VinFast Auto (VFS) Q2 2026 earnings call transcript

Thank you, Operator, and good morning, everyone. Welcome to VinFast Second Quarter 2026 Earnings Call. Please note that 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 might involve risk and uncertainties. Before we begin, I would like to introduce today's speakers in light of our recent leadership changes. Joining me is our Chief Executive Officer and Chairman of the Board of Directors, Mr. Pham Nat Kwan An, who was appointed CEO on September 12th after serving in several key leadership roles at VinFast. Also on today's call are our Chief Financial Officer, Ms. Lana Nguyen, and our Chief Investment Officer, Mr. Qian Nguyen.

The management team has worked closely together over the past few years, providing continuity as we execute on VinFast's next phase of growth and profitability. With that, I would like to invite our CEO and Chairman, Mr. Kwanan, to begin the management remarks.

Hello, everyone. Since our last earnings call, VinFast has continued to build significant momentum across our business. We have expanded our product and technology roadmap, debuted next-gen platform models with in-house developed driver assistance technologies, launched our e-scooter business overseas, and taken important steps to support our long-term financial profile. We announced VinFast's participation in the Investors Consortium developing the Hanoi International Sports Urban Area Project, where we now hold, through Ngok Hoi, a 20% economic interest. Our participation in InWing Group's connected urban ecosystem creates another avenue to support WinFast long-term development while complementing our core mobility strategy. In quarter to 2026, WinFast delivered 70,085 electric four-wheelers, up 20% quarter over quarter and 96% year over year. We also delivered 286,000 electric two-wheelers, up 100% quarter over quarter and 311 percent year over year.

First half of 2026 deliveries totaled 128,662 electric four-wheelers and 429,175 electric two-wheelers. Nearly a decade since our founding, we have cumulatively delivered over 500,000 four-wheelers and 1 million two-wheelers, establishing an increasingly diversified presence globally.

Today's progress validates investment in our products, manufacturing capabilities, technology, and ecosystem. Looking ahead, our priorities are clear. Ramp up production at our international factories, broaden our product portfolio, advance our autonomous driving capabilities, and expand into new markets alongside GreenSM. In parallel, we remain focused on strengthening our after-sales network and service quality to our growing customer base. Together, these initiatives are designed to support sustainable volume growth, improve operating leverage and advance our path to profitability. Windfast now operates in 15 countries. We continue to evaluate additional opportunities where we see structural tailwinds for adoption of electric smart mobility solutions and a viable path to scale. that I will turn it over to Chen to walk through the key business updates.

Thank you. Indeed, the last few months have marked exciting progresses across both our product roadmap and technology capabilities, demonstrating our continued focus on innovation while executing our strategic priorities.

A key highlight was the launch of the VF World RAEV, the newest addition to our product portfolio and an important milestone for the company. Beyond VinFast's next-generation large vehicle platform, the VFWR combines the smooth, responsive driving experience of an electric vehicle with the practicality of an extended-range technology, delivering over 1,000 kilometers of total driving range while remaining fundamentally electric in how it performs. Our first-range extended electric vehicle, the VF Wild, expands our addressable market and gives customers greater confidence and flexibility, particularly in segments where long-distance capability is highly valued.

The VF Wild is now available in Vietnam and we expect to bring it to international market next year. Equally important was the start of production of the all-new VF8. the first commercial deployment of our in-house driver assistance technology. It carries a novel ADAS Level 2 suit covering active safety, warning and detection, intelligent driving assistance and parking, as well as several smart services.

We used to license the technologies, and now we develop these capabilities in-house at a fraction of the previous cost. More importantly, this creates a scalable technology foundation that paves the way for future model launches.

Speaking of ADAS and Altimus driving, we showcased our latest robotaxi prototypes during the Vingroup Investor Tour 2026 earlier this month. Recent improvements included smoother acceleration and braking, more natural cornering, vehicle-following behavior, and an overall more refined driving experience. We are also continuing to improve our navigation on autopilot capabilities, with particular emphasis on driving quality, predictability, the passenger comfort. In parallel with technology development, we are working with the relevant authorities on the regulatory sandbox, safety standards, and training protocols.

