year-over-year.

The increase in R&D costs compared to the first quarter of 2025 was attributable to R&D costs for the Green models, Lac Hong, and models that VinFast plans to launch on its new vehicle platforms and EE 2.0 architecture in 2026. The decrease in R&D costs compared to the fourth quarter of 2025 was attributable to the completion of certain projects, including the M Green model in the first quarter of 2025. R&D as a percentage of revenue was 11%, as compared to the 12.4% in the first quarter of 2025. SG&A expenses were $101 million, decreasing 73.9% quarter-over-quarter, and 32.3% year-over-year. The decrease compared to the first quarter of 2025 and the fourth quarter of 2025 was primarily attributable to no impairment charges being required in the first quarter of 2026, whereas impairment charges was recognized in the prior periods.

SG&A as a percentage of revenue was 11%, compared to the 23% in the first quarter of 2025. Adjusted EBITDA for the first quarter was negative $783 million, a decrease of 29.9% sequentially. On a year-over-year basis, Adjusted EBITDA loss was adversely impacted because of the impact from the extended free charging program. Excluding the impact mainly from extended free charging, revenue deferrals on certain vehicle sales, and NRV, Adjusted EBITDA margin would have been -32%, compared to the -46.2% in the same period last year.

Net loss margin for the quarter was -121.6%, as compared to the -95.8% in Q4 2025, and -108.5% in the same period last year. Excluding the impact mainly from extended free charging, revenue deferrals on certain three vehicle sales and NRV, net loss margin was -62.2%, improved by 21.4% as compared to Q4 2025, and by 36.1% as compared to the same period last year. Finally, EPS for the first quarter of 2026 was -$0.48, representing a 25% improvement compared to -$0.64 in the fourth quarter of 2025. Excluding the items discussed above, EPS for the first quarter of 2026 would have been -$0.3, representing a 42% improvement year-over-year. CapEx for the quarter was $198 million, mainly for the expansion of our manufacturing facilities.

As of 31st March 2026, VinFast has total available liquidity of up to $2.6 billion, which consisted of cash and cash equivalent of $219.3 million, an undrawn credit line from Vingroup of up to $607.3 million, remaining grants from Mr. Pham Nhat Vuong of up to $677.2 million, an available commitment of $969 million under a standby equity subscription agreement, and $125.4 million the company expects to receive from the share transfer after retiring the promissory note that was previously issued to VinFast Trading and Production JSC. Finally, I'd like to conclude by emphasizing that our priorities remain centered on disciplined financial management, operational excellence, and the efficient deployment of capital. We continue to focus on improving productivity, optimizing our cost base, and strengthening the financial resilience of the business.

These efforts are intended to support sustainable growth while maintaining the flexibility needed to execute our long-term strategic objectives. Operator, let's open for Q and A.

Thank you. As a reminder, to ask a question, please 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. To ask a question via the webcast, please type it into the box and click submit. I'll now pass it over to Amandae for questions coming through the webcast.

Thank you, operator. The first question from the webcast is for Mr. Quan Anh. As VinFast is scaling rapidly across Asia, what do you see as the company's most important competitive advantages in the long run? Mr. Quan Anh, please.

Thanks, Amandae. That's a really good question. I believe VinFast's most important competitive advantage is that we are not just building an EV company in isolation. We are building a broader green mobility ecosystem in partnership with GSM and Green. Over the next three to five years, our focus is on three key points. First and foremost, we will continue to offer products that are well-suited to local customers in each respective market. Second, we will keep expanding our dealerships as well as our after-sales network, including the charging network, which is very important. Last but not least, we will continue investing in technologies, including software, smart services, and autonomous driving capabilities. Thank you.

Thank you, Mr. Quan Anh. We have another question on the line regarding our India business. Can you provide an update on your India expansion plans and key priorities over the next two years? Mr. Quan Anh, would you like to take this, please?

Thank you for your question. India is a very important market for us. VinFast business performance in India has been very positive. In fact, in quarter one, 2026, VinFast has ranked top four BEV in terms of sales numbers in India. Our goal is to become one of the top players in the market and establish ourselves as a meaningful market participant. We have a clear strategy to grow in India. In the market with multiple competition, customers ultimately stand to benefit the most through the greater choice, stronger competition, as well as continuous innovation. Thank you.

The next question on the line is regarding the recent decision for VinFast to spin out its Vietnam factories, and why now. Anne, would you take this question, please?

Thanks, Amandae. Well, the transaction is basically a strategic move to restructure VinFast's operating model towards a more capital efficient and sustainable future. Following the transaction, VinFast capital-intensive manufacturing activities in Vietnam, which are already well established in operation and optimized in terms of capacity, will be spun off and become an independent third-party-owned and operated manufacturing platform. It is also important to note that firstly, VinFast retain and focus on the development of our brand through core competencies, including research, development, technology, branding, sales, and aftersales, in Vietnam as well as globally. We'll also have control and oversight over the manufacturing outputs of our partner through the manufacturing contract. We will also have control over certain rights over supplier selection. We continue to believe that the quality of the products we produce from our partner will be up to our standard. Thank you.

Thank you, Anne. Operator, let's open for live questions.

Certainly. We will now take our first phone question from the line of Andres Sheppard from Cantor Fitzgerald. Please go ahead, Andres, your line is open.

Hey, guys. This is Anan for Andres. Congrats on the quarter. Thanks for taking our questions. I was wondering, firstly, if we could get maybe a little bit more color on the North Carolina factory. What's the potential financial and operational exposure from the complaint, and what's the latest on the progress on construction and SOP on that facility? Thank you.

Hey, Anan. At this juncture, we are not going to comment on any North Carolina specifics because this is an active litigation. What we can say is that VinFast remains committed to the U.S. market.

Thank you. Maybe as a follow-up, given the free charging revenue deduction, I was wondering maybe when does this program roll off as a meaningful drag, and how do you expect that to impact your GAAP gross margin trajectory in the future?

Yeah. You can see from our result of the Q1, one of the main reasons for the decreasing of the gross margin is that we have the, like I said, extended free charging program that we implemented from 9th of February 2026. It's worth $192 million. Because for the U.S. GAAP standards, this support is recorded as a deemed capital contribution, and it accounted for a reduction in revenue, representing approximately 20% of revenue, so accumulated recognizing in the first quarter of 2026. However, this is a very short-term impact. In the long term, VinFast still aim to break even in the Vietnamese market by 2027. Based on the two main driver, we increase sales volume and reduce production costs through vehicle line developed in the new technology platform. We still recognize the support from this free charging program. Thank you.

