VinFast Auto Ltd. Q3 FY2024 Earnings Call

Good day and thank you for standing by. Welcome to VinFast Auto Limited Third Quarter 2024 Earnings Conference Call. At this time all participants are in a listen-only mode. After the speakers' presentation there will be a question-and-answer session. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Nhi Nguyen. Please go ahead.

Thank you, operator, and good morning, everyone. This is Nhi Nguyen from VinFast Investor Relations. Welcome to our third quarter earnings conference call. Joining me today are Chairwoman of the Board, Madame Thuy Le; and our CFO, Ms. Lan Anh Nguyen. During the call, we will discuss our third quarter performance, business update and present our outlook for the remainder of 2024. After management remarks, we will have 30 minutes for Q&A. We will also reference a slide deck today, which is accessible on the IR website. Before I turn the call over to Madame Thuy Le, 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, macroeconomics, industry trends, company initiatives, and other future events. These statements are based on the predictions and expectations as of today. Actual events or results may differ due to a number of risks and uncertainties. We refer you to the cautionary language and the risk factors in our most recent filings with the U.S. Securities and Exchange Commission. In addition, management will refer to non-GAAP financial 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 PR that we issued this morning. You can also find it on our presentation. With that, I would like to invite Madame Thuy Le to start with management remarks.

