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  4. [6-K] VinFast Auto Ltd. Current Report (Foreign Issuer)

Massive 2025 loss and going concern risk at VinFast (NASDAQ: VFS) ahead of key AGM votes

Filing Impact
(Neutral)
Filing Sentiment
(Neutral)
Form Type
6-K

Rhea-AI Filing Summary

VinFast Auto Ltd. has called its 2026 Annual General Meeting for June 25, 2026 (ET), where shareholders will vote on director pay, auditor re-appointment, adoption of 2025 SFRS financial statements, re-election of a director, and a broad mandate to issue new shares and equity instruments.

For 2025, the Group reported revenue from contracts with customers of VND 88,612,101 million and a net loss of VND 120,055,683 million, with basic and diluted loss per share of VND 51,240. Current liabilities exceeded current assets by VND 75,859 billion, and operating cash outflows were VND 19,181,890 million, prompting auditors to highlight a material uncertainty about the Group’s ability to continue as a going concern.

Management and the board point to business plans, access to capital, and significant deemed contributions from owners, but the financial statements are prepared on a going concern basis without adjustments for potential failure of that assumption.

Positive

  • None.

Negative

  • Material going concern uncertainty: 2025 net loss of VND 120,055,683 million, negative operating cash flow of VND 19,181,890 million, and current liabilities exceeding current assets by VND 75,859 billion led auditors to highlight significant doubt about the Group’s ability to continue as a going concern.

Insights

Severe losses and liquidity pressure trigger a going concern warning.

VinFast reports a 2025 net loss of VND 120,055,683 million and negative operating cash flow of VND 19,181,890 million. Current liabilities exceed current assets by VND 75,859 billion, while accumulated losses reach VND 308,833 billion at the Group level.

Auditors from Ernst & Young LLP issued a material uncertainty paragraph on going concern, citing dependence on future funding and execution of business plans. Non-controlling interests of VND 81,541,823 million partly offset the Group’s deficit, but do not resolve structural cash needs.

The AGM includes a general mandate to issue new shares and instruments, which, if approved, would give directors flexibility to raise capital until the next AGM. Actual dilution and balance-sheet impact will depend on future issuance decisions and market conditions disclosed in subsequent filings.

Revenue from customers 2025 VND 88,612,101 million Group revenue from contracts with customers for year ended 31 December 2025
Net loss 2025 VND 120,055,683 million Group loss for the year ended 31 December 2025
Loss per share 2025 VND 51,240 per share Basic and diluted loss per ordinary share in 2025
Operating cash outflow 2025 VND 19,181,890 million Net cash flows used in operating activities for 2025
Working capital deficit VND 75,859 billion Excess of current liabilities over current assets at 31 December 2025 (Group)
Cash and equivalents VND 7,351,998 million Group cash and cash equivalents at 31 December 2025
Directors’ emoluments cap US$500,000 Proposed maximum directors’ emoluments for financial year ending 31 December 2027
Non-controlling interests VND 81,541,823 million Non-controlling interests in Group equity at 31 December 2025
going concern financial
"these events or conditions, indicate that a material uncertainty exists that may cast significant doubt on the Group and Company’s ability to continue as a going concern"
A going concern is a business that is expected to continue its operations and meet its obligations for the foreseeable future, rather than shutting down or selling off assets. This assumption matters to investors because it indicates stability and ongoing profitability, making the business a more reliable investment. Think of it as believing a restaurant will stay open and serve customers, rather than closing down suddenly.
material uncertainty financial
"these events or conditions, indicate that a material uncertainty exists that may cast significant doubt"
Singapore Financial Reporting Standards (International) financial
"audited financial statements (which have been audited and reported in accordance with the Singapore Financial Reporting Standards (International)"
A set of accounting rules used by companies in Singapore that aligns with international standards so financial statements are prepared the same way across borders. Investors use it like a common ruler and language to compare profitability, assets and risks between firms; consistent rules reduce surprises, make trends easier to spot, and improve confidence when deciding whether to buy, hold, or sell stock.
Ordinary Resolution financial
"To consider, and if thought fit, to pass the following resolution as an Ordinary Resolution"
An ordinary resolution is a decision made by shareholders at a company meeting that is approved when more than half of the votes cast are in favor. Think of it like a household vote where a majority decides routine matters — it covers everyday corporate actions such as approving directors, routine policy changes, or distributions, and matters to investors because these majority-approved choices shape governance, management authority, and the company’s near-term direction.
warranty reserve financial
"the aggregate carrying amount of the product warranty reserve included in other current liabilities and other non-current liabilities"
A warranty reserve is money a company sets aside to pay future repairs, replacements or refunds under product warranties, like a rainy-day fund for fixing problems that arise after a sale. It matters to investors because larger or growing reserves can reduce reported profits and signal higher expected product costs or quality issues, while too-small reserves can mean surprise expenses later and risk to cash flow and valuation.
Standby Equity Subscription Agreement financial
"Allocation of commitment shares issued under Standby Equity Subscription Agreement"
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Form 6-K: How Foreign Companies Report to the SEC →

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

 

FORM 6-K

 

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of June 2026

 

Commission File Number: 001-41782

 

VinFast Auto Ltd.

 

Dinh Vu – Cat Hai Economic Zone 

Cat Hai Island, Cat Hai Special Zone 

Hai Phong City, Vietnam 

(Address of principal executive office)

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.    Form 20-F  ☒  Form 40-F  ☐

 

 

 

 

 

 

INFORMATION CONTAINED IN THIS REPORT ON FORM 6-K 

 

 

The Board of Directors (the "Board") of VinFast Auto Ltd., a Singaporean private limited company (“VinFast” or the "Company"), has set June 25, 2026 at 8:30 PM (Eastern Time) / June 26, 2026, 8:30 AM (Singapore Time) as the date and time for its 2026 Annual General Meeting of Shareholders (the “Annual General Meeting”).