Got you. Thanks so much for the color. Appreciate it. Congrats again on the quarter. I'll pass it on.

Yeah.

Thank you. We will now proceed to take our next question from the line of James McCurry from Chardan Capital Markets. Please go ahead, James. Your line is open.

Yes. Thank you. Good morning. Can you talk a little bit about average selling prices for the quarter as well as your expectations for the year? Specifically how sales to GSM would impact that, as well as the increased share coming from non-Vietnamese markets, how that would impact average selling prices for the year and for the quarter?

Hi. Thank you. This is Anne. I'll take this question. First of all, I think we expect GSM's sales for the first year or so to be approximately, in terms of two wheels, roughly about 300,000 vehicles. Subsequently, collectively between 26 to 30, up to about nearly 4 million vehicles. It will ramp up. Similarly for cars as well, I think we expect the volumes to start trending up. Historically, GSM has accounted for about approximately 15% of VinFast total sale. For the first year or so when this program is launched, because GSM also takes up the vehicle that it owns in international markets, and it's expanding very rapidly. Right now, GSM is present in five countries.

It launched in India just this weekend, and it's going to launch in another five countries by the end of the year, increasing visibility for both its own brand and VinFast cars. We believe that the initial phases of GSM owning its own vehicles to standardize customer service as well as brand perception is good, again, for the image of the VinFast vehicle as a whole. In the subsequent years, more cars will run on GSM's platform on the asset-light drivers and partners model. Again, this is basically expected to increase demand for VinFast vehicles, both from a B2B, B2C demand perspective. Does that answer your question?

Yeah, partially. When you're looking at GSM vehicle sales, not two-wheeled, but the vehicle sales, for this year, I think you're saying that you expect it to be higher than that historical 15% of total sales. Did I hear you say that? Is that what you're saying?

Yes, that's correct, Jim.

Okay. The impact on average selling prices?

Sorry, can you repeat the question, the impact on?

Yeah. It's my understanding that since GSM sales are in greater volumes, that they do get some price flexibility. My question is the impact to average selling prices with a greater percentage of sales going to GSM.

In the earlier years, ASP will basically be reduced by approximately, say, 10%-15% because of the higher contribution from GSM. That's only expected to be for the first year or so. In subsequent years, the percentage of GSM's contribution will be a lot smaller. Right now, I think we're taking a conservative approach in not assuming a knock-on impact of more customer demand for cars in international markets driven by GSM. Our assumptions only look at GSM's additional volume as a base case. Right? Already we're seeing ASP normalizing in the subsequent years. Of course, I think with this knock-on effect, the dilution in ASP by GSM should be reduced even faster.

Okay. Very good. Thank you so much. That's it for me.

Thank you. We will now take our next question from the line of Jesse Silverson from BTIG. Please ask your question, Jesse, your line is open.

Everyone, thanks for taking my question. I'm curious about autonomy. The Autobrains and NVIDIA DRIVE MOU, it points to some level 4 Robotaxi capabilities. How does autonomy fit into the longer-term strategy? Is it a product line, a fleet, or a GSM enabler, or primarily just a technology and brand signal at this stage? Thanks.

Thanks. First of all, I think VinFast has consistently outlined a phased autonomy strategy, rather than claiming full and immediate autonomy. Our current vehicles are grounded in level 2 plus ADAS systems with future upgrade planned already for level 2 plus plus in the next generation of VinFast vehicles. Concurrently, we also will be pilot-testing autonomous driven vehicles in one of our smart city projects in Ho Chi Minh City next year, 2027. That is really a pathway towards eventual fully Robotaxi fleet that will be either operated by GSM or also sold to external parties if there are demands.

Great. Is there anything specific when it comes to the rollout internationally? Can you explain what the strategy is going to be to bring this technology to more countries than just Vietnam after that?

Certainly. The idea is to offer Robotaxis in international markets where VinFast is present and where there will be demand. Similarly, for GSM, the idea is also to gradually replace a manned fleet with one that's contributed by Robotaxis to the extent that the respective local regulations, as well as the readiness in terms of homologation, is done in each of the markets. Given our home ground and the GSM itself also has a market dominant market share in Vietnam, it is natural that Robotaxis will be pilot tested as well as offered here as a commercial service first. The idea, of course, is to roll out in international markets in gradual phases. We expect to be able to share more about our Robotaxi plans in the upcoming quarters. If this quarter it's limited, it's because we are planning to say more in the subsequent quarters.

Great. Thanks for the detail.

Thank you. There are no further questions from the phone lines at this time. I'll hand back to Amandae for webcast questions.

Thank you, operator. We'll continue taking questions from the webcast. The next question is for Lan Anh. Regarding the Vietnam manufacturing spinoff, could you please provide revised guidance for the expected total cash needs, CapEx, and R&D in 2026?

Thank you. VMS transition to an asset-light model, like Anne just mentioned. Meaning that reduce the capital raising needs, especially like CapEx, improve free cash flow, and improve our profitability. For the post spinoff, we expect that the CapEx, like when we reduce around $400 million for the Vietnam factories and another part of the $500 million to consider the international opportunities. In 2026, we expect a total CapEx spend R&D of $300 million-$400 million per quarter. For forecast 2027, currently, we do not disclose this forecast yet, and it's going to be updated later. Thank you.

Thank you, Lan Anh. As a follow-up question to that, will the Vietnam manufacturing spinoff result in any one-time gain recognition in VinFast P&L? If so, could you provide the potential amount?

Actually, the company is currently evaluating the accounting and financial implications of the Vietnam manufacturing spinoff, including the appropriate accounting treatment under applicable accounting standards. We expect that we're going to have the gain recognition in the P&L. Further the updates will be provided once the evaluation has been completed and the accounting treatment has been finalized. Thank you.

Thanks, Lan Anh. The next question is regarding the U.S. Considering that there has not been any new deliveries recently, and with the current lawsuit in North Carolina, how do you intend on addressing this to your U.S. customers? I'll take this question. We continue to deliver vehicles in the U.S. as we still have inventory available for sale. While we have not imported new vehicle shipments recently, our existing inventory continues to support customer demand, and we remain focused on serving our U.S. customers through our sales and service network. The next question is regarding, again, the North America business and any update on the product release, such as the VF 7, the VF 8, and the expansion of service network. I'll take this question also. As we've said previously, the U.S. remains an important market, and we continue to invest in our commercial presence.