Thank you, Nhi, and welcome, everyone. It's great to speak with you again and to share the exciting developments at VinFast. Q3 2024 was underpinned by a robust September as we recorded our highest monthly delivery ever in our home market. For the first time, Vietnam's OEM, which has been around for only seven years, and only pivoted to a pure EV strategy about two years ago, has outperformed international competitors to become the market leader. This marks a historic milestone for Vietnam's automotive industry as it now enters a very short list of countries in which a domestic pure EV player leads the sales chart. It also demonstrates that maintaining flexibility and simply responding to a near-term market opportunity is an effective strategy during the early stages of EV transition. Meanwhile, the calibrations that we made to our international strategy have started to pay off as well. September was also the best month in the history of the VinFast North American market, thanks to our growing dealer network and continuous improvement of our EVs. With nine-month 2024 accounting for 55% of the full year target, we expect to finish 2024 on a strong note and reiterate our 80,000 vehicle delivery target. As always, VinFast remains committed to balancing growth and profitability while being nimble to respond to market opportunities. Now let me discuss our Q3 deliveries in more details. During the quarter, we delivered 21,912 EVs, representing a 66% quarter-over-quarter and 115% year-over-year increase. E-scooter delivery in Q3 were 18,894, representing a 44% sequential increase and a 33% year-on-year decrease, if you count the last delivery of GSM last year or a 118% increase excluding delivery of GSM. We also observed Q3 2024 B2C electric car sales grew at a robust 163% quarter-over-quarter and 497% year-over-year. Now let's turn to the drivers of each of our markets. Let's start with Vietnam. With the right product and sales strategy, VinFast successfully set a trend and created a new demand in our domestic markets where retail sales grew 159% quarter-over-quarter and 504% year-over-year in Q3 2024, thanks to our VF 3 and VF 5. For the first time, Vietnam's customers realized that they could have decent, cool looking, strong built EVs at a very reasonable price. VF 3 deliveries began during the third quarter and rapidly gained popularity in Vietnam for its unique personality and practical features, including a 10-inch entertainment screen, spacious storage, and backup sensors, combined with low running cost and a sturdy build, customers see it as an ideal fun-to-drive urban car, and the excitement continues to build as eager buyers await their turn to receive their VF 3. VF 5, appealing to both personal and business users, is also helping us drive the green mobility shift beyond being a top choice for retail customers. A unique trend is the growing adoption of EVs by traditional taxi operators. This shift is driven by the economic benefits of reduced maintenance and stable electricity costs compared to the volatile gasoline prices. Transitioning to EVs also allows many transportation businesses to lower expenses and improve profitability. We view this as a major step forward in developing sustainable transportation options in Vietnam. We believe our home market holds significant potential beyond the success that you already have seen. And we have observed many positive trends that bring us confidence in its long-term EV adoption. According to the International Organization of Motor Vehicle Manufacturer, car ownership in Vietnam remains low with only 55 cars for every 1,000 people as compared to 82 in Indonesia. At the same time, 35 million people are expected to enter Vietnam's middle class by 2030, significantly boosting the number of consumers with the purchasing power to consider EVs. During the same period, the Vietnam Automobile Manufacturers Association, predicts EV ownership in the country will rise to 1 million units. Our home winning strategy in Vietnam gives us a solid foundation for our overseas expansion and allows us to develop our strategic expertise to drive long-term excellence. Let's turn now to our international markets, where we have quickly adopted our strategy and utilized our unique position to capitalize on favorable changes in our target markets. During Q3 2024, approximately 9% of deliveries were to international markets versus a year ago when international markets only accounted for 3% of delivery. In North America, we are now managing some of our own showrooms and have pursued a dealership model as well with 42 showrooms. This has enabled us to gather valuable feedback and market our products to a wider base of customers. Our adaptive enhancement sales offer an industry-leading 10-year warranty on owning a VinFast electric car, presenting a more practical and accessible option for those seeking good value solutions. In Canada, we observed three consecutive months of growth in July, August, and September, with sales up 70% quarter-over-quarter. With increasingly positive responses from this market, we have decided to officially add the stunning seven-passenger three-row electric vehicle VF 9 recently on November 19, and we are planning to introduce VF 6 and VF 7 at the right time next year. Many local dealers have indicated that 2025 presents a promising opportunity to launch our new beautifully designed and high-performance vehicles. This should position us to compete more effectively with our industry peers in North America and address the gap in the market for reliable, reasonably priced EVs. In late October, we launched our brand in the Middle East and opened our first UAE dealership in Downtown Dubai, offering a full range of electric vehicles with an integrated service workshop for complete customer support. Let's move back to the market closer to us. I'm excited to talk about the new kids on the block. In Q3, Indonesia became official with the first deliveries of VF e34 to customers. VF 5 has also been delivered recently, while VF 3 is planned for next year. VF 5 and VF 3 are our responses to the local market appetite for affordable products which accounted for about two-thirds of the overall market vehicles in 2023. As of October 31, we had successfully opened 17 showrooms with numerous plans in progress to further expand our brand presence and enhance options for retail customers. Dealers who visited our plant and test drove our cars have shown pleasant surprises and positivity about our product design and quality. We've been working closely with our prestigious dealership group and other partners to provide customers with attractive purchase options. Strong after-sales support is key to keeping customers satisfied. We have established a third-party partnership to provide 24/7 hotlines for roadside assistance to our customers and set up a parts distribution center warehouse under DSV, a logistics solutions provider. Indonesia is an intriguingly unique market for us. It is a market with large potential and many EV players. We have identified two key pillars for our Indonesia strategy. First, it's battery leasing. As anticipated, customer response to battery leasing has mirrored what we observed in Vietnam when we first launched EVs. This one-of-a-kind offering in Indonesia will remain a key differentiator for our tailor go-to-market strategy, driving a growing wave of early adopters. The second pillar to our Indonesia strategy is our ecosystem. GSM is set to launch in Indonesia soon with anticipated impact expected to be substantial, very much like in Vietnam. Potential customers will have a unique opportunity to experience our products in real life before making their purchase decision. This not only enhances VinFast brand and product presence but also integrates the VinFast experience seamlessly into daily life. Additionally, the CKD factory is progressing as planned, and our commitment to this market remains strong and unchanged. A quick update on the Philippines. Drawing from success in our home market and similar to the approach in Indonesia, we understand that building a comprehensive ecosystem is key to earning customer loyalty. We have set up a parts supply warehouse, established logistics partnerships, and ensured 24/7 roadside assistance support for our customers in the Philippines. We launched the VF 3 first in the Philippines to leverage our existing product market fit, given the demand for an urban mobility offering that is suitable for Manila traffic, and currently have three models open for reservation in the market. As of October 31, we have established eight showrooms in the Philippines, with three located in Manila and other regions. Before we move on to our outlook, let me provide some updates on our global showroom and charging network. As of October 31, 2024, we had 173 showrooms, up from 130 in June as we expanded our dealership network. In Vietnam, we completed our full transition into a local dealer network with all 91 stores operated by dealers. Meanwhile, about 50% of our 82 international showrooms are dealer-owned. This approach lowers CapEx and optimizes expansion costs by utilizing dealer-owned locations, allowing us to focus on supporting our dealers with marketing activities and leveraging their local expertise to accelerate sales. The impact is already reflected in our financials, which our CFO will share later. Meanwhile, VinFast customers have access to charging points that remain extremely comprehensive in the industry. By the end of Q3, our customers had access to over 1 million charge points globally, either through a VinFast owned station in Vietnam or through third-party options internationally. In North America, VinFast customers can access approximately 140,000 smart, public, and third-party networks, all easily locatable through the VinFast app. The VinFast app aggregates and simplifies the public charging user experience, allowing users to plan travel routes and easily pay as you go for charging within the app instead of having to use multiple apps and digital wallets for different third-party providers. Looking ahead, there's plenty to be excited about at VinFast. Earlier this month, we announced restructuring and financial support from Vingroup and from Mr. Pham Nhat Vuong, VinFast Founder, which was designed to equip VinFast with sufficient resources at this critical juncture on our journey towards becoming self-sustaining. The loans from Vingroup and grants from Mr. Pham, amidst currently unfavorable market conditions, allow VinFast to stay focused on executing our business plan and avoid fundraising on unreasonable terms. About 2024 delivery targets. As I mentioned earlier, we are reactivating our 80,000 delivery targets for 2024 and with recent performance in October, we believe we are on track. With that, I will hand it over to our CFO, Lan Anh for the financial highlights.