 

 The record date for determining shareholders entitled to receive notice of, and to vote at, the Annual General Meeting is the close of day being 11:59 PM (Eastern Time) on May 29, 2026 / 11:59 AM (Singapore Time) on May 30, 2026.

 

 In connection with the Annual General Meeting, VinFast will mail, on or about June 10, 2026, to its shareholders a proxy card, a notice of the Annual General Meeting, and, for the Company’s registered shareholders only, a proxy form, all of which are attached hereto as Exhibits 99.1, 99.2, and 99.3, respectively. These documents will contain information on how to electronically access: (i) the proxy statement, attached hereto as Exhibit 99.4; (ii) the Company’s annual report; and (iii) the audited financial statements (which have been audited and reported in accordance with the Singapore Financial Reporting Standards (International) as required under the Companies Act 1967 of Singapore) for the financial year ended December 31, 2025, together with the Auditor's Report thereon, attached hereto as Exhibit 99.5.

 

 The proxy card, attached as Exhibit 99.1 to this Report on Form 6-K, is to be completed according to the instructions set forth in the proxy statement. Holders of VinFast’s shares should review the instructions set forth in the proxy statement in order to vote their VinFast shares at the Annual General Meeting.

 

1

 

 

EXHIBIT INDEX

 

Exhibits    
99.1   Proxy Card for VinFast Auto Ltd.
99.2   Notice of Annual General Meeting of Shareholders
99.3   Proxy Form for registered shareholders related to the Annual Meeting
99.4   Proxy Statement
99.5   Audited consolidated financial statements of the Company for the financial year ended December 31, 2025 which have been prepared in conformity with the provisions of the Singapore Companies Act 1967 and the Singapore Financial Reporting Standards, accompanied by the Directors' Statement and the Auditor's Report dated May 22, 2026

 

2

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  VinFast Auto Ltd.
     
Date: June 10, 2026 By: /s/ Nguyen Thi Lan Anh
    Name:  Nguyen Thi Lan Anh
    Title: Director and Chief Financial Officer

 

3

Exhibit 99.1

 

 

 

 

Exhibit 99.2

 

 

Exhibit 99.3

 

VINFAST AUTO LTD.

(Incorporated in the Republic of Singapore)

(Company Registration No: 201501874G)

 

PROXY FORM

 

IMPORTANT: PLEASE READ THE NOTES OVERLEAF WHICH CONTAIN INSTRUCTIONS ON, INTER ALIA, THE APPOINTMENT OF A PROXY(IES).

 

I/We*, _________________________________________________________________________________ (Name), NRIC/Passport Number/Company Registration Number*_______________________________________________ of _____________________________________________________________________________________(Address) being a member/members* of VINFAST AUTO LTD. (the “Company”), hereby appoint:

 

Name NRIC/Passport No. Proportion of Shareholdings
No. of Shares %
Address    

 

and/or*

 

Name NRIC/Passport No. Proportion of Shareholdings
No. of Shares %
Address    

 

or failing the person, or either or both of the persons, referred to above, the Chairperson of the Meeting as my/our proxy/proxies to vote for me/us on my/our behalf at the annual general meeting ("AGM" or "Meeting") of the Company to be convened and held by way of electronic means on June 25, 2026, 8:30 PM (Eastern Time) / June 26, 2026, 8:30 AM (Singapore Time) and at any adjournment thereof. I/We direct my/our proxy/proxies* to vote for or against the Resolutions proposed at the Meeting as voted as indicated in the proxy card, which accompanied the notice of the 2026 AGM. If no specific direction as to voting is given, the proxy/proxies will vote or abstain from voting at his/her/their discretion, as he/she/they* will on any other matter arising at the Meeting and at any adjournment thereof.

 

 

 

 

No. Resolutions relating to: For** Against** Abstain**
ORDINARY BUSINESS
1. To approve the payment of Directors' emoluments of a total amount of up to US$500,000 for the financial year ending December 31, 2027.        
2. To re-appoint Ernst & Young LLP and Ernst & Young Vietnam Limited as the Company’s auditors for the financial year ending December 31, 2026, and to authorize the Directors to fix each of their remunerations.        
3. To receive and adopt the Directors’ Statement and Audited Financial Statements (which are reported on based on the Singapore Financial Reporting Standards (International) and the Companies Act 1967 of Singapore) for the financial year ended December 31, 2025, together with the Auditor's Report thereon.      
4. To re-elect Mr. Pham Nhat Quan Anh as a Director, who is retiring in accordance with Regulation 110 of the Constitution of the Company.      
SPECIAL BUSINESS
5.

To consider, and if thought fit, to pass the following resolution as an Ordinary Resolution:

 

"RESOLVED THAT authority be and is hereby given to the directors of the Company ("Directors") to:

 

(a)    (i) issue shares in the capital of the Company ("Shares"), whether by way of rights, bonus or otherwise; and/or (ii) make or grant offers, agreements, options, performance units, restricted share units, or other compensatory equity awards (collectively, "Instruments") that might or would require Shares to be issued, whether such issuance would occur during or after the expiration of this authority, including but not limited to the creation and issue of (as well as adjustments to) warrants, debentures, securities, rights, units, purchase contracts or other Instruments convertible into Shares, at any time and upon such terms and conditions and for such purposes and to such person(s) as the Directors may in their absolute discretion deem fit, and with such rights or restrictions as the Directors may think fit to impose and as are set forth in the Constitution of the Company; and

 

(b)    (notwithstanding that the authority conferred by the resolution of the shareholders of the Company may have ceased to be in force) issue Shares in pursuance of any Instrument made or granted by the Directors while the resolution of the shareholders is in force,

 

provided that:

 

(A)    in exercising the authority conferred by this Resolution, the Company shall comply with the provisions of the Companies Act 1967 of Singapore for the time being in force and the Constitution for the time being of the Company; and

 

(B)    (unless revoked or varied by the Company in general meeting) the authority conferred by this Resolution shall continue in force until the conclusion of the next annual general meeting of the Company or the date by which the next annual general meeting of the Company is required by law to be held, whichever is the earlier."