Together, these developments reflect the rapid progress we are making toward our planned pilot of 200 Level 4 robotaxis at Vinhomes Green Paradise in Kansu in late 2027. Turning to key market updates, starting with Vietnam, where Vinfast has maintained the number one position for 22 consecutive months since September 2024. As of June 30th, our share of the overall Vietnam automotive market was approximately 38%. During the quarter, we launched the all-new VF8 as well as the VF2. our most compact passenger vehicle model.

Initial customer response was strong, pre-order of more than 28,700 VF2 within the first three days and more than 12,700 VF8 within the first eight days of launch.

Our two-wheeler business also continued to scale, reinforcing Vintracht's position as the number two player and further narrowing the gap with the market leader. We also produced our one millionth electric two-wheeler since inception, an important milestone for the business we launched nearly eight years ago. Our latest models incorporate dual removable batteries, giving customers the flexibility to charge at home or use battery swapping infrastructure.

In parallel, V-Green continues to expand its battery swapping network across the country. Now, moving on to our international market. In Southeast Asia, one of our key priorities this quarter was the expansion about electric tubular business in Indonesia and the Philippines. We opened 20 new electric tubular dealerships across Indonesia and 21 new electric tubular dealerships across the Philippines. We are also introducing three battery swapping models, supported by a battery subscription program.

The opportunity is significant because two-wheeler population in both countries are substantially larger than their passenger vehicle market. Big-wing battery swapping and subscription model is designed to reduce upfront ownership costs while addressing charging inconvenience. Two important considerations for mass market adoption. In four-wheelers, B2B fleet sales continue to play an important role in building vehicle visibility and utilization.

In the Philippines, the VF3 is being piloted as a police patrol vehicle in Manila. In Indonesia, we secured a wholesale order from the Borgore Regency Government, making further progress in the public sector fleet segment.

Turning to India, effective July 1st, we implemented a second 5% price increase on the VF6 and VF7, reflecting our discipline approach to pricing as the business skills. We also expanded our product offering with the launch of the seven-seater MPV7, followed by the soft launch of the Lima Green taxi variant in India. At the end of the quarter, Vintash ranked as the number one BEV brand in the Philippines, number five in India, and number eight in Indonesia. Overall, during the quarter, 11% of our EV deliveries were to international market. The Limo Green accounted for 23% of deliveries. The VF8 overall during the quarter, 11% about EV deliveries was to international markets. The Limo Green accounted for 23% of deliveries.

And the VF3 and VF5 collectively accounted for 38% of deliveries. Electric forward deliveries to related parties accounted for approximately 6%, and electric two-wheeler deliveries to related parties accounted for approximately 4% during the quarter.

Finally, I would like to provide an update on GSM international expansion. As we have discussed previously, GSM can serve as an important market development channel for VinFast. By introducing VinFast vehicles through mobility services, GSM can build vehicle exposure, generate real-world usage data, and help us assess customer behavior before we commit to a broader commercial presence.

GSM is now operating in Kazakhstan, Denmark, and the Netherlands, and most recently in the US. With additional markets are expected to follow. GSM presence provides opportunities for customers to experience VinFast vehicles directly, while giving us additional insight into local operating conditions and customer preference. This is another example of how the broader VinFast ecosystem can support discipline international expansion and help us evaluate new market before scaling investment.

With that, I'll hand over the call to Lanang to review our financial results.

Lanang Liu Thank you, Chien. Before I walk through the details let me briefly frame the quarter and the second half of our work We delivered a strong revenue growth as vehicle volumes continued to scale while profitability remained affected by several factors including revenue deferrals, continued investment in our next generation product and technology platforms, and the transition to our access-light manufacturing model in Vietnam. Following the restructuring of our Vietnam manufacturing operations, the disposed manufacturing operations have been classified as discontinued operations while the businesses and activities that remain with VinFast are presented as continuing operations. Accordingly, our prior period income statements have been recast to present the result of these operations separately from continuing operations. We believe this provides a clearer view of the underlying performance and financial profile of VinFast following the restructuring.

Please refer to the form CK for this morning for additional details. Strategically, the transaction was designed to create a more capital-efficient operating model while preserving long-term access to our manufacturing capacity. Over time, we expect the new structure to reduce the fixed cost and capital burden associated associated with owning manufacturing assets, including plant-level depreciation, fixed operating costs, and financing-related expenses, and to allow VinFast Auto direct more of its capital towards product development, technology, commercial expansion, and the broader electric mobility platform.