Thank you, Madame Thuy, and hello, everyone. It's great to speak with you again. I'm pleased to share that Q3 2024 was in line with our internal forecast, driven by an acceleration in our topline and an improvement in profitability, as gross loss and net loss narrowed significantly. As we discussed in Q2 2024, optimizing costs without sacrificing customer experience remains a top priority. Q3 2024 net revenue was US$512 million, a 42% quarter-over-quarter and 49% year-over-year increase. Our accessible segment, which includes VF 3 and VF 5 accounted for 35% of revenue this quarter, reflecting our continued focus on accelerating EV adoption to a wider population. Q3 2024 gross loss was US$123 million, and gross loss margin was minus 24%, a significant improvement from Q2 2024 gross loss of US$226 million and gross margin of minus 62.7%. On a year-over-year basis, Q3 2024 gross loss margin of minus 24% was approximately 300 basis points narrower than the Q3 2023 gross loss margin of minus 27%. The improvement of gross margin over the second quarter of 2024 was driven by increased sales, improved costs, and decreased interest to write out the growing value of inventories. In Q3, we continued to see average units' bill of material costs for electric costs decline by 8.3% and average unit production costs for electric cars decline by 20.1%. In terms of SG&A, SG&A expense of US$144 million represents a 10% decline quarter-over-quarter and a 23% increase year-over-year. This was still much lower than revenue growth. As a percentage of sales, SG&A was 28% compared to 44% in Q2 as we benefited from economies of scale. R&D expenses as a percentage of sales were 17% or US$87 million. R&D declined 21% quarter-over-quarter and 42% year-over-year. We expect R&D as a percentage of sales to continue to trend downwards in the coming years, given that we have reloaded our product development work. The incremental spending on R&D going forward will be mostly on technological enhancements, facelifts, and market-specific adjustments. EBITDA and EBITDA margin in Q3 2024 was minus US$232 million and minus 45.3%, respectively, a significant improvement from minus US$484 million and minus 134.4% in Q2 2024 and minus US$400 million and minus 116.8% in Q3 2023, respectively. Cost savings and higher volume have held our net loss for the quarter declined to minus US$550 million versus minus US$779 million in Q2, narrowing by 29% quarter-over-quarter and 15% year-over-year. CapEx in the third quarter was US$132 million, a 21% increase quarter-over-quarter and a 33% decline year-over-year. The sequential increase in CapEx was due to our investments in wrapping up the construction of our India and Indonesia factories as planned. Cash flow from operations was minus US$465 million, a 42% increase quarter-over-quarter from minus US$326 million in Q2 2024. On a year-over-year basis comparison, though, cash flow from operations improved by 47% from minus US$871 million in Q3 2023. Total cash burn for Q3 2024 was US$596 million. This figure accounts for both cash flow from operations and cash flow from investing. About cash balance and liquidity, we ended Q3 2024 with US$79 million in cash and US$968 million in e-Lock facility. On top of this, we have recently announced an additional capital injection of US$3.5 billion by the end of 2026. This amount includes US$1.4 billion in loans from Vingroup and US$2.1 billion in grants from VinFast Founder. Overall, I'm pleased with the business results in Q3 and happy that we have clear visibility on the overall financial position to support our growth and profitability plan. With that, I'd like to hand it back to Madame Thuy for her closing remarks.

