VinFast Auto Ltd. Q1 FY2026 earnings call

### Strategic Direction & Leadership Transition - Pham Nat Kwan An assumed the role of Chairman of the Board, building on the prior leadership's foundation of successful global market entry. - The company's long-term strategy focuses on transitioning to a more asset-light operating model, prioritizing operational execution, customer experience, and innovation in software-defined mobility and autonomous technologies.

### Market & Demand Trends - Higher volatile oil prices and energy security concerns in oil-import-dependent Asian economies have driven accelerated government policy support for EV adoption, creating a lasting structural shift that boosts demand across VinFast's core markets. - In Vietnam, VinFast set a new single-day EV sales record of 3,520 units on March 28, 2026, and helped drive national EV adoption to ~40% of total automotive sales.

### Key Strategic Initiatives - A 5-year strategic partnership with GSM was established, under which VinFast will supply GSM with ~1 million EVs and 4 million E2Ws from 2026 to 2030. The partnership provides long-term order book visibility, supports scaling, acts as a free brand building platform, and accelerates EV adoption. - VinFast announced a proposed spin-off of its Vietnam manufacturing assets into a new independent entity. After separation, VinFast will retain core high-value activities (R&D, branding, sales, after-sales) and enter a long-term manufacturing agreement to ensure production continuity. The sale of VinFast's interest in the manufacturing entity is expected to generate ~$530 million in proceeds, subject to customary closing conditions. - VinFast signed an MOU with Autobrains and NVIDIA to power its future Level 4 Robotaxi platform using NVIDIA's Hyperion architecture, advancing the company's long-term autonomy ambition. - International expansion progress: 50 dealerships opened in India as of Q1 2026, on track to double the footprint by end-2026, with an E2W business launch planned for later in 2026; B2B/fleet demand is a key growth driver in emerging Southeast Asian markets, supported by customer programs like battery subscriptions and residual value guarantees.

### Financial Performance - Reported Q1 2026 gross margin was -73.6%, impacted by a $192 million (20% of revenue) revenue deduction for extended free charging benefits, plus 12% of revenue from revenue deferrals and 14% from NRV adjustments. Excluding these items, adjusted gross margin improved to -22.5% from -28.1% YoY. - R&D expenses were $101 million (+25.8% YoY, -12.4% QoQ), focused on new vehicle models and the EE 2.0 platform. SG&A expenses were $101 million (-32.3% YoY, -73.9% QoQ) due to no impairment charges in the quarter. - As of March 31, 2026, VinFast had total available liquidity of $2.6 billion.

VinFast's overall Q1 2026 total revenue grew 41.7% year-over-year. Automotive segment: 58,577 units delivered, +61% YoY; 8% of deliveries were international, 87% were to non-related parties. In Vietnam, automotive sales grew 36% YoY to ~162,000 units, with EV deliveries up 61% YoY, and VinFast held the #1 OEM position in Vietnam from September 2024 through Q1 2026. Electric two-wheeler (E2W) segment: 143,000 units delivered, +219% YoY, with the Evo and Felis models accounting for 81% of deliveries. In Vietnam, E2W market share reached a record 17% in March 2026, making VinFast the #2 player in the market. International segment: In Q1 2026, VinFast ranked #1 BEV brand in the Philippines, #4 BEV brand in India, and #8 BEV brand in Indonesia, with core growth coming from Southeast Asia and India.

- The 2026 full-year E2W sales target is at least 2.5x 2025 full-year sales, and Q1 2026 results put the company on track to meet this target (22% of the annual target achieved in the seasonally slow first quarter). - Total 2026 capital expenditure and R&D spend is expected to be $300 million to $400 million per quarter; the Vietnam manufacturing spin-off is expected to reduce annual CapEx by ~$400 million, with an additional ~$500 million CapEx reduction possible for international opportunities. - VinFast maintains its long-term target of reaching break-even in the Vietnamese market, driven by increasing sales volume and reduced production costs from new vehicle platforms. - Average selling prices (ASP) are expected to see a 10-15% reduction in 2026 due to the higher volume of sales to GSM, but ASP dilution will fade quickly in subsequent years as GSM's proportional contribution decreases and B2C demand grows. - Level 2 Plus and Level 2 Plus Plus ADAS features are targeted for launch in late 2026 to early 2027, with Level 4 Robotaxi pilot testing planned for 2027 in Ho Chi Minh City, Vietnam. - The Vietnam manufacturing spin-off transaction is targeted to close by the third quarter of 2026.

- There is active litigation related to the planned North Carolina, US factory; management declined to comment on specifics, leaving unresolved financial and operational exposure for the US market expansion project. - Extended free charging programs created material negative pressure on Q1 2026 GAAP gross margin, which could impact near-term profitability metrics. - Autonomous vehicle and Robotaxi rollout is dependent on local regulatory approval and homologation in each target market, creating uncertainty around international commercialization timelines. - Increasing competition in the Vietnamese E2W market, including new competitor charging infrastructure partnerships, could pressure market share gains.

Q: What is VinFast's most important long-term competitive advantage as it scales across Asia? A: Management states VinFast's core advantage is its integrated broader green mobility ecosystem, built in partnership with GSM and Big Green. Over the next 3-5 years, the company will focus on three key priorities: continuing to offer competitive EV/E2W products, expanding dealership, after-sales and charging networks, and continued investment in software, smart services and autonomous driving technology.

Q: Why is VinFast spinning off its Vietnam manufacturing factories, and why do this now? A: The spin-off is a strategic move to transition VinFast to a more capital-efficient, asset-light operating model. After the transaction, the mature, capital-intensive Vietnamese manufacturing operations will be owned and operated by an independent third party, while VinFast retains focus on core higher-value competencies including R&D, technology, branding, sales and after-sales globally. VinFast will retain quality control via the long-term manufacturing contract and supplier selection rights.

Q: What is the timeline and strategic role of autonomous technology for VinFast? A: VinFast follows a phased autonomy strategy: current production vehicles have Level 2+ ADAS, with Level 2++ coming to next-generation vehicles. Pilot testing of Level 4 autonomous Robotaxis is planned for 2027 in a Ho Chi Minh City smart city project, with commercial service intended to be operated by GSM or sold to external third parties. After Vietnam pilots, commercial Robotaxi service will roll out gradually to other international markets where VinFast operates, pending local regulatory approval.

Q: How will greater sales volume to GSM impact VinFast's average selling prices? A: Higher GSM sales volume, which includes volume-based discounts, will reduce 2026 ASP by approximately 10% to 15%. This dilution is only expected for the first 1-2 years of the partnership, after which GSM's proportional contribution to total sales will shrink, and ASP will normalize quickly.

Q: What is the impact of the extended free charging program on future gross margins? A: The full $192 million impact from the extended program, which covers benefits for all vehicles sold through Q1 2026, was recognized entirely in Q1 2026 per US GAAP rules. The impact of the program on gross margin will be significantly less material for all remaining quarters of 2026.