Vinfast Auto (NASDAQ:VFS) Q2 2026 Earnings Call

0:00 Good day and thank you for standing by. Welcome to VinFast's second quarter 2026 financial results and Q&A webcast. At this time, all participants are in 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 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. If you wish to ask a question via the webcast, please use the Q&A box available on the webcast link anytime during the conference. Please be advised that today's conference is being recorded. And I'd like to hand the conference over to your first speaker today, Ms. Amandae Baey, Vice President of Investor Relations.

0:49 Please go ahead, ma'am.

0:53 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 12 after serving in several key leadership roles at VinFast.

1:44 Also on today's call are our Chief Financial Officer, Ms Lana Nguyen, and our Chief Investment Officer, Mr Chien 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. Kuan An, to begin the management remarks.

2:14 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 Ngoc Hoi, a 20% economic interest.

2:59 Our participation in In-Ving Group's connected urban ecosystem creates another avenue to support VinFast's long-term development while complementing our core mobility strategy. In Q2 2026, VinFast delivered 70,085 electric 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% year-over-year. First half of 2026 Deliveries totaled 128,662 electric four-wheelers and 429,175 electric two-wheelers.

3:59 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 green SM.

4:46 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. Vinfast 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. With that, I will turn it over to Chien to work through the key business updates.

5:30 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 by 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. Built on Vinfast's next-generation large vehicle platform, the VF World 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.

6:20 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.

7:08 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 autonomous driving, we showcase our latest robot taxi prototypes during the Vingroup Investor Tour 2026 earlier this month. Recent improvements included smoother acceleration and braking, more natural cornering, vehicle following behaviour, 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.

8:13 Together, these developments reflect the rapid progress we are making toward our planned pilot of 200 level 4 robot taxis at Vinhomes Green Paradise in Can Tho in late 2027. Turning to key market updates, starting with Vietnam. 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.

9:00 Initial customer response was strong. Pre-order of more than 28,700 VF2 within the first 3 days and more than 12,700 VF8 within the first 8 days of launch. Our two-wheeler business also continues to scale, reinforcing Vintrast's position as the number 2 player and further narrowing the gap with the market leader. We also produce our 1 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.

9:50 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 of our 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.

10:43 Big wing battery swapping and subscription model is designed to reduce upfront ownership cost while addressing charging inconvenience, two important considerations for mass market adoption. In four wheelers, B2B fleet sales continue to play an important role and Building Vehicle Visibility and Utilization. In the Philippines, the VF-3 is being piloted as a police patrol vehicle in Manila. In Indonesia, we secured a wholesale order from the Borgo 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 disciplined approach to pricing as the business skills.

11:39 We also expanded our product offering with the launch of the 7-seater MPV7, followed by the soft launch of the Lima Green Taxi variant in India. At the end of the quarter, VinFast ranked as the number one BEV brand in the Philippines, No. 5 in India and No. 8 in Indonesia. Overall during the quarter, 11% of our EV deliveries was to international market. The Limo Green accounted for 23% of deliveries. The VF8 overall during the quarter, 11% of our EV deliveries was to international markets. The Limo Green accounted for 23% of deliveries.

12:27 and the VF3 and VF5 collectively accounted for 38% of deliveries. Electric 4-wheeler deliveries to related parties accounted for approximately 6% and electric 2-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.

13:17 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 disciplined international expansion and help us evaluate new markets before scaling investments. With that, I'll hand over the call to Lan Anh to review our financial results.

14:01 Thank you, Tien. Before I walk through the details, let me briefly frame the quarter and the second half outlook. We delivered strong revenue growth as vehicle volumes continued to scale while profitability remained affected by several factors, including revenue deferrals, Continue investment in our next-generation product and technology platforms. And the transition to our access line to manufacturing model in Vietnam. Following the restructuring of our Vietnam manufacturing operations, the disclosed manufacturing operations have been classified as discontinued operations, while the businesses and activities that remain within Fast are presented as continuing operations.

14:49 Accordingly, Our prior period income statements have been recast to present the results 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 6K file 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 with owning manufacturing assets, including plant-level depreciation, fixed operating costs, and financing-related expenses.

15:41 and two of our VinFast to 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 USD1.2 billion. We recorded a revenue deduction of approximately US$88 million this quarter related to the extended pre-charging program sponsored by Mr. Pham Nhat Vuoc, which is accounted for a gym contribution from the owner and a deduction from revenue. Excluding this impact, revenue would have been US$1.3 billion.