VinFast has been selling vehicles in the U.S., and we plan to bring the next generation of vehicles to the U.S. market. We are still targeting to expand our dealer network across states like California, Florida, Texas, North Carolina, and so on. Although we do expect that North America, together with Europe, will represent a modest share of total volumes this year, we are still very much focused on evaluating and bringing new products to the U.S. market. Okay. The next question is regarding the planned VinFast reorganization. When is VinFast going to transfer its interest in VFTP to new shareholders? Anne, would you like to take this question, please?

Sure. We obtained shareholders' approval on the 27th of May, and we target to complete the transaction by the third quarter of 2026 upon completion of customary closing conditions.

Thank you, Anne. The next question is regarding the free charging program. Could you please elaborate on how you expect the extension and amendments of the free charging platform to play out for the remainder of the year? Lan Anh, would you like to take this, please?

The current free charging program has been extended through February 2029, providing customers with a very relatively long-term benefit. As we described in our financial impact for 2026, the Q1 impact included the adjustment related not only to the vehicles sold during the quarter, but also to the vehicles delivered in the prior periods. You can see that the impact for the remainder of the year is expected to be significantly less material.

Thank you, Lan Anh. The next question is regarding two-wheelers. Are you seeing the rising threat to VinFast from partnership of Yadea and Petrolimex Vietnam to expand charging network for two-wheelers in Vietnam? What are VinFast's competitive advantages now, given that charging infrastructure is no longer exclusive? Anne, could you take this, please?

I think first of all, it is important to highlight that we have done quite well in the first quarter for two-wheel sales. Versus our target and considering the fact that the first quarter is the slowest quarter in the entire year for us, and our target is to be at least 2.5 times the two-wheel sales of last year. We've met 22% of this target so far, and that has us well on track to meeting the target by the end of the year. We currently have number two market share in Vietnam, with 17% in the first quarter, and only after Honda.

This achievement is not just about charging, but it's also about product development, continued innovation, and the most recent one that's so well received is about the battery swapping program, which offers customers a fundamentally different proposition, convenience, and the ability to very quickly move around within the city without having to stop. Through this new battery swapping program, we currently operate 7,000 battery swapping stations across Vietnam. We also offer both a franchise as well as an owned model. We are able to reach as many users of VinFast EV vehicles as possible. I suppose last but not least, compared with the partnerships that you've mentioned, VinFast has a unique benefit as well from the combined ecosystem of charging through V-Green, ride-hailing from GSM, and the OEM VinFast.

GSM here is also, as mentioned earlier, increasing both visibility, actual demand, as well as through GSM's data gathering and intelligence, we're able to have a lot of insight into the customer's user behavior, which is very helpful in our R&D as well.

Thank you, Anne. The next question: how will pricing be determined between VinFast and the new manufacturing entity, transparency being particularly important given the parties? Lan Anh, would you like to take this?

For the price payable by VFVN for each vehicle manufactured and supplied by VFTP shall be determined on the cost-plus basis and shall present a target margin of approximately 5% of vehicle cost. This pricing is benchmarking with the market and determined on an arm's length basis. For the clarify, post the transaction because for VFTP going to be sold to Dzung Anh. We expect that for the post-transaction, VFVN and VFTP are not related parties. Thank you.

Thank you, Lan Anh. The next question. Excited to learn more about the new Autobrains NVIDIA partnership. What is the projected rollout timeline of that work to current and future owner vehicles through OTA or technician updates?

Thank you. Firstly, we are targeting to launch VinFast-developed Level 2+ and Level 2++ Navigate on Pilot capabilities in the late 2026 and early 2027. The partnership with Autobrains and NVIDIA is one among a few that have recently been announced or worked on by VinFast. We expect a combination of both in-house developed as well as externally partnered initiatives will allow us to access advanced AI, compute, and autonomous driving expertise, which eventually will help accelerate development and validation of the overall L4 roadmap that VinFast has embarked itself on.

Thank you, Anne. Operator, just checking if there's any live questions.

There are no questions in line. You may continue, Amandae.

Thank you. We have the last question from the webcast. This is regarding the accelerated shift in EV adoption in Southeast Asia. Do you think this shift is because of higher oil prices, is temporary or a lasting structural shift? Quan Anh, would you like to take this, please?

Thank you for your question. Indeed, this trend is gaining strong momentum across Asia, as reflected in robust business growth in the recent years. It is particularly pronounced in Vietnam, where VinFast is accounting for approximately 40% of the total automotive sales. In Philippines, VinFast has risen to become the number one BEV player. In Indonesia, India, VinFast is number eight, number four respectively for the quarter one 2026. Looking ahead, I am confident in our ability to build on this momentum and further accelerate our growth trajectory. Thank you.

Thank you, Quan Anh. Operator, if there is no further questions on the line, we will conclude the call.

Thank you for your participation in today's conference. You may now disconnect your line.

Good day, and thank you for standing by. Welcome to the VinFast Q4 2025 financial results and Q&A webcast. 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 one one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star one one again. If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link any time during the conference. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Amandae Baey, Head of Investor Relations. Please go ahead.

Thank you, operator, and good morning, everyone. Welcome to VinFast quarterly earnings call. Joining me today are Chairwoman of the Board, Madam Thuy Le, Deputy CEO of Investments, Ms. Anne Pham, and our CFO, Ms. Lana Nguyen. Before we begin this call, please note today's call will include forward-looking statements under U.S. Federal Securities law. These statements reflect our current views on future events, financial operational performance, and other matters that involve risk and uncertainties. These may cause actual results to differ materially. Please refer to our most recent filings with the SEC for a discussion of these risk factors. We will also reference certain Non-GAAP financial measures and a reconciliation of these measures to GAAP figures along with an explanation are included in our presentation issued earlier today. With that, I would like to invite Madam Thuy to begin the management remarks.