Turning to this quarter's results, revenue for the second quarter of 2026 grew 32.9% quarter-over-quarter, and 85.5% year-over-year to US$1.2 billion. We recorded a revenue deduction of approximately US$88 million this quarter related to the extended pre-charging program sponsored by Mr. Pham Nyad Vue, which is accounted for a GIM contribution from the owner and a deduction from revenue. Excluding this impact, revenue would have been US$1.3 billion. US dollar. Grouch margin was negative 62.8% compared with negative 21.8% in the same period as last year. Grouch margin was significantly affected by firstly the recognition of cost of goods sold associated with certain vehicle sales for which revenue recognition has been deferred which accounted for approximately 15% of cost of goods sold for the quarter and secondly additional expenses related to the extended free charging program sponsored by Mr Pham Nhật Phuong.

Excluding the impact of the extended free charging program, revenue deferrals and NIV adjustments, our underlying gross margin would have been negative 28.7%. Moving to operating expenses, RMDA expenses were $154 million, an increase of 52.8% quarter of a quarter and 65.9% year-over-year. This primarily reflects the ram-off of vehicles based on our next-generation vehicle platform, EE 2.0 architecture and ADAS technologies.

R&D represented 12.8% of revenue for the quarter, slightly lower than the same period last year. SG&A expenses were $209 million, an increase of 116.9% quarter-over-quarter and 59.4% year-over-year. This increase was primarily related to the sales programs and incentives for vehicles delivered in certain overseas markets where revenue had not yet been recognized. As a result, these costs were recorded as a selling expense rather than a deduction of revenue, as they would have been if the revenue had been recognized.

SG&A represented 17.3% of the revenue for the quarter, compared with 20.2% in the same period last year. CAPEX was $233 million and increased of 18.2% quarter over quarter and 11% year over year, primarily reflecting the expansion of our India and Indonesia manufacturing facilities as well as spending in our Vietnam factory prior to the spin-off. These investments are targeted towards markets where we see the opportunity to build meaningful local scale and improve the economics of our international operations through retail localization.

Adjusted EBITDA for the second quarter of 2026 was negative $1.1 billion compared with negative $728 million in the first quarter of 2026 and negative $362 million in the second quarter of 2025. The increase in the adjusted EBITDA loss was primarily driven by the extended pre-charging program, revenue deferrals and related sales programs and incentives in certain overseas markets. Excluding these items, along with the NRV adjustments, adjusted EBITDA would have been negative $678 million, with an adjusted EBITDA margin of negative 53.2%, compared with negative 37.3% in the first quarter of 2026, and negative 44.3% in the same period last year. The lower adjusted margin was primarily the result of continued investment in R&D for our next generation of vehicles, which we expect to moderate over the medium to long term.

Net loss from continuing operations was approximately $1.2 billion, representing a net loss margin of 102.8%, compared with 92.1% in the Q1 2026, and 83.7% in the same period last year. excluding the impact of the extended pre-charging program revenue referrals related sales programs and incentives in certain overseas markets and NIV adjustments the net loss margin from continuing operations was 61.4% compared with 47% in the Q1 2026 and 72.3% in same period last year. Net income from discontinued operations was approximately $1.2 billion, comprising a gain on disposal of $1.5 billion nasotypes, are partially offset by losses from discontinued operations of $285 million prior to the disposal date. Total net loss for the second quarter was $56 million, representing a net loss margin of 4.7%.

Total liquidity as of 30 June 2026 stood at US$2.3 billion, including the remaining funding commitment from VinCorp and VinFast founder, a lot of facilities which remain available until 1 November 2026, cash and cash equivalents. Now I would like to address our recent United States investment and places in the context of the broader changes we have made to VinFast long-term strategy and financial outlook. Over the past several quarters, we have taken a number of steps intended to strengthen VinFast's long-term financial profile. The structuring of our Vietnam manufacturing operations reduced the capital intensity of the business, while our participants in the Hanoi International Sports Urban Area project represent a unique investment opportunity to add a complementary earnings and cash flow stream alongside our electric mobility operations.