 

      

 

* Delete where inapplicable.

** If you wish to use all your votes “For”, “Against” or “Abstain”, please indicate with a “√” within the box provided. Otherwise, please indicate number of votes “For”, “Against” or “Abstain” for each resolution within the box provided. If you mark “√” in the “Abstain” box for a particular resolution, you are directing your proxy(ies) not to vote on that resolution.

 

Dated this day of 2026

 

   

 

 

Total number of Shares in Register of Members

 No. of Shares

 

 

 

  

 

 

 

 

Signature of Member(s)

or Common Seal of Corporate Member

 

2

 

 

VinFast Auto Ltd.

Proxy Form

 

Notes:

 

1.Please insert the total number of Shares held by you. If no number is inserted, the form of proxy shall be deemed to relate to all the Shares held by you.

 

2.A member of the Company will not be able to physically attend the AGM. Such member who wishes to exercise his/her/its voting rights at the AGM may (whether the member is an individual or a corporate): (a) appoint a proxy(ies) (other than the Chairperson of the Meeting) to vote by poll on his/her/its behalf; or (b) appoint the Chairperson of the Meeting as his/her/its proxy to vote by poll on his/her/its behalf. A proxy need not be a member of the Company.

 

3.A member who is not a relevant intermediary is entitled to appoint not more than two proxies to attend and vote at the AGM. Where such member's instrument appointing a proxy(ies) appoints more than one proxy, the proportion of shareholding concerned to be represented by each proxy shall be specified in this Proxy Form.

 

4.A proxy representing more than one member shall only count as one member for the purpose of determining the quorum of the AGM. Where a member is represented by more than one proxy, such proxies shall count as only one member for the purpose of determining the quorum of the AGM.

 

5.A member who is a relevant intermediary is entitled to appoint more than two proxies to attend and vote at the AGM, but each proxy must be appointed to exercise the rights attached to a different share or shares held by such member. Where such member's Proxy Form appoints more than two proxies, the number and class of shares in relation to which each proxy has been appointed shall be specified in the Proxy Form.

 

“Relevant intermediary” has the meaning ascribed to it in Section 181 of the Companies Act 1967 of Singapore.

 

6.A registered member who wishes to appoint a proxy to vote on his/her/its behalf at the AGM must complete and sign this Proxy Form, before depositing a hard copy (whether in person or by post) at Proxy Services c/o Continental Trust Services, 1 State Street, New York, NY USA 10004 no later than June 22, 2026, 8:30 PM (Eastern Time) / June 23, 2026, 8:30 AM (Singapore Time), being seventy-two (72) hours before the time appointed for the AGM.

 

7.If a member wishes to revoke this Proxy Form and voting instruction, such member must provide appropriate written notice to Proxy Services c/o Continental Trust Services, 1 State Street, New York, NY USA 10004, no less than seventy-two (72) hours prior to the AGM. If any person's Shares in the Company are held in "street name" through a broker, bank, nominee, or other institution, such person should contact the broker, bank, nominee, or other institution which holds their Shares in the Company to determine how to change or revoke their voting instructions.

 

8.In the case of an individual member, this Proxy Form must be signed by the appointor or his/her attorney. Where this Proxy Form is signed or authorised on behalf of the appointor by an attorney, the letter or power of attorney or a duly certified copy thereof must (failing previous registration with the Company) be lodged with this Proxy Form, failing which this Proxy Form will be treated as invalid.

 

9.Where this Proxy Form is executed by a corporation, this Proxy Form must be given under its common seal, executed as a deed in accordance with the Companies Act 1967 of Singapore or signed on its behalf by an attorney or a duly authorised officer of the corporation, or in some other manner approved by the Directors of the Company.

 

10.The Directors of the Company may, for the purposes of paragraph 8 and 9 above, designate procedures for authenticating this Proxy Form, and any such Proxy Form not so authenticated by use of such procedures shall be deemed not to have been received by the Company. The Directors of the Company may in their absolute discretion (a) approve the method and manner for an instrument appointing a proxy to be authorised; and (b) designate the procedure for authenticating an instrument appointing a proxy.

 

11.A corporation which is a member may authorise by resolution of its directors or other governing body such person as it thinks fit to act as its representative at the Meeting, in accordance with Section 179 of the Companies Act 1967 of Singapore.

 

PERSONAL DATA PRIVACY:

 

By submitting an instrument appointing a proxy(ies) and/or representative(s), the member accepts and agrees to the personal data privacy terms set out in the Notice of Annual General Meeting dated June 10, 2026.

 

GENERAL:

 

The Company shall be entitled to reject this Proxy Form if it is incomplete, improperly completed or illegible, or where the true intentions of the appointor are not ascertainable from the instructions of the appointor specified in this Proxy Form (including any related attachment).

 

3

 

Exhibit 99.4

 

 

VINFAST AUTO LTD.

(Incorporated in the Republic of Singapore)

(Company Registration Number 201501874G)

 

PROXY STATEMENT

for the

ANNUAL GENERAL MEETING

of

VINFAST AUTO LTD.