Hello, everyone. It's great to be with you again. 2025 was another landmark year for VinFast, but more importantly, it was a year of disciplined investment behind our core mission, making electric mobility accessible to everyone. Fourth quarter of 2025 was our strongest quarter to date across several key financial metrics. Every strategic decision we make, including investing in technology, industrial capabilities, and global expansion, is anchored to that objective. Let me briefly reflect on our evolution. From 2017 to 2023, we established our brand and industrial foundation with the firm belief that electrification is the future of mobility. In 2024, we earned the trust of customers in our home market, Vietnam, and became the number one mobility brand in the country by vehicle sales, a position that we continue to maintain to date.

During 2025, we rolled out a comprehensive product portfolio to serve diverse mobility use cases, laid the foundation for a green mobility ecosystem in international markets, and shared plan about our next generation of vehicles that built on a new platform and new EE architecture. Across the industry, there is a clear shift as electric mobility companies move toward AI-driven software-defined vehicles. VinFast has been working on this since day one with our R&D philosophy centered around a vertically integrated software-defined EV platform. With over 400,000 cumulative cars delivered and more than four years of real-world driving data accumulated, our engineers are able to design ADAS and software road maps with the customers in mind. For 2026, our strategic investment focus on scale and unit cost optimization, which are the primary levels in our path to profitability.

This will be supported by overseas capacity expansion, the commercialization of the next-gen vehicles, and the integration of more AI across our vehicles and factories to deliver smart cars and more efficient production. With that, I would like to frame the three key points that you should take away from this call. First, VinFast is more than just an EV manufacturer. We are a vertically integrated software-defined EV platform with smart manufacturing to deliver scalable electric mobility solutions. Second, we are expanding our capacity to enter international markets in the coming years. We are deliberate in making this investment now as it provides us with flexibility to enter new markets quickly. Finally, scale matters at VinFast. With scale comes further operational efficiencies. We deliver 196,919 EVs for the full year.

This exceeded our guidance to at least doubling the numbers of EVs delivered in 2024. In Q4 alone, we deliver 86,557 EVs. That was a new quarterly record for the company. Our two-wheeler segment also reached a new high. Full year deliveries grew 5.7x to 406,496 units. Looking ahead, our 2026 guidance is targeting at least 300,000 EV deliveries. This is supported by introducing new models in our international markets, the build-out of our dealer network across Asia, Europe, and North America, and lastly, the continued expansion in international markets. Following the strong momentum of VinFast e-scooter segment achieved in 2025, we expect two-wheeler deliveries to be at least 2.5x last year volume for 2026.

This growth will be driven by VinFast e-scooter expansion into Asian markets, the rollout of V-GREEN battery swapping network for e-scooters, and our focused positioning in the largest product segments. Turning to our new markets and manufacturing operations. Starting with Vietnam, where VinFast has maintained the number one OEM position and taken market share from other OEMs. We ended 2025 with an estimated 36% market share compared to 22% in 2024. VF3 and VF5 accounted for 51% of domestic volume. We are also pleased to see the increased contribution from VF6 and Limo Green. On the two-wheeler segment, we ended the year as number one electric scooter player in Vietnam. For the first time since we started selling internationally, overseas market accounted for 18% of our fourth quarter delivery. For the full year 2025, international markets contributed 11% of our deliveries.

Our disciplined approach to overseas expansion is also reflected in our ranking. In particular, in India, we made steady progress in Vahan registration amongst BEV brands, ranking number eight in October, number seven in November, and number four in December. We have maintained our position since then to date. In Indonesia, we ended 2025 as number three BEV brand according to GAIKINDO, and as the number two BEV brand in the Philippines, according to CAMPI. Product expansion has further broadened VinFast market reach. We introduced Green, our commercial-focused product line, and Lac Hong, our ultra-luxury brand. VinFast now has three distinct brands catering to different customer segments. In the fourth quarter, our commercial line, Green, saw strong traction from fleet and B2B customers and accounted for nearly half of total deliveries.

In 2025, approximately 27% of our deliveries were to related parties, primarily the EV ride-hailing platform, GSM, are broadly stable year-over-year, with a higher share of approximately 33% in the fourth quarter as GSM rapidly scale its fleet network in Indonesia and the Philippines as part of its Southeast Asia expansion. Manufacturing utilization and operational efficiency continue to improve with the Hai Phong plant rolling out its 200,000 vehicle of the year and producing nearly 26,000 EVs in December alone. Last year, we inaugurated our manufacturing facility in Ha Tinh, Vietnam. Our first overseas manufacturing facility was opened in Tamil Nadu, India in August, and in December, we opened our second factory overseas in Subang, Indonesia. Now turning to our priorities for 2026. Let's start with manufacturing.

VinFast today operates four manufacturing facilities globally with combined annual capacity of 600,000 EVs and 500,000 e-scooters. Looking ahead, we will continue to strengthen this foundation by expanding production capacity for EVs and e-scooters in Vietnam while evaluating further development phases in India and Indonesia to position these facilities as future export hubs. We also expect to resume construction of our North Carolina factory in 2026 with a plan to SOP in 2028. We will provide further details in the coming months. It is important to note that VinFast has embedded smart manufacturing processes across all our facilities to enable scalable electric mobility solutions and will provide further updates on this area shortly. On the product front, VinFast has completed the strategic launch of its EV portfolio under three distinct brands, each with a clear market focus and identity.

The VinFast brand, comprising VinFast core passenger EV lineup from VF3 to VF9. The Green brand of commercial EVs for fleet use, including Limo, Herio, Nerio, and Minio Green. Lastly, the ultra-luxury Lac Hong series. As part of this repositioning, we are introducing two seven-seater MPV models, the Limo Green and the VF MPV7, to address different customer segments with plans to launch both across key Asian markets. Additionally, the next generation of VF6 and VF7 is expected to SOP in the second half 2026. These four models are designed to deliver a lower BOM cost by reducing complexity and number of components through our new platform and next generation EE architecture. I'm also pleased to share that VinFast is developing several range extender EV models, beginning with VF 8 REEV. Introducing range extender vehicles allow us to address a broader segment of electrification market.

We view range extender technology as a practical interim step in the transition from internal combustion engine to fully battery electric vehicles, particularly in markets where charging infrastructure is still developing. We will provide additional updates on this program in the coming quarters. In our core Asian markets, we will continue expanding our dealer network to support long-term growth. We plan to double our dealer footprint in India and partner with large dealership group in Indonesia and the Philippines. This expansion will move in parallel with GSM international growth as we continue building out the broader green mobility ecosystem. At the same time, we are expanding our two-wheeler strategy across Asia, with plans to introduce our e-scooter business in five markets, including Thailand, Malaysia, and the other three existing Asian markets, while GSM is also exploring opportunities to enter the U.S. and European markets.