These actions share a common objective to create a stronger and more resilient financial foundation from which we can continue investing in VinFast long-term growth. The EV business remains our core strategic focus. We continue to invest in our product portfolio, technology, international expansion, and the broader electric mobility ecosystem. At the same time, real estate investment is strategically relevant to that ecosystem rather than separate from it. VinFast and the green mobility ecosystem have already established a platform spanning electric vehicles, ride-hailing services, and charging infrastructure.

As that ecosystem expands, Run-Estate creates an opportunity for VinFast Auto participate more directly in the development of the smart, connected urban environment in which electric mobility will increasingly operate. The investment also offers an attractive financial profile. We expect the project to become an additional source of earnings and cash distributions, with contributions increasing from 2027, subject to project execution and sales progress.

This provides VinFast with additional sources of internally generated capital that can support continued investment in our core mobility business and reduce our reliance on external funding over time. Importantly, these changes should be viewed together. The asset-light manufacturing structure reduces the fixed costs and capital burdens of the core business, while the Runga State Segment shankens consolidated earnings and cash generation. Our objective is therefore not simply to grow revenue, but to build a business with a stronger balance between growth, capital efficiency and financial sustainability.

We believe the steps that we are taking today are putting us in a significantly stronger position for the next phase of development of our electric mobility platform. Operator, let's open the call for Q&A.

As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. To ask a question via the webcast, please type it into the box and click submit. I'll now pass it over to Amanda for questions coming through the webcast.

Thank you, Operator. We have the first question from the webcast regarding VinFast long-term strategy. How do the recent changes to VinFast operating model and investment plans fit into your overall key priorities over the next 12 to 24 months and the longer-term strategy? We'll let our CEO, Mr. Kwanan, take this question.

Kwanan, please.

Yes. Over the next 18 to 24 months, our focus is on translating the scale we have built on a stronger and more sustainable economical model. First, we will continue to scale our core automotive business while maintaining capital discipline. We will prioritize markets where we see a strong consumer demand, opportunities for localization, and the support from our broader ecosystem.

Second, improving profitability remains a key priority. We are pursuing this through a continued vehicle cost reduction, a more asset-light manufacturing model in Vietnam, and a contribution from a real estate segment which is expected to support EBITDA and the cash generation.

Third, but not least, technology and product innovation remain essential to our long-term competitiveness. We will introduce vehicles based on our next generation platform and EE 2.0 architecture, continue advancing our ADAS capabilities, and expand our product portfolio across passenger vehicles and electric two-wheelers. Together, these priorities are designed to support sustainable growth, strengthen our financial position, and advance our path to profitability.

Thank you, Kwanan. We have the next question on the line regarding our second half delivery ramp. Can you walk us through the key volume drivers that give you confidence in this year's guidance, including the contribution from new models versus existing models and Vietnam versus international markets? Lanang, would you like to take this?

Okay, so in the first half of 2026, we delivered around 43% of our full year target. We expect a growth in the second half of this year to be supported by the launch of the new models and typical seasonality as the vehicle purchases tend to accelerate towards the year across the many Asian markets If you remember that in 2025 approximately 63 of our full year sales were generated in the second half. So if we break by model, the growing contribution from new models including the Limo Green, The MPV7, which are expected to account for around 35% of the sales in 2026. And the all-new VF8 and VF2 are also expected to support roles in the remainder of the year.

The new VF8 received about 12,700 pre-orders in eight days, while the VF2 received about 28,700 pre-orders with more new generation models launching from Q3. For Vietnam, Vietnam remains the core market expected to contribute more than 75% of our guidance of the 300,000 EV targets with the 154,073 EVs delivered in the first eight months of this year. VinFast has been the number one OEM in Vietnam since September 2024.

Internationally, VinFast has continued to scale rapidly. In the Philippines, sales grew more than 300% year over year, making VinFast the number one DEV brand by Q2 2026, while India is also showing strong demand with over 3,000 units sold in the Q2 2026 and supported by the continued showroom expansion particularly in the international markets with the dealership network we have the like for the dealers showrooms in India We have the 58 showrooms, 34 showrooms in the Philippines and 38 showrooms in Indonesia.