(“VinFast” or “Company”)

 

To Be Held on June 25, 2026, 8:30 PM (Eastern Time) / June 26, 2026, 8:30 AM (Singapore Time) at

https://www.cstproxy.com/vinfastauto/am2026

 

PART I – INFORMATION ABOUT THE ANNUAL GENERAL MEETING

 

We are furnishing this Proxy Statement, dated as of June 10, 2026 (the “Proxy Statement”), in connection with the solicitation by our Board of Directors (the “Board” or “Directors”, and each a “Director”) of proxies to be voted at the annual general meeting of our shareholders, to be held on June 25, 2026, 8:30 PM (Eastern Time) / June 26, 2026, 8:30 AM (Singapore Time) or at any adjournments thereof (the “AGM”), for the purposes of voting on the Resolutions to be considered at the AGM (the “Resolutions” and each, a “Resolution”), as set forth in the Notice of Annual General Meeting of Shareholders, dated as of June 10, 2026 (the “AGM Notice”). Unless the context requires otherwise, references in this Proxy Statement to “the Company”, “VinFast”, “we”, “us”, “our” and similar terms, shall mean VinFast Auto Ltd. and its subsidiaries.

 

This Proxy Statement and the AGM Notice are each being published for the benefit of all holders of VinFast ordinary shares (“VinFast Shares”) (“VinFast Shareholders”) at https://www.cstproxy.com/vinfastauto/am2026 (the “Portal”) and will be furnished to the U.S. Securities and Exchange Commission (the “SEC”) on a Report on Form 6-K. If you are a beneficial shareholder holding VinFast Shares other than in registered form as a person whose name is entered in the register of members of VinFast, you hold VinFast Shares in “street name” as, or through, a participant in the Depositary Trust Company (the “DTC”). VinFast has fixed the close of day being 11:59 PM (Eastern Time) on May 29, 2026 / 11:59 AM (Singapore Time) on May 30, 2026 (the “Record Date”), as the record date for determining whether you are entitled to receive printed copies of the Notice of AGM and whether you may access this Proxy Statement, the Audited Financial Statements (which are reported on based on the Singapore Financial Reporting Standards (International) and the Companies Act 1967 of Singapore (“Act”)) for the financial year ended December 31, 2025 (and the accompanying Directors’ Statement and the Auditor’s Report) (collectively, the “2025 SFRS Financial Statements”) and the annual report to VinFast Shareholders through the Portal.

 

The AGM Notice will be mailed to VinFast Shareholders (as of the Record Date), on or about June 10, 2026. VinFast will bear the cost of the preparation and mailing of these proxy materials and the solicitation of the proxies and will, upon request, reimburse banks, brokerage houses, other institutions, nominees, and fiduciaries for their reasonable expenses in forwarding these solicitation materials to VinFast Shareholders.

 

 

 

 

The AGM Notice will also be given by advertisement in the daily press and in writing to the NASDAQ Stock Exchange.

 

Quorum and Required Vote.

 

According to the Constitution of VinFast Auto Ltd., as amended (the “Constitution”), two VinFast Shareholders that are registered holders of shares in our Company as of the Record Date and in accordance with our Constitution (“Member”), present shall form a quorum. Such Member includes a person attending as a proxy and a corporation being a member shall be deemed to be personally present if represented in accordance with the provisions of Section 179(3) of the Act and such corporation’s representative is not otherwise entitled to be present at the meeting as a Member or proxy or as a corporate representative of another Member. A proxy representing more than one Member shall only count as one Member for the purpose of determining the quorum. Where a Member is represented by more than one proxy, such proxies shall count as only one member for the purpose of determining the quorum.

 

The affirmative vote by poll of at least a simple majority of the VinFast Shareholders (as of the Record Date) present and voting, whether in person or by proxy or by attorney and (in the case of a corporation) by a representative, is required at the AGM for the following resolutions:

 

As Ordinary Business

 

1. Ordinary Resolution 1: To approve the payment of Directors’ emoluments of a total amount of up to US$500,000 for the financial year ending December 31, 2027;

 

2. Ordinary Resolution 2: To re-appoint Ernst & Young LLP and Ernst & Young Vietnam Limited as the Company’s auditors for the financial year ending December 31, 2026, and to authorize the Directors to fix each of their remunerations;

 

3. Ordinary Resolution 3: To receive and adopt the Directors’ Statement and Audited Financial Statements (which are reported on based on the Singapore Financial Reporting Standards (International) and the Act) for the financial year ended December 31, 2025, together with the Auditor’s Report thereon;

 

4. Ordinary Resolution 4: To re-elect Mr. Pham Nhat Quan Anh as a Director, who is retiring in accordance with Regulation 110 of the Constitution of the Company; and

 

As Special Business

 

5. Ordinary Resolution 5: To consider, and if thought fit, to pass the following resolution as an Ordinary Resolution:

 

“RESOLVED THAT authority be and is hereby given to the directors of the Company (“Directors”) to:

 

(a) (i) issue shares in the capital of the Company (“Shares”), whether by way of rights, bonus or otherwise; and/or (ii) make or grant offers, agreements, options, performance units, restricted share units, or other compensatory equity awards (collectively, “Instruments”) that might or would require Shares to be issued, whether such issuance would occur during or after the expiration of this authority, including but not limited to the creation and issue of (as well as adjustments to) warrants, debentures, securities, rights, units, purchase contracts or other Instruments convertible into Shares, at any time and upon such terms and conditions and for such purposes and to such person(s) as the Directors may in their absolute discretion deem fit, and with such rights or restrictions as the Directors may think fit to impose and as are set forth in the Constitution of the Company; and

 

(b) (notwithstanding that the authority conferred by the resolution of the shareholders of the Company may have ceased to be in force) issue Shares in pursuance of any Instrument made or granted by the Directors while the resolution of the shareholders is in force,

 

provided that:

 

(A) in exercising the authority conferred by this Resolution, the Company shall comply with the provisions of the Companies Act 1967 of Singapore for the time being in force and the Constitution for the time being of the Company; and

 

(B) (unless revoked or varied by the Company in general meeting) the authority conferred by this Resolution shall continue in force until the conclusion of the next annual general meeting of the Company or the date by which the next annual general meeting of the Company is required by law to be held, whichever is the earlier;”

 

(collectively, the “Resolutions”, and each a “Resolution”).