For Europe, we plan to introduce the next generation of B SUV, the VF six model. For North America markets, we plan to bring the VF 7, a C-segment electric SUV, and to also launch our e-bus business later this year. Now I will turn it over to Anne, who will take you through the latest on VinFast technology platform.

Thank you, Madam Thuy. VinFast is more than an EV manufacturer. Our mission is to make electric mobility accessible to everyone, which directly shapes how we allocate capital and make strategic investments. We are deliberately investing in owning more of our technology stack so that we can deliver more compelling features at a lower cost over time. At Mobility Day last November, we shared our autonomy roadmap for level 2+ and level 2++ towards level four, with a demonstration of a self-driving Robo-Car in partnership with Autobrains at Vinhomes Ocean Park, a project in Vietnam. A leading AI mobility company based in Israel, Autobrains has been working with us for a number of years. VinFast have taken a capital efficient approach with an in-house ADAS research institute while working with strategic technology partners for level four.

We also plan to expand our trials of Robocar to larger cities and international markets. We are also pleased to share that we've entered into a collaboration with Tensor, a pioneering AI company developing personally owned level four autonomous Robocars company based in California. Under this partnership, VinFast will serve as the manufacturing and industrialization partner for Tensor's Robocar program. Fully functional prototypes of the program have already been tested by Tensor across multiple regions, and the program is currently in the pre-production phase and is being advanced towards commercialization. This collaboration is compelling for both a commercial and financial standpoint, while reinforcing VinFast's strategic role in the next generation of mobility solutions. In parallel, we are also in active discussions with a number of technology and mobility companies exploring robotaxi development. We look forward to sharing further updates as these discussions progress in the coming quarters.

Internally, we continue to make steady progress in owning more of our core technology stack and expanding our in-house software capabilities. Earlier this year, we introduced a suite of subscription packages in Vietnam that include proprietary remote control functions and smart features developed internally at VinFast and across the broader Vingroup ecosystem. At the same time, we are advancing our transition to EE 2.0 as part of a structural cost initiative this year. This shift is expected to drive meaningful reductions in our BOM cost structure through ECU consolidation, simplified wiring harness design, and greater component commonality across models. Our new EE 2.0 demonstrates how our in-house software capabilities are doing more than enhancing the next generation of VinFast vehicles.

We're beginning to see interest from external parties in this technology as a standalone solution, which provides early validation of our R&D capabilities and could represent a potential new revenue stream over the longer term. In the near term, we plan to expand these subscription offerings to additional markets alongside the rollout of localized voice assistance strategies across key Asian markets. We look forward to sharing more details as these initiatives continue to develop. Finally, turning to manufacturing. As Madam Thuy shared earlier, VinFast has embedded smart manufacturing processes across all of its facilities. This is a key pillar of our vertically integrated software-defined EV platform and central to our long-term profitability. Within the Vingroup ecosystem, VinFast works very closely with a sister company called VinRobotics to accelerate the development of advanced robotics and intelligent automation across its operations.

VinRobotics focuses on two core segments, industrial humanoid robots developed in-house, and a scalable non-humanoid physical AI platform that combines robotics hardware with intelligent software. By integrating VinRobotics proprietary mechanical systems, intelligent controls, and AI-driven computer vision into VinFast manufacturing operations, the partnership aims to enhance productivity, improve quality, and reduce operating costs while advancing the broader goal of building the smart factory of the future. VinFast also expects to be the manufacturing partner to VinRobotics, along with two other robotics companies within the Vingroup ecosystem, namely VinMotion and VinDynamics. Now, taking a step back, I'd like to highlight the in-house R&D capabilities at VinFast and the broader Vingroup technology ecosystem that supports VinFast long-term innovation roadmap. At the core of these efforts are our in-house ADAS and battery research institutes, which are focused on developing next-generation technologies that will be integrated into future VinFast vehicles.

Within the Vingroup ecosystem, a number of specialized technology companies are developing capabilities that can be leveraged across multiple businesses. What initially began with VinFast at the center of a green mobility ecosystem, spanning EVs, charging infrastructure through VGreen, and electric mobility services through GSM, is now evolving into a broader platform of advanced technologies. Across this ecosystem, teams are developing core capabilities ranging from software platforms and cybersecurity to robotics and automation. A notable example is our collaboration with VinRobotics, which I have highlighted earlier. As Vingroup continues to incubate new technology platforms, VinFast expects to deepen collaboration across the ecosystem and provide further updates on these initiatives in the coming quarters. Now, I'll hand it over to Lan Anh to discuss our financial results for the fourth quarter and full year of 2025. Lan Anh, please.

Thank you, Anh. Our 2025 result reflects a focus on accelerating revenue growth while improving operating efficiency over time. By exceeding our 2025 guidance and operating at roughly two-thirds of our flagship factory's capacity during December, we have demonstrated our ability to scale in a disciplined manner. At the same time, the sales policies and promotional initiatives introduced to strengthen brand awareness in our key markets are starting to gain traction. Concurrently, our ongoing cost optimization programs are beginning to deliver tangible results, and we are seeing early signs of operating leverage emerge in the business. Fourth quarter of 2025 reflected the strongest financial performance we have delivered to date, with several key metrics reaching new levels as we begin to see early benefits at scale.

As Madam Thuy and Anh highlighted, strengthening VinFast competitiveness requires deliberate strategic investments that are essential to improving efficiency, enhancing cost control, and positioning the company for the more sustainable margin profile over the long term. Now, let me walk you through our results in more detail. Revenue for the fourth quarter of 2025 was $1.6 billion, up by 118% quarter-over-quarter and 139% year-over-year. Full-year revenue was $3.6 billion, increased by 105% year-over-year. Gross margin was -40% in Q4 2025, compared to -79% in Q4 2024. For the full year, gross margin improved to -43% compared to a -57% in 2024.

With full year revenue increased by 105% and fourth quarter revenue up 139% year-over-year, higher production volumes allowed us to better absorb a fixed manufacturing overhead and improve operating leverage. Recall that in fiscal year 2024, revenue was impacted by a one-time adjustment related to our free charging program. We applied the program retrospectively to all vehicles delivered through 31st of December, 2024, which resulted in revenue reduction recorded in that quarter. If we exclude the impact mostly due to the free charging program, vehicles sold for which revenue has been deferred, and NRV adjustment, we are seeing a clearer view of the underlying improvement in our operating performance. Excluding these items, gross margin for Q4 2025 would have been -28% compared to -26% in Q4 2024.

