Vietnam's first local car manufacturer, Vinfast, announced that it had recorded a net loss of $712 million in the first quarter of the year despite higher deliveries.

The electric vehicle company in the communist country is seeking to compete with global giants such as Tesla, but is struggling to break into the international market.

The company said it delivered 36,330 electric vehicles in the first three months of the year, an increase of 296% year-on-year.

Total revenue amounted to $656.5 million, up nearly 150% compared to the same period in 2024, AFP reported.

Vinfast Chairman Tui Le said the increase in deliveries was “an encouraging start to 2025 amid ongoing global uncertainty.”

Last year, the company's net loss was over $3 billion, despite a nearly threefold increase in deliveries of its cars.

Global trade has been disrupted by tariffs imposed in April by US President Donald Trump.

Last week, Hanoi said it was making progress in negotiations with Washington to avert Trump's threat to impose 46% tariffs on export-dependent Vietnam.

VinFast's parent company, Vingroup, is extremely influential in Vietnam, with business interests ranging from healthcare to real estate and from education to technology. | BGNES