  

2

 

 

Abstentions and Broker Non-Votes.

 

Under the laws of Singapore, abstentions and “broker non-votes” are considered present and entitled to vote for the purpose of determining whether a quorum is present at the AGM. Abstentions will not be counted in the tabulation of votes cast on a Resolution and are therefore not counted for the purposes of determining whether a Resolution has been approved.

 

A “broker non-vote” will not be counted in the tabulation of votes cast on a Resolution and is therefore not counted for the purposes of determining whether such Resolution has been approved. A “broker non-vote” occurs when a bank, broker, or other nominee holding shares on behalf of a beneficial owner does not vote on a particular Resolution in respect of the relevant ordinary shares held by it because it (i) has not received voting instructions from the beneficial owner of such ordinary shares and (ii) does not have discretionary voting power to vote as to a particular Resolution in respect of such ordinary shares.

 

Persons Entitled to Vote on the Resolutions at the AGM.

 

Registered Members of VinFast: VinFast has convened an AGM to be held on June 25, 2026 (Eastern Time) / June 26, 2026 (Singapore Time), to consider and vote upon the Resolutions. You are entitled to vote at the AGM if you are a person whose name is entered in the register of members of VinFast, holding VinFast Shares as of the Record Date. Each outstanding VinFast Share that you own as of the Record Date entitles you to one vote in a poll, and you need not use all your votes or cast all your votes you may use in the same way.

 

Beneficial Shareholders: If you hold VinFast Shares other than in registered form as a person whose name is entered in the register of members of VinFast (i.e. if you hold VinFast Shares in “street name” as, or through, a participant in the DTC), in order for your vote to be counted at the AGM, you must be a VinFast Shareholder as at the Record Date. If you have sold or transferred all of your VinFast Shares, you should immediately forward this Proxy Statement to the purchaser or transferee, or to the broker, bank, nominee, or other institution through whom the sale was effected, for onward transmission to the purchaser or transferee.

 

Manner of Voting.

 

Whether you plan to attend the AGM or not, we urge you to vote by proxy.

 

Registered Member: A person whose name is entered in the register of members of VinFast who wishes to exercise his/her/its voting rights at the AGM may (whether the member is an individual or a corporate): (a) appoint a proxy(ies) (other than the Chairperson of the Meeting) to vote by poll on his/her/its behalf; or (b) appoint the Chairperson of the Meeting as his/her/its proxy to vote by poll on his/her/its behalf. A proxy need not be a member of the Company. The Chairperson shall decline to accept appointment as proxies for any VinFast Shareholder to vote in respect of any of the Ordinary Resolutions, unless specific instructions have been given in the Proxy Form on how the VinFast Shareholder wishes for his/her/its votes to be cast in respect of the said relevant Ordinary Resolutions.

 

A person whose name is entered in the register of members of VinFast (who is not a relevant intermediary within the meaning of the Act) is entitled to appoint not more than two proxies to attend and vote at the AGM. Where such member’s instrument appointing a proxy(ies) appoints more than one proxy, the proportion of shareholding concerned to be represented by each proxy shall be specified in the Proxy Form.

 

A proxy representing more than one member shall only count as one member for the purpose of determining the quorum of the AGM. Where a member is represented by more than one proxy, such proxies shall count as only one member for the purpose of determining the quorum of the AGM.

 

A person whose name is entered in the register of members of VinFast (who is a relevant intermediary within the meaning of the Act) is entitled to appoint more than two proxies to attend and vote at the AGM, but each proxy must be appointed to exercise the rights attached to a different share or shares held by such member. Where the Proxy Form of such person whose name is entered in the register of members of VinFast appoints more than two proxies, the number and class of shares in relation to which each proxy has been appointed shall be specified in the Proxy Form.

 

A registered member who wishes to appoint a proxy to vote on his/her/its behalf at the AGM must complete and sign the Proxy Form, before depositing a hard copy (whether in person or by post) at Proxy Services c/o Continental Trust Services, 1 State Street, New York, NY USA 10004 no later than June 22, 2026, 8:30 PM (Eastern Time) / June 23, 2026, 8:30 AM (Singapore Time), being seventy-two (72) hours before the time appointed for the AGM.

 

3

 

 

In the case of an individual member, the Proxy Form must be signed by the appointor or his/her attorney. Where the Proxy Form is signed or authorised on behalf of the appointor by an attorney, the letter or power of attorney or a duly certified copy thereof must (failing previous registration with the Company) be lodged with the Proxy Form, failing which the Proxy Form will be treated as invalid.

 

Where the Proxy Form is executed by a corporation, the Proxy Form must be given under its common seal, executed as a deed in accordance with the Act or signed on its behalf by an attorney or a duly authorised officer of the corporation, or in some other manner approved by the Directors of the Company.

 

The Directors may, for the purposes of the foregoing, designate procedures for authenticating the Proxy Form, and any such Proxy Form not so authenticated by use of such procedures shall be deemed not to have been received by the Company. The Directors may in their absolute discretion (a) approve the method and manner for an instrument appointing a proxy to be authorised; and (b) designate the procedure for authenticating an instrument appointing a proxy.