On a full-year basis, gross margin would have been -24% as compared to -32% in 2024. Moving to the operating expenses. R&D expenses were $114 million, increasing 7% quarter-over-quarter and 7% year-over-year. R&D spending in the quarter was primarily driven by continued investment in our next-generation vehicle platforms and core technology stack, particularly in ADAS L2+ development and our EE 2.0 architecture, as well as ongoing model refreshing programs across vehicles. R&D as a percentage of revenue was 7%, the lowest in the past 5 quarters, reflecting the benefits of scale. As revenue growth outpaced R&D spend, fixed R&D investment will leverage more efficiency across larger volumes, improving operating leverage while we continue to advance our core technology roadmap.

SG&A expense were $391 million, increasing 126% quarter-over-quarter and 50% year-over-year. The sequential increase was primarily driven by higher marketing expenses associated with the launch of new models across multiple markets. During the quarter, we also booked approximately $236 million impairment for our North Carolina factory. This impairment charge is a one-off expense and reflects management's decision to take a disciplined approach to accounting adjustment associated with changes in project timing and development assumptions. It does not represent a change in our long-term strategic commitment to the U.S. market. As Le Thi Thu Thuy mentioned earlier, we expect to resume construction in the North Carolina factory this year.

Excluding this one-off impairment charge, SG&A expenses as a percentage of revenue would have been 10% compared to 24% in Q3 2025 and 40% in the first quarter of 2024. This improvement reflects the benefits of scale and the cost optimization achieved through our transition to a dealer model. Adjusted EBITDA for the fourth quarter was -$1 billion, a 20% decline year-over-year. Adjusted EBITDA margin came in at -65% compared to -80% in Q3 2025 and -129% in the prior year period. Adjusted EBITDA for fiscal year 2025 came in at -66% compared to -103% in fiscal year 2024.

Excluding the impact mostly due to delayed revenue recognition, impairment charge relating to the U.S. factory, and adjusting for NRV, adjusted EBITDA margin would have been -37% in Q4 2025 compared to -36% in Q3 2025 and -52% in the same period last year. Net loss for the quarter was -$1.4 billion. Net loss margin for the quarter improved to -89% compared to -186% a year ago, an improvement of 96% year-over-year. Fiscal year 2025 net loss margin is -108% compared to -176% in fiscal year 2024, an improvement of 68% year-over-year.

Excluding the impact mostly due to delayed revenue recognition, impairment charges, which mostly related to changes in project timing of U.S. factory, and adjusting for NRV, net loss margin would have been -62% in Q4 2025 compared to -84% in Q3 2025 and -94% in the same period last year. Finally, EPS for the fourth quarter of 2025 was -$0.6, a decline of 15% year-over-year from the fourth quarter of 2024. Full year 2025 EPS was -$1.65 compared to full year 2024 EPS of -$1.32.

Excluding similar items, EPS for the fourth quarter of 2025 would have been $0.41, and full-year 2025, it would have been $1.25, a decline of 15% year-over-year. CapEx for the quarter was $304 million, an increase of 16% quarter-over-quarter and 25% year-over-year, driven by CapEx across our new overseas factories and expansion at our Vietnam facilities. Total CapEx for 2025 was $922 million. Finally, an update on our liquidity and previously announced grant and borrowings commitment in late 2024. As of December 31, 2025, VinFast's outstanding borrowings from Vingroup under this commitment was $413 million.

The company received a total $1.1 billion disbursement from our founder pursuant to the grant agreement. Our total liquidity as of 31st, December 2025 is $3.1 billion, which reflects cash, funding commitment from Vingroup and our founder and an ELOC facility. Turning to our 2026 outlook. As Madam Thuy noted earlier, scale will be the key driver of operational efficiency. This will be supported by our priorities of expanding manufacturing capacity, strengthening product competitiveness, and accelerating international expansion. We expect revenue growth in 2026 to be driven by a combination of higher volumes, modest improvement of ASP, and product mix evolution across markets. Operator, let's open for Q&A.

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. Please stand by while we compile the Q&A roster. We will take our first question, and the question comes from the line of Philippe Houchois from Jefferies. Please go ahead. Your line is open.

Operator, let's go to the next question.

Please stand by. Your question comes from the line of Jesse Sobelson from BTIG. Please go ahead. Your line is open. Jesse Sobelson, your line is open. Please ask your question. Jesse Sobelson, can you check you've not muted your line? We are unable to hear you.

Hey, operator. While we get the live questions, let's move on to the Webex questions. We've got a few of them.

Sure. Please go ahead.

All right. The first question we have is from Jesse, actually. There have been rumors you'll be interested in launching a hybrid vehicle. Can you confirm this is something you're interested in pursuing? And if so, how could it impact your future financial results? And, would you like to take this question?

Thank you, Amandae Baey. Certainly. Well, VF 8 REEV was planned for launch in Vietnam starting 2027, and with overseas rollout expected over time. The development basically leverages our existing BEV platforms and incremental R&D requirements will be fairly manageable. We also expect limited impact on broader R&D priorities for the next couple of years as we have very well planned out our R&D roadmap, our ADAS, as well as our EE architecture. REEV for us is viewed as a practical interim solution to expand EV accessibility and address a broader market segment as opposed to a material shift. Thank you.

Thank you, An. The next question is from Trang Ho of HSC. Congratulations on the quarter's results. Could you please elaborate on the drivers behind the narrowing of the gross profit loss and whether these improvements are sustainable in the coming quarters? Additionally, could you share the recent results or achievements in your key export markets and the company's plans for these markets going forward? Lana, would you like to take this?

Okay. For the narrowing of the gross profit loss, the improvement is mainly driven by BOM optimization and production scale, supplier pricing, localization and engineering optimization. We believe these drivers are sustainable. The largest reduction in BOM cost of VF 6, around 13%, and VF 7, around 23%, in BOM cost reduction. In 2026, we expect further improvements across multiple models, with around 20%-30% cost reduction, supported by our transition to next generation vehicle platforms in the following years.