Thank you, Lan Anh. Looking ahead to 2025, VinFast is preparing for a growth trajectory similar to what we have seen in 2024. We have started setting our footprint in several new markets this year. It is not the first time we have done so. And with the progress in the highly demanding markets of North America, we feel more confident and more equipped in our further expansion journey. Mindful that we are a relatively newcomer in the EV industry, we are taking all necessary steps to remain competitive in the long term. We strive to be nimble in our execution as we stay true to our mission of creating a sustainable future for everyone. Building a sustainable green mobility business is a big undertaking, and our recent liquidity boost will enable management to concentrate on executing our profitability roadmap. It does not mean that VinFast will not explore and seize external funding opportunities when the terms and deals are right. Producing high-quality electric vehicles is a complex task, one that requires unwavering dedication and fortitude to navigate ongoing uncertainties. Every day, we are learning how to make durable and exciting EVs that will be a key part of the global transition to green mobility. The path to green mobility is challenging, but our commitment to this future is resolute because the future is, without a question, electric. Let us now open for Q&A.

Let us now open for questions and answers.

Thank you, Operator. We have the first question from the floor. Can you share any color on your confidence in hitting the full year 2024 target? Given that you have only met 55% of the 80K of Q3, also ramping up to 40K in the last three months can be daunting. Do you see any challenges to production?

Thank you. We're very confident about hitting the 80,000 targets, especially having seen October and November numbers as well. We had a very robust Q3 number where we hit a number of milestones. We became the number one OEM in Vietnam and have exceeded our internal forecast for deliveries in the U.S. In Canada as well, we saw three consecutive best-selling months. So we continue the traction to solidify our market-leading position in October in Vietnam and for the first 10 months in 2024 in the domestic market. We expect that this momentum will continue through Q4, and like I said, having seen the number in October and November, we're very confident to hit the 80,000 delivery target.

Thank you, Madame Thuy. We have the next question from the floor. You have talked about BOM optimization for the last two quarters. Can you share more specifics on what areas you are focused on with regards to BOM optimization, and how does this impact your EV architecture?

Thank you, Nhi. We have a number of planned initiatives for BOM optimization that are undergoing testing and validation phases to optimize and upgrade our electric vehicle, electric-electronics architecture, which is a complex process given that safety is the overarching priority. We also have discussions with many long-term relationships with the suppliers that we support, with better terms and payment options. Besides, we are also optimizing some features like ADAS for various models and better sourcing for other components, where we have seen favorable material price changes.

Thank you, Ms. Lan. I see there are some hands for live questions. Operator, please open the line.

Thank you. We will now take our first live question from Andrew Sheppard from Cantor Fitzgerald. Please ask your question, Andrew.

Hi, good evening everyone. Congratulations on the quarter, and thank you so much for taking our questions. Thuy, I was just wondering if you wouldn't mind just walking us through the liquidity one more time. Just given the recent US$3.5 billion capital injection. Can you maybe just remind us when you're expecting to receive this and what is the expected cash runway as a result of this recent capital raise? Thank you.

Good morning, Andrew. As we have previously shared, the injection of US$3.5 billion will take over a two-year period to 2026. We will disclose the timing and amount from grants and loans as it happens. Our liquidity provision, as I just mentioned in the remarks, was US$1 billion at the end of Q3 2024, which includes US$79 million in cash and US$968 million in e-lock facilities. We expect conservatively that our cash burn to be roughly in line with the historical spend even as revenue growth is expected. The use of this capital injection will go into our CapEx and debt repayment. The major CapEx items to consider include our factories, ongoing battery leasing expenses, and CapEx for R&D. Our capital deployment strategy balances near-term growth investment with long-term sustainability. This committed capital support gives us the confidence in executing our growth plans while maintaining financial discipline.