16:29 Ghosh margin was negative 62.8%. Compared with negative 21.8% in the same period last year, Ghosh 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 Nhat Vuong. Excluding the impact of the extended free-charging program, revenue deferrals, and NRV 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-over-quarter, and 65.9% year-over-year, This primarily reflects the runoff of vehicles based on our next-generation vehicle platform, EE 2.0 architecture, and ADAS technologies.

17:39 R&D represented 12.8% of revenue for the quarter, slightly lower than the same periods 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 selling expenses 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, an increase of 18.2% quarter-over-quarter and 11% year-over-year, primarily reflecting the expansion of our India and Indonesia manufacturing facilities.

18:54 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 greater localization. Adjusted EBITDA for the second quarter of 2026 was negative 1.1 billion USD compared with negative 728 million USD in the first quarter of 2026 and negative 362 million USD 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 US$678 million, with an adjusted EBITDA margin of negative 53.2%, Compare 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.

20:19 Net loss from continuing operations was approximately 1.2 billion USD. 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 deferrals, related sales programs and incentives in certain overseas markets, and NRV adjustments The net loss margin from continuing operations was 61.4% compared with 47% in the Q1 2026 and 72.3% in same periods last year. Net income from discontinued operations was approximately 1.2 billion US dollar, comprising again on disposal of 1.5 billion US dollar NASA types Partially upset by losses from discontinued operations of US$285 million prior to the disposal date. Total debt loss for the second quarter was US$56 million, representing a net loss margin of 4.7%.

21:42 Total liquidity as of 30 June 2026 stood at US$2.3 billion,

21:53 including the remaining funding commitment from Vinclub and Vinfast founder, a locked facility which remains available until 1st of 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's 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 Sport Urban Area Project represents a unique investment opportunity to add complementary earnings and cash flow stream alongside our electric mobility operations.

22:50 These actions share a common objective to create a stronger and more resilient financial foundation from which we can continue investing in VinFast's 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, Vuong Estet 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.

23:37 As that ecosystem expands, Vuong Estet creates an opportunity for Vinfast to 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 source 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-like manufacturing structure reduces the fixed cost and capital burdens of the core business while the Roi Nga State segment strengthens consolidated earnings and cash generation.

24:43 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 put Vinfast in a significantly stronger position for the next phase of development of our electric mobility platform. Operators 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.

25:35 Thank you, operator. We have the first question from the webcast regarding VinFast's long-term strategy. How do the recent changes to VinFast's 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. Kuan An, take this question. Kuan An, please.

26:06 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.

26:54 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.

27:29 Thank you, Kwannon. 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? Lan Anh, would you like to take this?

27:52 Okay. So, in the first half of 2026, we delivered around 43% of our full-year target. We expect 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 end across the many Asian markets. As you remember that in 2025, approximately 63% of our full year sales were generated in the second half.

28:37 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 growth in the remainder of the year. The new VF8 received about 12,700 pre-orders in 8 days while the VF2 received about 28,700 pre-orders with more new generation models launching from Q3.

29:30 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 BEV brand by Q2 2026, while India is also showing strong demand with over 3,000 units sold in Q2 2026.

30:33 and supported by the continuous showroom expansion, particularly in the international market 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.

31:00 Thank you. Thank you, Manon. The next question on the line is regarding our manufacturing. Internalization and increased vertical integration of 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?

31:26 So thank you for the questions, right? 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 the capabilities that are critical to our long-term competitiveness. What we have built in-house would 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.

32:15 We also continue to lead new material optimization and supply chain management were retaining long-term access to manufacturing capacity. So we continue to own and operate our plant in India and Indonesia, supporting local production and our international ambition.

32:34 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?

33:03 So the Hanoi International Spot 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 the very clear competitive advantage and the pace expansion to protect funding for our core priorities.

33:50 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?

34:11 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 Mr. Pham Nhat Vuong. The project is expected to generate substantial profits and recurring cash flows, helping offset ongoing EV business losses and strengthening Vinfast's financial position and diversifying shots of debt repayment. The direct participation as a project developer give 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 provide 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.

35:17 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.

35:28 The next question on the line is regarding, does BINFAST have any update on your break-even timeline?

35:36 Lan Anh? Yeah. There is no change in our break-even plan. We remain committed to reaching EBITDA break-even in the medium term. Vietnam is expected to be the first market to get there. Our path is supported by several levers like the first one called the BOM optimization, our most important structural driver. BOM costs for VF6 and VF7 fell by more than 20% in 2025 and we expect an average further reduction of around 10-15% over 2026-2027 as our new platforms and EE2.0 architecture scale up. The all-new VF8 shows this in practice.