We also expect more moderate around 5% annual BOM optimization. For the part of the international markets, we also saw a very strong ramp up in deliveries in Indonesia, the Philippines and India in Q4 2025, with the international deliveries accounting for about 17% of total deliveries. For India, we also India positioned as a strategic long-term growth market. For the other market like Indonesia and the Philippines that we leverage for the brand awareness with the cooperation with GSM for the brand awareness boost for the consumer, like a perspective.

We expect that we can boost our overseas sales in 2026 also. Thank you.

Thank you, Lanan. The next question we have is a macro question, so I think Madam Thuy would take this. With oil prices trending higher, do you expect that to influence EV adoption dynamics? And separately, could you comment on the current macro environment and how that could potentially affect VinFast operating outlook?

Thank you, Amanda. Well, I think everywhere in Vietnam as well, we immediately saw the impact of higher oil prices where people started switching to EVs or even for the ride hailing or taxi, we started seeing people choosing consciously our GSM platform versus the normal taxi. Higher oil prices reinforce the long-term EV value position as consumers focus more on total cost of ownership. Fuel prices may influence short-term sentiment, but structural EV adoption drivers remain affordability, product availability and charging infrastructure, which everything that we working to work to. Our strategy focus on improving cost competitiveness and expanding the product lineup to broaden EV accessibility. We monitor macro developments closely, especially now.

No material impact on operating outlook at this stage right now. Our expansion focus on markets where EV adoption remains early with strong long-term growth potential. Priority remains scaling production, improving cost efficiency, and executing the product roadmap. The industry commentary suggests about $4 per gallon gasoline could accelerate mass EV adoption. In some of the states in the U.S. right now, we are exceeding that level as well. Thank you.

Thank you, Madam Thuy. The next question from the Webex is regarding our North Carolina factory. It's good to hear an update about the North Carolina factory. Could you elaborate on your decision to proceed with a U.S. manufacturing presence when EV demand is expected to be slower? And could you also share some more color on the impairment charge that you took?

Like, for the last years, right? We've been saying that we are committed to the U.S. market, and U.S. is an important market to us and we still commit to that. U.S. still remains an important strategic market for us. U.S. manufacturing base provides flexibility as the market conditions and regulations evolve. North Carolina factory construction expected to resume this year. We have been working in the background to work that, and the SOP is targeted for 2028. Out of prudence, we recorded a VND 236 million impairment in Q4 2025. This was a one-off charge reflecting the revised project timing. However, we expect that the We will reverse this impairment in the future as the factory construction we start again. Again, there's no change to long-term commitment to the U.S. market.

Thank you, Madam Thuy. The next question is regarding our ADAS strategy. How much of the cost reduction will come from simplifying the hardware stack or tailoring features to different markets? Anne, would you like to take that question?

Thanks, Amanda. Well, I think, first of all, the next generation ADAS stack will launch with refreshes in the VF 6, VF 7. SOP is started to be from the second half of 2026 onwards. It will be a combination of both, simplifying the hardware stack as well as tailoring features to different markets that will really be the anchors of our strategy. The new architecture basically will use more integrated computing and simplified hardware stack. At the same time, we're also increasing the component of in-house development in order to reduce reliance on third parties and being able to tailor the features to different markets. Both of these features, as I've mentioned, will help us lower the cost.

I hope that answers the question.

Thank you, Ann. The next question is regarding the company's CapEx plans. Can you please share what the company's CapEx plans are for 2026? Lan Lan, would you like to take this?

In 2026, most of our CapEx is still going into building out the core manufacturing footprint. Roughly $400 million for domestic and around $600 million for international factories. Additional CapEx like for machinery and equipment. In 2026, 2027, our CapEx needs a continuation of our intention to scale our manufacturing globally as we position the overseas factory as export hubs. We expect to incur CapEx for phase II of Indonesia and India factories and CapEx for phase I of U.S. factory, as Madam Thuy just mentioned.

That's kind of action to account for the future business plans to introduce e-scooter and e-buses also in those markets. Thank you.

Thank you, Lan Lan. The next question is regarding the VF7. Can you walk us through the VF7's current status for North America, specifically where it stands in the regulatory approval process, expected timeline for deliveries, and whether production will come out of the India or Vietnam facility? Separately, any update on dealership and service center expansion in the region? Madam Thuy, please.

We are preparing to bring the VF7 to the U.S. before the end of the year. I think we're pretty much done with all the regulatory approval process, obligations and all the approvals. I think the target is to start the production by the end of next month. With the plan to bring the VF7 soon after. This is going to be a midsize crossover SUV in that segment. We focus on the customer experience, the feature competitiveness and ownership value rather than other features.

This is gonna be a very good addition to the market and will help elevate the VF8 as we bring more VF8 to the market. Regarding the dealers, the dealership network and the service center. I mean, with all the uncertainties in the U.S. market with the EVs in the U.S. and the automotive tariffs, right? Until we have the factory open in 2028, we will take a very disciplined approach with expanding our dealership network.

I think this year we're looking to add more like two more dealers in California where we sell where EVs sell the most and we maintain the existing dealership network. I think our focus is trying to make sure that the dealers will be profitable and retain the dealers that were willing to to invest in the brand and continue to stay with us for for long run. In terms of repair repair the service shop our strategy is to expand also the third party service network. Last year, I think in California alone, we added about 55 service shop.

This year we're adding a few more, but what is more important is to improve the quality of the service network and gradually really improve the quality of those service network rather than focusing on the quantity. Thank you.

Thank you, Madam Thuy. Operator, can we check for live questions?

Thank you. As a reminder, if you wish to ask a question, please press star one one on your telephone and wait for your name to be announced. We will take our next question. Your question comes from the line of James McIlree from Chardan Capital Markets. Please go ahead. Your line is open.

Yes. Thank you. You've talked about the gross margin improvements and the BOM cost improvements that you're looking for this year. When do you think that you can achieve a positive gross margin? Is that something that could happen at the end of this year, or is that something that's more likely to occur in 2027?

Hi, Jim. Thank you for that question. Lanan, over to you.

Yeah. For profitability framework, especially mention about gross margin, we see that for the framework, we're consistent, we see many scaling EV manufacturers like we focus on the execution milestones such as margin improvement. For VinFast, we have the two primary levers, like the first one for the high-volume deliveries spread fixed costs, of course manufacturing, R&D and SG&A, improving operating leverage. Also for the BOM costs, yes, we have the next generation platforms designed with the optimized architecture. The next generation vehicles also expected to deliver around 30%-40% lower of the bill of materials, I mean, the BOM costs versus earlier models.