 

Beneficial Shareholders: If you hold VinFast Shares other than in registered form as a person whose name is entered in the register of members of VinFast (i.e. if you hold VinFast Shares in “street name” as, or through, a participant in the DTC), you have the right to instruct your broker, bank, nominee, or other institution on how to vote the VinFast Shares in your account. Your broker, bank, nominee, or other institution will send a voting instruction form for you to use to direct how your VinFast Shares should be voted. You may not vote your VinFast Shares at the time of the virtual AGM unless you (i) obtain a legal proxy from the DTC (in compliance with the voting requirements under Singapore law) through your broker, bank, nominee, or other institution that holds your VinFast Shares, giving you the right to vote the VinFast Shares instead of the broker, bank, nominee, or other institution holding your VinFast Shares, and (ii) provide a letter or recent account statement from such broker, bank, nominee, or other institution that confirms that you are the beneficial owner of the VinFast Shares.

 

Revocation of Proxy.

 

Registered Member: If you are a “shareholder of record” (i.e., registered holder of VinFast Shares), your proxy may be revoked at any time prior to the time it is voted by providing appropriate written notice to Proxy Services c/o Continental Trust Services, 1 State Street, New York, NY USA 10004, no less than 72 hours prior to the AGM.

 

Beneficial Shareholders: If your VinFast Shares are held in “street name” through a broker, bank, nominee, or other institution, please contact the broker, bank, nominee, or other institution which holds your VinFast Shares to determine how to change or revoke your voting instructions.

 

Shareholders Communications with the Board of Directors

 

Shareholders and other interested parties wishing to communicate with our Board or with an individual member of our Board may do so by writing to the Board or to a particular director by mail to our office at 9881 Irvine Center Drive, Irvine, California 92618, Attention: Legal Team – Corporate Governance and Securities. The envelope should indicate that it contains shareholder communication. 

 

Our Legal Team will review each communication and will forward the communication, as expeditiously as reasonably practicable, to the addressees if: (1) the communication complies with the requirements of any applicable policy adopted by the Board relating to the subject matter of the communication; and (2) the communication falls within the scope of matters generally considered by the Board. To the extent the subject matter of a communication relates to matters that have been delegated by the Board to a committee or to an executive officer of the Company, then our Legal Team may forward the communication to the executive officer or chair of the committee to which the matter has been delegated. The acceptance and forwarding of communications to the members of the Board or an executive officer does not imply or create any fiduciary duty of the Board members or executive officer to the person submitting the communications. 

 

Information may be submitted confidentially and anonymously, although the Company may be obligated by law to disclose the information or identity of the person providing the information in connection with government or private legal actions and in other circumstances. The Company’s policy is not to take any adverse action, and not to tolerate any retaliation, against any person for asking questions or making good faith reports of possible violations of law, our policies, or our governance documents.

 

Mailing addresses:

Shareholder correspondence should be mailed to:

VinFast Auto Ltd.

Attention: Legal Team – Corporate Governance and Securities

9881 Irvine Center Drive

Irvine, California 92618

 

Shareholder website: ir.vinfastauto.us

Shareholder online inquiries: https://www.cstproxy.com/vinfastauto/am2026

 

Where You Can Find Additional Information

 

VinFast is subject to the reporting requirements of the U.S. Securities Exchange Act of 1934, as applicable to foreign private issuers, and, accordingly, files reports and other information with the SEC, including financial statements. VinFast’s Annual Report on Form 20-F for the financial year ended December 31, 2025 contains consolidated financial statements of VinFast under U.S. GAAP for the financial year ended December 31, 2025 and was publicly filed with the SEC and, along with VinFast’s other filings, can be found on the SEC’s website at www.sec.gov.

 

4

 

 

PART II – RESOLUTIONS TO BE CONSIDERED AT THE ANNUAL GENERAL MEETING

 

ORDINARY RESOLUTION 1

 

APPROVAL OF DIRECTORS’ EMOLUMENTS FOR THE FINANCIAL YEAR ENDING DECEMBER 31, 2027

 

Under Section 169 of the Act, a company must not at any meeting or otherwise provide emoluments or improve emoluments for a director of a company in respect of his or her office as such unless the provision is approved by a resolution that is not related to other matters and any resolution passed in breach thereof is void. Accordingly, we may only provide compensation to our Directors for services rendered in their capacity as Directors with the approval from our shareholders at a general meeting.

 

Accordingly, we are seeking the approval of shareholders for the payment of Directors’ emoluments of a total amount of up to US$500,000 for the financial year ending December 31, 2027. Such emoluments would include fees and percentages, any sums paid by way of expenses allowance insofar as those sums are charged to income tax in Singapore, any contribution paid in respect of our Directors under any pension scheme and any benefits received by our Directors otherwise than in cash in respect of his or her services as director.

 

ORDINARY RESOLUTION 2

 

APPOINTMENT OF AUDITORS AND AUTHORISATION OF THE DIRECTORS TO FIX THE REMUNERATION OF THE AUDITORS

 

ERNST & YOUNG LLP (“EY Singapore”) and ERNST & YOUNG VIETNAM LIMITED (“EY Vietnam”) served as the Company’s auditors for the financial year ended December 31, 2025.

 

The Audit Committee of our Board (the “Audit Committee”) has authorised, approved, and recommended to our Board the re-appointment of EY Singapore and EY Vietnam as the Company’s auditors for the financial year ending December 31, 2026.

 

As a result, our Board, upon such recommendation of the Audit Committee, has approved, subject to shareholders’ approval, (a) the re-appointments of each of EY Singapore and EY Vietnam for the financial year ending December 31, 2026 and (b) is requesting that the shareholders authorise the Directors (which may act through the Audit Committee) to fix the auditors’ remuneration for services rendered through the AGM.