36:31 It's priced at 20-30% below the previous VF8, while offering more advanced technologies, including our new EE to 4-year-old adapter, faster over-the-air updates, and upgraded ADAS features. The second legged scale, higher volumes spread fixed costs and AT&A over more vehicles, while R&D as a share of revenue declines as our platforms are shared across more models. Another one like leaner cost and capital structure, the Acelyte model reduces our DAF, financial costs, and capex intensity.

37:22 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 Jian just mentioned. This is a project to, like it's expected to bring additional earnings and cash flow from 2027. We will now proceed to take the first phone question from the line of Jesse Silverson from US Bank BTIG.

37:56 Please ask your question, Jesse. Your line is open. Hi, everyone. Thanks for taking my question. I'm just curious on liquidity at the moment. I believe some of the contracts are looking at expiry toward the end of the year. I've been also aware that there were some substantial commitments added this quarter to help fund the transactions that you reported. Could you just walk us through the plan on what liquidity looks like in the second half of this year once these contracts fall off?

38:54 Hello? Apologies if I disconnected here. Jesse? Yeah, hello?

39:16 Jesse? Hey, Jesse, can you hear us? Hi. Can you hear me now?

39:26 Yeah, we can hear you. Hey, apologies. I apologize for that. So I'm curious just on the liquidity position here. You know, I know that there are some substantial contributions in the quarter from related parties to help support the transaction of buying this real estate and I think stadium development. But I'm just curious, can we talk about the plan for these contracts and towards the end of the year, what the ideas are with... Thank you.

39:59 Thank you. Thank you for your question. Now, as we just mentioned, that the total liquidity as of the June 30, 2026, around 2.3 billion U.S. dollars, of which we have the, like Yorkville, will be available of the around 938 million U.S. dollars. And also we have the from the commitment from Chairman the Big Fast, BING Group founder and the commitment support from the BING Group around near like 1 billion US dollar and we have the cash and cash equivalent of around 281 million US dollar.

40:51 So for the liquidity beyond the support from the founders, from Vingroup and we also like have the real estate project like Gien our CIO just mentioned that contribute for the cash generation in the coming time also. Right, but everything there except for the cash and equivalents in the balance sheet expires before year-end 2026. It expires in the next two to three months. So is the plan to expand those contracts or are you looking at alternative funding sources?

41:30 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 the strong relationships we have with various international bank lenders and investors, we'll be in a position to announce something in the coming months. But as Lan Anh 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. Is the cash flow from the real estate enough to be able to entirely support the current cash flow from the business?

42:11 Based on our projection, yes. It is more, you know, 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. Yeah, thank you very much. I'll save my time. Thanks, guys. Thank you. We will now take our next question. And our next question comes from Andres Shepherd from Cantor Fitzgerald. Please go ahead, Andres. Your line is open. Hi, everyone. This is Peter on for Andres. Thank you for taking our questions and congrats on the quarter. First, can you please give us an update on autonomy, robo taxis and humanoids? What are some of the key KPIs and key catalysts that investors should be aware of?

42:58 So, autonomy is always the most important, you know, happening at Vinfast, right? So, as I mentioned during the, you know, the Indian presentation earlier, we showcased our new prototype for the little prototype earlier this month at the Vingroup Investor Tour, and this one included, you know, various new functions compared to the one that we introduced last year. You know, very proud to say that other than camera vision perception, now we work on a variety of other, you know, technology as well, including LiDAR, including, you know, radar, just to say. So for us, right, L4 is a future platform capability. And it's not, you know, seen simply as a vehicle feature.

43:48 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 and a half different L4 robot taxi in a Vinhomes development in Vietnam. So that is truly something to look forward to. About robotic, we have been working closely with a few robotic companies within the ecosystem of Vingroup and some of them already have working robots running in our main plant in Haiphong, serving 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.

44:46 Great, thank you. We'll pass it on. Thank you. We will now move to our next question. And our next question comes from Steve Silver from August Research. Please ask your question. Steve, your line is open. Thanks, operator, and thanks for taking my question. I'm interested in the top 10 market position in Indonesia, considering it's a pretty competitive marketplace there. So combined with the successful rollout in Vietnam, It's led to the leading market position there. I was hoping you could provide some color just on the drivers that are supporting the strong growth in Indonesia and perhaps any lessons learned along the way that you're applying to some of the earlier stage growth markets for EVs.