Thank you, Lanan. The next question on the line is regarding manufacturing. Internalization and increased vertical integration technology and production capabilities has been very important for VinFast's growth story in recent years. How does the disposal of Vietnam's manufacturing assets contradict that policy? Chien, would you take this, please?

Thank you for the questions. So we see the transaction as a change in how we deploy capital. Moving to an asset line manufacturing model allows us to allocate more capital to technology, product, and international expansion. By maintaining control over capabilities that are critical to our long-term competitiveness. What we have built in-house with that differentiate VinFast is our core capability in product design, R&D, technology, IB, brand, sales and after sales. And these capabilities will remain fully within the company.

Future will continue to manufacture VinFast branded vehicles under long-term manufacturing agreements based on our design specifications and quality standards. We also continue to lead new material optimization and supply chain management while retaining long-term access to manufacturing capacity. So we continue to own and operate our plan in India and Indonesia, supporting local production and our international ambition.

Thank you, Chien. The next question on the line is regarding our real estate investment. How does the Hanoi International Sports Urban Area Smart City Development create commercial opportunities for VinFast core EV business? And how is VinFast going to ensure that future capital allocation remains consistent with the funding needs and profitability goals for the core EV business? Chin?

So the Hanoi International Sport Urban Area was built on smart mobility ecosystem that we already have in place. So through our 20% economic interest, VinFast can also participate in the value created by the broader urban development. With VinHomes leading the projects, we expect our participation to generate additional earnings and cash distribution that can support continued investment into our core EV business. Our priority remains unchanged to build a sustainably profitable EV business, and we will focus capital where we have a very clear competitive advantage and the pay expansion to protect funding for our core priorities.

There's a follow-up question on this topic. Just to clarify, what is VinFast's strategy after the transaction? And upon completion of this, does VinFast still intend to position itself as an auto company with an additional real estate business? Or is it transitioning to become a more diversified conglomerate chain?

So definitely we are still an EV company. The transaction does provide VinFast with a unique opportunity through the Vingroup ecosystem. and it reflects the continued support by the founder and major shareholder with the FAM network. The project is expected to generate substantial profits and recurring cash flows, helping offset ongoing EV business losses and strengthening VinFast financial positions and diversifying shots of debt repayment.

The direct participation as a project developer gives us greater control and involvement throughout the whole project lifecycle. and it allows the company to create and capture a greater share of the value generated.

So the strategic location of the project and the significant scale that it offers provides us the opportunity to integrate our EV and green mobility ecosystem from a very early planning stage. And this is in line with global trend towards connected mobility, connected infrastructure and smart urban development. So, you know, over the long term, our electric vehicle business will continue to be the cost business and it will be the key growth driver for the company.

The next question on the line is regarding, does Binfast have any update on your break-even timeline? Lannan?

Yes. There is no change in our break-even plan. We remain committed to reaching a BTA break even in the medium term. Vietnam expects to be the first market to get there. Our task is supported by several levers, like the first one is called the BOM optimization, our most important structural driver. BOM costs for the BF6 and BF7 fell by more than 20% in 2025.

and we expect an average for the reduction of around 10 to 15% over 2026 to 2027. As our new platform, then the 2.0 architecture scale up. The all new VF8 shows this in practice. It's a price 20% to 30% below the previous VF8, while offering more advanced technology, including our new EE to Poyero adapter, faster over-the-year updates and upgrades ADAS features.

The second legacy skill, higher volumes spread fixed cost and S&A over more vehicles, while R&D has a share of revenue decline that our platforms are shared across more models.

Another one like a linear cost and capital structure, the asset-like model reduce our DAB, financial cost and CapEx intensity. So we can focus capital on product, technology and international growth. And the last one, the update for like a real estate contribution as for the Hanoi International Sports Urban Area like you just mentioned. This is a project to, like it is expected to bring additional earnings and cash flow from 2027, which should make our path to break even smoother.

Thank you.

Thank you, Lana. And that's it from the questions online. Operator, we can turn it over for live Q&A.

Hey, Jesse, can you hear us?

Yeah, we can hear you.