 

ORDINARY RESOLUTION 3

 

ADOPTION OF THE 2025 SFRS FINANCIAL STATEMENTS

 

We have prepared audited financial statements that are reported on based on the Singapore Financial Reporting Standards (International) (“SFRS”) and the Act, and which have been included (together with the Directors’ Statement and the Auditor’s Report thereon) in the proxy materials to be delivered to VinFast Shareholders prior to the date of the AGM, and which will be furnished to the SEC on a Report on Form 6-K. Except as otherwise stated herein, all monetary amounts in this Proxy Statement, excepted otherwise noted, have been presented in U.S. dollars.

 

Our Board, upon recommendation of the Audit Committee, has approved, subject to shareholders’ approval, the receiving and adoption of the Directors’ Statement and the Company’s audited financial statements (under the SFRS) for the financial year ended December 31, 2025, together with the Auditor’s Report thereon.

 

ORDINARY RESOLUTION 4

 

RE-ELECTION OF MR. PHAM NHAT QUAN ANH AS A DIRECTOR OF THE BOARD

 

Mr. Pham Nhat Quan Anh was appointed as a Director of the Board in November 2025. Pursuant to Regulation 110 of the Constitution of the Company, a Director appointed by the Directors to fill a casual vacancy or as an addition to the existing Directors shall hold office only until the next annual general meeting of the Company and shall then be eligible for re-election by shareholders.

 

5

 

 

The Board has considered Mr. Pham Nhat Quan Anh’s qualifications, experience, contributions to the Company, and continued suitability to serve as a Director, and supports his re-election.

 

The Board, upon recommendation of the Nominating and Corporate Governance Committee, has approved, subject to shareholders’ approval, the re-election of Mr. Pham Nhat Quan Anh as a Director of the Board. Mr. Pham Nhat Quan Anh is a close family member of Mr. Pham Nhat Vuong.  Mr. Pham Nhat Quan Anh and Mr. Pham Nhat Vuong have abstained from voting on resolutions of the Nominating and Corporate Governance Committee and the Board in relation to the making of any recommendation on and/or approval of Mr. Pham Nhat Quan Anh’s re-election as a Director of the Board.

 

ORDINARY RESOLUTION 5


RENEWAL OF GENERAL MANDATE FOR ISSUANCE OF SHARES IN THE CAPITAL OF THE COMPANY

 

Under Section 161 of the Act, despite anything in our Constitution, our Directors must not, without the prior approval of the VinFast Shareholders in general meeting, exercise any power of the Company to issue shares.

 

We propose that VinFast Shareholders consider to, and if thought fit, pass the following resolution as an Ordinary Resolution:

 

“RESOLVED THAT authority be and is hereby given to the directors of the Company (“Directors”) to:

 

(a) (i) issue shares in the capital of the Company (“Shares”), whether by way of rights, bonus or otherwise; and/or (ii) make or grant offers, agreements, options, performance units, restricted share units, or other compensatory equity awards (collectively, “Instruments”) that might or would require Shares to be issued, whether such issuance would occur during or after the expiration of this authority, including but not limited to the creation and issue of (as well as adjustments to) warrants, debentures, securities, rights, units, purchase contracts or other Instruments convertible into Shares, at any time and upon such terms and conditions and for such purposes and to such person(s) as the Directors may in their absolute discretion deem fit, and with such rights or restrictions as the Directors may think fit to impose and as are set forth in the Constitution of the Company; and

 

(b) (notwithstanding that the authority conferred by the resolution of the shareholders of the Company may have ceased to be in force) issue Shares in pursuance of any Instrument made or granted by the Directors while the resolution of the Shareholders is in force,

 

provided that:

 

(A) in exercising the authority conferred by this Resolution, the Company shall comply with the provisions of the Companies Act 1967 for the time being in force and the Constitution for the time being of the Company; and

 

(B) (unless revoked or varied by the Company in general meeting) the authority conferred by this Resolution shall continue in force until the conclusion of the next annual general meeting of the Company or the date by which the next annual general meeting of the Company is required by law to be held, whichever is the earliest.”

 

If this Resolution is approved, and unless revoked or varied by the Company in general meeting from time to time, the Directors would be authorised to issue shares and other Instruments under this mandate from the date of this AGM and until the earlier of (i) the conclusion of the annual general meeting commencing next after the date on which this approval is given; or (ii) the expiration of the period within the next annual general meeting after that date is required by applicable law to be held, whichever is earlier.

 

If this Resolution is not approved, we would not be permitted to issue any new shares in the capital of the Company in connection with any future transactions, or any Instruments, which include agreements, of which have not been entered into prior to the expiry of our current mandate on June 25, 2026, 8:30 PM (Eastern Time) / June 26, 2026, 8:30 AM (Singapore Time), unless specific approval of VinFast Shareholders is obtained.

 

Caution Concerning Forward-Looking Statements

 

This Proxy Statement contains forward-looking statements that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this proxy statement, including statements regarding our company or our future financial position, business strategy and plans, and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions. Forward-looking statements include, without limitation, our expectations concerning the outlook for our business, productivity, plans, and goals for future operational improvements and capital investments, operational performance, future market conditions, economic performance, and developments in the capital and credit markets and expected future financial performance, as well as any information concerning possible or assumed future results of operations of our company as set forth in the sections of this Proxy Statement.

 

These forward-looking statements are subject to several risks and uncertainties, many of which are beyond VinFast’s control, which could cause a material difference from what is indicated in such forward-looking statements. Such risks include risks relating to the authorizations sought herein and other risks and factors, including those risks set forth under the heading “Risk Factors” in VinFast’s most recent Annual Report on Form 20-F filed with the SEC and other filings. Except as required by law, VinFast undertakes no obligation to update these forward-looking statements, whether as a result of new information, future events, or otherwise.