45:34 Yeah, thank you. I think for us, Indonesia is very important because it's one of the top key priority. and the early success that we have until now reflect the right decision to pick the focus market early on. Indonesia share a lot of similarity with Vietnam, you know, big population, growing population and the 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 asset-creative go-to-market strategies.

46:22 We're not only talking about the taxi company GSM or the charging company VGreen that comes with us to the country. It's also about offering initiatives like free charging or battery subscription. This is quite unique to us and something that we are really proud of. Our team also focuses a lot of B2B and corporate fleet channels. For us, Indonesia represents a big opportunity from both B2C and B2B point of view. And you probably know that this is also the country that we have the second widest product offering, including the VF3, VF5, VF6, VFE34, VF7, and most recently the Limo Green and VF MPV7.

47:09 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. Yeah, I appreciate the caller and best of luck in the second half of the year. Thank you. We will now proceed to take our next question from Brian Dobson from Clear Street LLC. Please go ahead, Brian. Your line is open.

47:54 Yeah, thanks so much for taking my question. As you look around the globe at your various markets, which areas are you most excited for in terms of, I guess, organic growth and expansion over the next two years?

48:11 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 good work that we've done so far, we need to work even harder and achieve more. 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.

49:05 Excellent, thanks very much. Thank you. There are no further questions from the phone lines at this time. I'll hand back to Amanda for webcast questions.

49:17 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?

49:32 Thank you. For the long-term trade payable, because we have the spin-off of Vinfast Trading Production, so following the spin-off, the payable for the vehicle purchased from Vinfast Trading Production are recorded as a trade payable. These payables will have been eliminated upon consolidation had the restructuring not occurred.

50:07 Thank you Lan Anh. The next question is regarding our strategy. Does Vinfast or any of its subsidiary FBAs plan to expand into new business areas such as ETC contracting, metro, energy or steel projects?

50:27 So as I mentioned before, Vinfast remains fully focused on EV as its core business. and the Ngoc Hoi project represent a unique strategic real estate opportunity to generate additional cash flow rather than a broader pivot into real estate. And we currently have no plan to expand into other business

50:47 area. Thank you, Chien. The next question is regarding the VFTP divestment. Who bears the underutilization risk after the transaction? Is VINFAST orders substantially Fewer vehicles than VFTP's available capacity. Does VinFast have minimum volume guaranteed related to other financial obligations?

51:12 So following the investment, now VFTP bears the underutilized rate and VFTP manufacturers on a cost-cut basis will be cost-enrolled to VinFast's study. The overruns capped and excess depreciation bonds by VFTP. So underutilization research is largely with VFTP. QSAR has no minimum volume commitment, capacity guarantees or other financial obligations arising solely from the ordering below VFTP's available capacity. But, you know, because we are the long-term relationship partners and as VFAST continues to grow, we currently have no plans to reduce our orders from VFTP, which remains a key manufacturing partner alongside our facilities in our international market.

52:17 The next question is regarding our expected capex. for India, Indonesia. Lara, would you like to take this?

52:26 Yeah, 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 placed in line with the demand and funding. will keep it flexible and disciplined. We do not like to disclose the plan level, utilization thresholds, or manufacturing economics for individual facilities.

53:07 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.

53:24 Okay, thank you. So as you rightly say, there's a big market gap in electric motorcycles in the country, and for two dealers, we are actually looking at other Southeast Asian markets, including Thailand and Malaysia. And for us, 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 formula, probably that is the story for 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, we remain disciplined and opportunistic for the satisfaction region.

54:14 Thank you, Chien. The next question is regarding the accounting treatment following the deconsolidation. Can you clarify the key accounting treatment for period up to Q2 2026 following the deconsolidation?

54:28 Lan Anh? Thank you. As explained and also method need our decay, the disclosed manufacturing operations have been classified as a discontinued operation while the businesses and activities that remain within fast 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 test of the 30 of June 2026 including like some key impact total external borrowing reduced by 2.9 billion US dollar and the DP&E also reduced by 2.6 billion US dollar. The inventory also reduced by 1.1 billion US dollar. Thank you.

55:43 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?

55:56 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, while 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.

56:41 Other regions outside of Asia used to represent roughly 10% of deliveries by 2030. And we continue to see strategic opportunities in those markets. Our approach is still delivery more measures and focus on segments and products where we believe we have a competitive edge. So the shift that we expect by 2030 is not necessarily Asia versus the rest of the world. It's really about Vietnam becoming You know, 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.

57:23 Thank you, Chien. Operator, that concludes our call today. Thank you. This concludes the webcast and conference call. Thank you for your participation. You may now disconnect your lines.