Thank you. Thank you for your question. Now, as we just mentioned, that the total liquidity as of the June 30, around 2.3 billion US dollars of which we have the like a Yorkeville will be available of the around 968 billion US dollars and also we have the from the commitment from chairman the VINFAST as Bing Group founder and the commitment support from the Bing Group around near like $1 billion. And we have the cash and cash equivalent of around $281 million. US dollar. So for the liquidity beyond the support from the founder from Binkroup and we also have the real estate project like our CIO just mentioned that contribute for the cash generation in the coming time also.

Yeah, so basically the idea is that, you know, we have, you know, certain contracts expiring and we are exploring opportunities in the market with a strong relationship to have it. Various international bank lenders and investors will be in a position to announce something, in the coming months. But as Lanang just mentioned, we do expect strong cash generation and inflows coming from our real estate business segment, and that will be a strong reinforcement into the company's liquidity position.

Based on our projection, yes. It is more a matter of timing. So probably you will be able to see the impact of it more evidently in the coming quarters. Hope that addresses the question.

Thank you.

So autonomy is always the most important, you know, happening at being fast, right? So as I mentioned during the, you know, the presentation earlier, We showcased our new prototypes for the prototype earlier this month at the Vingroup Investor Tour, and this one included various new functions compared to the one that we introduced last year Very proud to say that other than camera vision perception now we work on a variety of other technology as well, including LiDAR, including radar, just to say. So for us, L4 is a future platform capability and it's not you know seen simply as a vehicle feature.

I think the critical enabler, something that we are working and focusing on a lot at the moment, is data and continuous validation and the access that we have you know to the fleet environment through GSM really help us accelerate that learning cycle and as you know right we announced that Next year, we'll have a mass scale pilot about two different L4 robotaxis in a Vinhomes development in Vietnam. So that is surely something to look forward to.

You know, about robotics, you know, we have been working closely with a few robotic companies within the ecosystem of Vingroup. And, you know, some of them have already have working robots running in our main plan in Haiphong, serving, you know, various different tasks. I think the aim is for us to continue implementing them and allow the robots to carry on more difficult, complex procedures.

Yeah, thank you. I think for us, Indonesia is very important because it's one of the top key priorities. And the early success that we have until now reflects the right decision to pick the focus market early on. Indonesia shares a lot of similarities with Vietnam. You know, big population, growing population, and a significant portion of the population entering already in, you know, middle income class. and the country hugely tech savvy and we really appreciate the fact that our vehicle has been well received by the local population. This is also a very competitive market in which we apply various has a creative go-to-market strategy so we're not only talking about we're not only talking about the taxi company GSM or the charging company V Green that comes with us to the country is also about offering initiative like free charging or battery subscription.

So this is something this is quite unique to us and something that we you know really proud of. Our team also focus a lot of B2B and corporate fleet channels. For us right, Indonesia represents big opportunity from both B2C and B2B point of view and you probably know that this is also the countries that we have the second widest product offering you know including the VF3, VF5, VF6, VF E34, VF7 and most recently the Limo Green and VF MPV7. I think the biggest takeaway for us so far in Indonesia is that this is a country where we really need to be mindful not only about our capability but also about the move of the direct competitors right and we're talking not only about the Chinese OEM, but also the like of Tesla and, you know, the globally renowned OEM as well.

Yeah, so hope that, you know, addressed your question.

Thank you, Brian. So it's clear that our focus will continue to be Vietnam, Southeast Asia, and India. So these are where the organic growth and, you know, accelerated adoption of EV will take place in the coming years. And whatever work, good work that we've done so far, we need to work even harder and achieve more. And this comes with, you know, more appropriate go-to-market strategy for each of them and then bring in better vehicle, better technology and lower pricing. We are also exploring the possibility of going to a few other regions, you know, in the Americas, in Europe, and further.

And we probably will be in a better position to announce this in the coming quarter where things crystallize. But yeah, that's something for you to look forward to.

Thank you.

Thank you, operator. We'll continue with the questions from the webcast. The next question is regarding why did the long-term trade payables increase?

Thank you.

For the long-term trade payable, because we have the spin-off of Vin5's trading production, So following the spin-off, the payable for the vehicle purchased from Vinfast trading in production are recorded as a check payable. These payables have been eliminated upon consolidation had the restructuring not occurred.