So, Andrew, just to add a little bit to that, as you can appreciate that when we did the calculation for all this, all sort of approval at VinFast as well as Vingroup level, we calculated to ensure that we have enough runway until we achieve EBITDA profitability. Even in the worst-case scenario where we cannot raise capital from external sources, we believe this is not going to be the case. We believe that the market will get better. But to give us confidence, we can keep our head down and focus on executing our plan. Our shareholders have already provided us with sufficient capital so that we can reach profitability.

Wonderful. That's super helpful. I appreciate all that detail. Maybe just as a follow-up, there was a very good improvement in gross margins this quarter. Just wondering if you're still on track to achieve positive gross margins next year and kind of what that path between here and there might look like? Thank you.

For now, we still maintain our forecast for 2025 and 2026. We are in the middle of the budget season right now, making changes to the five-year plan. So, we expect that we're going to be able to provide more guidance at the end of this quarter.

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

Thank you.

Thank you. Our next question comes from the line of Tyler DiMatteo from BTIG. Please ask your question, Tyler.

Hi there, thank you for taking the questions. Appreciate the time. I wanted to follow-up on some of the comments in the press release about the responding to increasing demand. But the new EV facility in Vietnam, the completely knockdown concept. I guess I'm just curious to get a little bit more color, on kind of the rationale for that facility. It seems like it's just going to be to manufacture the VF 3 and VF 5, which makes sense given the demand you're seeing. I guess I'm just curious, kind of why pursue this route, and kind of just the strategic rationale here for this new facility? Thank you.

Thank you, Tyler. We still have a backlog for VF 3. We've been trying very hard in the last months to deliver on the backlog orders of VF 3, but we don't think we'll be able to finish it this year. The demand for VF 3 and VF 5 continues to grow. These are the best-selling models for the Vietnamese market. Having seen the trends in other markets like Indonesia and the Philippines, we see the same excitement for the VF 3 globally. So this CKD factory dedicated to VF 3 and VF 5 aims to meet the growing need for those affordable models.

Okay. Great. And then just to follow-up here on the India and Indonesia facilities. I guess given those comments, how does this maybe change how you think about the production capabilities of those two facilities? And then also on those two, at this point, what's still left to be completed on those to get them up and running next year?

So the India and Indonesia facilities are still necessary for tax reasons in those countries. These countries have quite protective domestic manufacturing policies. So having the facilities in those markets is necessary to remain competitive. The new CKD facility in Vietnam is meant to meet the needs primarily for domestic markets, and maybe some international ones as well. They are complementary to each other.

Okay. Great. Thank you for the time. I really appreciate it. I'll turn it back to the queue.

Thank you. I'll now like to hand back to the room for questions on the floor.

Thank you, operator. We have the next question from Thuc-Thanh. In the first nine months of 2024, what will be the contribution of the Vietnamese market to the total car deliveries for 2025? What is your projected growth for EVs compared to 2024, and how do you anticipate the division between Vietnam and international markets or B2C and B2B channels?

In the nine months of 2024, Vietnam contributed around 90% as the market continues to be a strong foundation, driving our growth. In the Vietnamese market, we saw impressive results with a growth rate of 504% year-over-year in nine months of 2024. This is also the highest year-over-year growth in the Vietnam industry and significantly higher than the other players. So for 2025, we are currently reviewing our business plan and budget. We will not provide formal guidance until around the end of this year or early next year. However, what we can share is that we expect increasing market share in Vietnam to be one of the core strategies we continue.

Thank you, Ms. Lan Anh. We have the next question from the line. Can you elaborate more on the finance lease for the new factory?

Okay. So the new facility operates on a long-term lease structure similar to a sales leaseback structure where we don't have to invest initial capital, and we pay the lease on an annual basis. We also have the option to buy back the facility from the lessor in the future. This structure allows VinFast to carry out prudent management of capital, enabling the company to allocate resources efficiently while balancing growth and profitability.