Because as these models scale in production, because we have the production expansion, the unit economics are expected to improve meaningfully. In addition that for platform transition and volume run and continue for the cost discipline expected to make the path to profitability increasingly like a visible over the medium term. A lot of things to do to boost for the margin improvement for both Vietnam and also for the overseas. We expect that to like the path to profitability increasingly visible over the like in the medium term. Thanks.

Thanks, Lanan. Operator, are there any more live questions? Or Jim, do you have a follow-up question?

Yes, I was curious if you could share with us what your expected cash usage will be this year?

Yes. For the CapEx for this year, we expect that around $1.6 billion for cash spending CapEx and for R&D with the next generation models. We expect that we spend around $1.4 billion for R&D. Yeah.

There seems to be no further questions. Oh, excuse me. Please stand by. We do have a question in the queue. Your question comes from the line of Jesse Sobelson from BTIG. Please go ahead. Your line is open. Jesse Sobelson, your line is open. Please ask your question. There is no response, and we have no further questions in the queue.

Thanks, operator. Actually, Jesse had sent in his question on the Webex, so I'm gonna read it out. This is regarding our guidance of 300,000 global EV deliveries in 2026. From a manufacturing standpoint, are you already capable of producing at that annualized run rate today? And what are the key milestones, either utilization, supply chain, labor or localization that needs to happen to support that volume? There's also been discussions of competitors extending their manufacturing footprints into Southeast Asia and namely Vietnam. So how do you want investors to think about VinFast's core differentiation, whether it's product, pricing, ecosystem or after-sales, and where do you believe you have the most defensible advantage over the next 12-18 months? Thank you for that question, Jesse. That's very comprehensive. Madam Thuy, over to you.

Yeah. Absolutely, we're capable of manufacturing and delivering that volume of at least 300,000 vehicles in 2026. Regarding the at least 300,000 delivery target for 2026, the growth will mainly be driven by Vietnam and our core Asian markets. From a manufacturing perspective, we already have sufficient capacity. I think with, as I mentioned in my speech, with facilities in Hai Phong, Ha Tinh, and India, our combined capacity exceeds 600,000 vehicles per year already, so that will support our growth target. As an example, our flagship factory in Hai Phong has ramped up to above 70% capacity at the end of 2025 and still have headroom to produce more.

From the supply chain perspective, we have developed a global supplier network of 1,700 partners and about 800 direct suppliers that are, you know, ready to supply to us. Well, I think, on your second question, beyond pricing, we differentiate through our EV ecosystem, including the rollout of the V-GREEN charging infrastructure, and the expansion of GSM ride-hailing fleet, which help build the long-term consumer confidence. Over time, our scale increases and our ecosystem matures. We expect, you know, promotions to normalize with differentiation increasingly driven by great value to money, the vehicle products, and enhanced ownership experience and after-sales service, and, of course, the best-in-class warranty coverage.

I think those are the differentiating points between us and other competitors that might want to enter Southeast Asia and Vietnam in particular. Thank you.

Thank you, Madam Thuy. Our next question is regarding robotics manufacturing. Can you give us a sense of the timeline for when VinFast would begin manufacturing robots for the robotics companies within the Vingroup ecosystem? And would that require additional CapEx or changes to your existing product, production lines? Anne, would you like to take this, please?

Sure. Thanks, Amanda. Basically, I think humanoid robot trials are already planned for the second half of 2026 across two of our factory plants in Vietnam for certain operational tasks. We'll continue to conduct ongoing evaluation of robotics integration within our smart manufacturing roadmap and making sure that the humanoid or the robot arms visual AI programs work seamlessly with what we currently have, which is already fairly highly automated. At the same time, we also do not want you know, our testing to disrupt the core EV production because the plant in Haiphong is basically operating at full capacity, and the one in Ha Tinh is also ramping up very fast. I'm very excited, and we hope to share further updates in the coming quarters. Thank you.

Thank you, Anne. Our next question is from Harry of Edison Group. Could you possibly give a little bit more color on the geographic breakdown of the e-scooter growth you are expecting this year? Will the majority of the growth be driven by an increased number of scooters sold in Vietnam, or do you expect it to be driven by international markets? And a follow-up question is, with this growth, should we expect e-scooters to have a meaningful margin impact moving forward? Madam Thuy?

Last year experienced a very strong growth in e-scooter for us, and that was all in Vietnam. This year, we expect to expand to five international markets in Asia as well. As you know, you go to Asia, you know, you see mostly a lot of two-wheeled vehicles in Asia. There's a very strong market just beyond Vietnam. We expect most of the growth for 2026 will still come from Vietnam for various reasons driven by, like, the policy tailwinds in Vietnam, including the expected restrictions on gasoline motorbikes in Hanoi and Ho Chi Minh City, the two big cities in Vietnam, in the middle of 2026.

We focus on the largest segment of two wheels, the student and daily commuters. The adoption is accelerating as well. I mentioned the international expansion before. We will expand into India, Indonesia, Malaysia, Thailand, and the Philippines. Another interesting fact about our e-scooter is the battery swapping rollout by V-GREEN that reduces the charging barriers, especially for people that use e-scooter or use two-wheeled vehicles for, you know, food deliveries or for delivery purposes. As of January 2026, there are only 4,500 battery swapping stations installed across Vietnam, supported by retail and logistics partnerships.

Well, as the two-wheeler segment scales, we expect it to become an increasingly meaningful contributor to both revenues and profitability for VinFast, and it will be a great support for our four-wheels business. Thank you.

Thank you, Madam Thuy. We are just at about time, so we're gonna end with the last question from the Webex regarding our guidance. Can you provide a breakdown or give us a sense of which markets or models do you expect to contribute the most to your target of at least 300,000 EVs this year?

Well, I think, well, even for 2026, the primary growth expected still from Vietnam and the core Asian markets. There will be new models launches in India, Indonesia and the Philippines, and the expansion of GSM operations in international market will also drive the growth as well. We are building the dealership network across Vietnam and Asia. Just those are the factors that would help drive the EV guidance to at least 300,000 vehicles this year.

Thank you, Madam Thuy. Operator, that concludes the earnings call.

Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.