Thank you, Lana. The next question is regarding our strategy. Does VinFast or any of its subsidiary FBA plan to expand into new business areas such as EPC contracting, metro, energy or steel projects?

As I mentioned before, VinFast remains fully focused on EV as its cost business. And the Ngokhoi project represents a unique strategic real estate opportunity to generate additional cash flow rather than a broader pivot into real estate. And, you know, we currently have no plan to expand into other business areas.

Thank you, Chin. The next question is regarding the VFTP divestment. Who bears the underutilization risk after the transaction? If Zinfast orders substantially fewer vehicles than VFTP's available capacity, does Zinfast have minimum volume guarantee related to other financial obligations?

So following the investment, now VFTP bears the underutilization rate and VFTP manufacturers manufacturers on a cost-start basis with the cost-enco to VinFastest study, the overrun care and excess depreciation bond by VFTP. So underutilization research is largely with VFTP. VinFastest has no minimum program commitment, capacity guarantees or other financial obligations raising solely from the ordering below VFTP's available capacity.

But because we are the long-term relationship partners and as VFAS continues to grow, we currently have no plans to reduce our orders from VFTP, which remains a key manufacturing partners alongside our facilities in our international market.

The next question is regarding our expected capex for India, Indonesia. Lana, would you like to take this?

Okay. For the capex guidance, we don't like to provide the formal capex guidance. Certainly, CAPEX is mainly for the capacity expansion of our Indonesia and India plans. The remaining CAPEX is largely tied to growth initiatives and will be faced in line with the demand and funding. We will keep it flexible and disciplined. We do not like to disclose the plan level, utilization thresholds or manufacturing economics for individual facilities.

Thanks Lanang. The next question is, is VinFast planning to enter Thailand and compete with the likes of BYD and GWN? There seems to be a big gap in the market for the electric two-wheelers.

Okay, thank you. So as you rightly say, there's a big market gap in electric motorcycles in country and for two-wheelers we are actually looking at other Southeast Asian markets including Thailand and Malaysia and for us right we look at factors including EV adoption, competitive intensity, government policy, infrastructure and whether we have the right product and right competitive edge for each of those countries. For four-wheelers right probably that is the story you know further in the future so we haven't got that plan yet. Our priority is really about execution in market where we already have an established presence. And so for us, right, we remain disciplined and opportunistic, you know, for the statist agent region.

Thank you, Chien. The next question is regarding the accounting treatment following the deconsolidation. Can you clarify the key accounting treatment for a period up to Q2-2026 following the deconsolidation. Lanan?

Thank you. As explained and also mentioned in our CK, the disposed manufacturing operations have been classified as a discontinued operation while the businesses and activities that remain within FNFAST are presented as a continuing operation. Costs identified that are borne by discontinued operations primarily including warranty related expenses. Interest on debt assuming by the buyer or required to be paid as a result of disposal has been allocated to discontinued operations. So if you see for the balance sheet, the key balance sheet impact sets of the 30 of June 2026, including some key impact, total external borrowings reduced by $2.9 billion US dollars and the DPNE also reduced by $2.6 billion US dollars. The inventory was reduced by 1.1 billion US dollars.

Thank you.

Thank you, Lana. The next question is regarding how we should think about the long-term split of deliveries from Asia versus non-Asian markets going forward. Chien?

Yeah, thank you. So by 2030, we still expect Asia to represent the substantial majority of interest global deliveries, roughly 90% of the total. but the composition within Asia should become more diversified. Today, Vietnam is by far our largest market. Over time, we expect India, Indonesia, and the Philippines, and other Asian markets to become more meaningful contributors. India in particular is expected to develop into one of our largest markets alongside Vietnam, where Southeast Asia continues to scale. The long-term plan therefore becomes much less dependent on a single geography, even though Asia remains the center of gravity.

Other regions outside of Asia is to represent roughly 10% of deliveries by 2030. And we continue to see strategic opportunities in those markets. Our approach is still delivering more measures and focus on segments and products where we believe we have a competitive edge. So the ship that we expect by 2030 is not necessarily Asia versus the rest of the world.

It is really about Vietnam becoming a smaller share of the much larger and more diversified Asian business. While America's Europe is to provide additional source of growth over time.

Thank you, Chen. Operator, that concludes our call today.