Thank you, Madame Thuy. We have the next question regarding ASP trends. Can you comment about your ASP? Is VinFast overly focused on lower price models and targeting lower-income countries?

In Q3, ASP was US$21,000 per unit, compared to US$24,000 per unit in Q2, a decline of over 10% in ASP, driven primarily by the introduction of VF3 into the mix. We expect to see ASP remain in this range during the early adoption stage, where customers tend to prefer small cars at lower prices to explore and experience. We expect ASP to pick up once the early adoption wave is over, and customers are more comfortable with EVs and willing to pay for higher-priced, larger cars. However, ASP is only one part of the equation. The other part is unit growth. Our objective in introducing more affordable models is to capture a particular underserved cohort of consumers that prioritize value both in dollar terms and environmental impact. Ultimately, strong unit growth should offset ASP decline and lead to sustainable revenue growth.

Thank you, Ms. Lan Anh. We have the next question from the floor regarding VF9 in the U.S. Exciting to see that VinFast introduce another model in North America, especially at the time when your peers seem to be retreating or putting their EV plans on hold. Can you share what the initial dealer feedback has been on the VF 9 and which models will the VF 9 be competing with, is your target demographic for the VF 9 different from the VF 8?

Thank you. Vietnam has been a long-awaited model in the U.S. If you recall, originally two-thirds of the pre-orders in the U.S. were for the VF 9. Vietnam is one of the very few seven-seater, three-row electric car models on the market. Globally, we believe that the VF 9 will be an ideal vehicle for large families, delivering premium quality and a luxurious experience while maintaining excellent value. It's going to be a good product for the market in the U.S., and the addition of the VF 9 will help us widen the customer base in the North American market, where there are currently quite limited choices for quality and reasonably priced three-row EVs.

Thank you, Madame Thuy. Next question from the line regarding comments on related party customer, GSM. Can you share the deliveries to GSM in the third quarter '24 as well as the guidance for future deliveries to GSM? Thank you.

For GSM, in Q3 2024, it accounted for 22% of our total volume, which is less than Q1, because you may remember that in Q1, GSM accounted for 46% of the total volume. For the total nine months of 2024, the total volume from related parties is significantly less than it was in 2023, dropping from 72% to 38%. We see that the GSM B2B customer has been instrumental in pushing for EV adoption, bringing VinFast EV closer to consumers through real-life experiences, thus building brand awareness not just in Vietnam but also in the markets that GSM is expanding into. As we have been able to grow our customer base, we also expect our GSM contribution to VinFast revenue will be less significant in 2024 compared to 2023.

Can I share a little bit about the GSM? Last year, I remember we had a lot of questions about related party transactions, why you had 72% of your sales to your related party. This is exactly how we explained it last year, and it turned out to be exactly that way. GSM has helped us get customers into the vehicles, get them familiar with EVs and help support sales to retail customers. This has increased sales to retail customers in Vietnam nearly six-fold compared to last year. Another interesting fact is that other taxi companies in Vietnam have started buying EVs now that they see they can save up to 38-40% of operating costs compared to diesel. We have contracts with 120 different taxi companies in Vietnam, covering almost 90% of the taxi companies in Vietnam, some of them with contracts for 3,000 to 5,000 cars over a few years. So GSM has been and continues to be beneficial to us, and the introduction of GSM in other markets is also expected to have a similar impact. We may sell a bit more to GSM initially, but this helps us achieve many more retail and B2B customer results.

Thank you, Madame Thuy. Back to the operator. Please open the line.

Thank you. We will now take our next live question from Dan Ives from Webs. Please ask your question, Dan.

Yes, thanks. So solid progress to the team. So can you talk about what the - as we think about 2025, what the ramp is going to look like when you think about in Indonesia and the U.S.? Like is that going to be something where it's more of like a second-half ramp? Or first, can you just maybe talk about as much as you could explain as we go into 2025? Thanks.

Hi Dan, so 2025, we still think that Vietnam will contribute a significant part to the deliveries in the year. It's a good thing that we have Vietnam as our home market, the foundation that allows us to get closer to profitability. We also expect to start in Indonesia and the Philippines. Next year, we're opening in India. We continue having traction in North America and the Middle East as well. So we believe that next year, we're going to expand further in international markets. We need to balance between growth and profitability. So that balancing act will continue into next year as well.

Okay. Great. And then Vietnam - does it feel like, going into 2025 versus 2024, does it feel like you have a better line of sight in terms of like deliveries, growth variability as we go into '25 versus '24? Can you just compare? Thanks.

We started gathering a lot of momentum in Vietnam. In September, we celebrated the first time in Vietnam's history that a local OEM outperformed international brands like Toyota and Honda. In October, we affirmed that number as well. I think in Vietnam, we hit about 115,000 deliveries in October alone. Toyota was around 9,000. So year-to-date, we are ahead of everybody else in the market: EVs and internal combustion engines combined. We can clearly feel the sentiment and momentum in the market. We didn't even have all the models available for the whole year in Vietnam, right? So we think that next year is going to be a good year for us in Vietnam, with all the models available, a lot of issues resolved, and all the momentum we've built in 2024. We anticipate that by the end of this year, we'll have about a quarter of the market share in Vietnam for the whole year. Next year, we aim to get 50% market share; who knows? But that's the target. In addition to that, we continue growing in international markets as well.

Thank you.

Thank you. I'll hand back to the room for questions on the floor.

Thank you, operator. We have the next question from the line regarding charging solutions in new markets. Could you let us know how you intend to be competitive overseas when it comes to charging and related services?

At VinFast, we believe that services are a very important factor for the EV experience. We continue to emphasize good quality products, affordable pricing, and excellent after-sales service. We are dedicated to building brand loyalty through our battery leasing, warranty packages, connected services, and charging solutions. VinFast vehicles are connected through V-Green to our sister company, which was part of VinFast before, and currently have access to more than 1 million charging points worldwide. Our VinFast customers have access to more than 90% of the smart public third-party charging stations in the U.S. Additionally, we have access to about 900,000 charging points in Europe. In Vietnam, V-Green charging network is growing rapidly and is expanding to other markets as well. The good thing about VinFast charging is that our VinFast app aggregates and simplifies the public charging user experience, updating live data every minute, allowing the user to plan charging routes and easily pay for charging within the app. So instead of using multiple apps and different digital wallets for different third-party providers, we continue to enhance our customers' charging experience.

Thank you, Madame Thuy. We have the next question from the floor. What are the main international markets contributing to sales in nine months 2024 and which models are driving those sales?

For the international markets contributing to sales in nine months 2024, North America is the leading market. The VF 8 is our top-selling model. We have just introduced the VF 9 to this market, and we see that the North American market has begun to pay off that calibration we made. In September, it was also the best month in the history of the North American market, thanks to our ever-growing dealer network and continuous improvements in our EVs. Taking Canada as an example, we observed three consecutive months of growth in July, August, and September.

Thank you, Ms. Lan Anh. We have the last question from the floor. What are the key milestones we should be on the lookout for the remaining months of the year or heading into 2025?

In 2025, we will continue focusing on the domestic market, which is very important for us. The groundwork that we have laid in 2024 for our international strategy will continue to gather momentum in 2025. Firstly, we will continue to diversify our product offerings in North America, with the recent delivery of VF 9, and we look to add VF 6 and VF 7 to the market next year. Secondly, we have put in place two key levers for our Indonesia strategy: battery leasing, which is already being offered in the country and receiving a lot of interest, and the upcoming launch of GSM in Indonesia as well. For the Philippines, we expect to apply the same approach as we did in Indonesia. We also have a new CKD facility in Indonesia and India coming online in 2025, which will be integral to our international strategies and will allow us to be competitive in these two important markets. Finally, in 2025, we plan for our first-ever Investor Day in the first half of 2025. We hope to see many of you there, and I hope to introduce our leaders and different members of our management team to the investment community in the new year.

Thank you, Madame Thuy. That was the last question we received from the live today. Thank you, everyone, again, for joining VinFast and for your continued support. If you need any clarification, please don't hesitate to let us know by sending an e-mail to ir@vinfastauto.com. Goodbye and take care.

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.