 

6

 

Exhibit 99.5

 

 

 

 

VinFast Auto Ltd.

and its subsidiaries

Company Registration No:
201501874G

Annual Financial Statements
31 December 2025  

 

 

 

 

 

 

 

 

 

 

 

 

VinFast Auto Ltd. and its subsidiaries

 

Contents

 

    Pages
Directors’ statement   1 – 5
Independent auditor’s report   6 - 11
Statements of profit or loss   12
Statements of comprehensive income   13
Statements of financial position   14 – 15
Statements of changes in equity   16 - 18
Consolidated statement of cash flows   19 – 20
Notes to the financial statements   21 - 134

 

 

VinFast Auto Ltd. and its subsidiaries

 

Directors’ Statement

 

The directors hereby present their statement to the members together with the audited consolidated financial statements of VinFast Auto Ltd. (the “Company”) and its subsidiaries (collectively, the “Group”) for the financial year ended 31 December 2025.

 

Opinion of the directors

 

In the opinion of the directors,

 

(a)the consolidated financial statements of the Group and the statement of financial position, statement of profit or loss and statement of comprehensive income of the Company are drawn up so as to give a true and fair view of the financial position of the Group and of the Company as at 31 December 2025, and the financial performance, changes in equity and cash flows of the Group and the financial performance and changes in equity of the Company for the year ended on that date, and

 

(b)at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they fall due as the immediate holding company has agreed to provide financial support for the Company to meet its liabilities as and when they fall due.

 

Directors

 

The directors of the Company in office at the date of this statement are:

 

Pham Nhat Vuong  
Pham Nhat Quan Anh (Appointed on November 2025)
Le Thi Thu Thuy  
Ling Chung Yee, Roy  
Tham Chee Soon  
Nguyen Thi Van Trinh  
Nguyen Thi Lan Anh  

 

- 1 -

 

VinFast Auto Ltd. and its subsidiaries

 

Directors’ Statement

 

Arrangements to enable directors to acquire shares and debentures

 

Neither at the end of nor at any time during the financial year was the Company a party to any arrangement whose objects are, or one of whose objects is, to enable the directors of the Company to acquire benefits by means of the acquisition of shares or debentures of the Company or any other body corporate, other than as disclosed under “Restricted Share Units" below

 

Restricted Share Units (“RSUs”)

 

Certain awards under the Incentive Award Plan (the “Scheme”) for employees of the Group was approved by Board of Directors of the Company at the Directors’ Resolution on 27 March 2024 and amended as after on 07 July 2025. Under the Scheme, RSUs are granted to the Company’s employees with different vesting dates.

 

During 2025, 700,000 RSUs were granted to Ms. Le Thi Thu Thuy, a director of the Company (for clarity, such RSUs were granted to Ms. Le Thi Thu Thuy in her capacity as an employee of the Company). It comprises the following:

 

Director  RSUs
granted
during the
year		   Vesting Date
        
Le Thi Thu Thuy   700,000   07 July 2025
TOTAL   700,000    

 

- 2 -

 

VinFast Auto Ltd. and its subsidiaries

 

Directors’ Statement

 

Directors’ interests in shares and debentures

 

The following directors, who held office at the end of the financial year, had, according to the register of directors' shareholdings required to be kept under Section 164 of the Singapore Companies Act 1967, an interest in shares of the Company and related corporations (other than wholly owned subsidiary corporations) as stated below:

 

   Direct interests   Indirect interests 
   At the
beginning of
financial
year or date
of
appointment
if later		   At the end
of financial
year		   At the
beginning of
financial
year or date
of
appointment
if later		   At the end
of financial
year		 
                 
Holding company                
Vingroup JSC                
Pham Nhat Vuong   691,274,400    703,848,781    170,610,525    341,221,050 
Le Thi Thu Thuy   1,834,017    1,000,034    -    - 
Pham Nhat Quan Anh (*)   150,000    300,000    -    - 
                     
Subsidiaries                    
VinFast Trading and Production JSC (“VinFast Vietnam”)                    
Pham Nhat Vuong   2,464,612    471,206    -    - 
Pham Nhat Quan Anh (*)   2,464,612    471,206    -    - 
                     
VinFast Auto India Private Limited                    
Nguyen Thi Van Trinh   1    1    -    - 
                     
PT VinFast Automobile Indonesia                    
Nguyen Thi Van Trinh   10    10    -    - 
                     
VinFast Auto Philippines, Corp.                    
Nguyen Thi Van Trinh   -    1    -    - 
                     
VinFast Investment and Development Joint Stock Company                    
Pham Nhat Vuong   60,238    60,238    -    - 
Pham Nhat Quan Anh (*)   60,238    60,238    -    - 
                     
Related companies                    
Vingroup Investment Pte Ltd                    
Nguyen Thi Van Trinh   50,000    50,000    -    - 

 

- 3 -

 

VinFast Auto Ltd. and its subsidiaries

 

Directors’ Statement

 

Directors’ interests in shares and debentures (cont’d)

 

   Direct interests   Indirect interests 
   At the
beginning of
financial
year or date
of
appointment
if later		   At the end
of financial
year		   At the
beginning of
financial
year or date
of
appointment
if later		   At the end
of financial
year		 
VinES Energy Solutions Joint Stock Company                
Pham Nhat Vuong   -    -    -    - 
                     
Vinhomes Joint Stock Company                    
Le Thi Thu Thuy   29,948    790,000    -    - 
                     
VinRobotics Robot Application and Research Development Joint Stock Company                    
Pham Nhat Vuong   39,000,000    39,000,000    -    - 
Pham Nhat Quan Anh (*)   5,000,000    5,000,000    -    - 
                     
VinMotion General Purpose Humanoid Robots Application, Development and Research Joint Stock Company                    
Pham Nhat Vuong   -    39,000,000    -    - 
Pham Nhat Quan Anh (*)   5,000,000    5,000,000    -    - 
                     
VinDynamics Humanoid Robot Research, Development and Application Joint Stock Company                    
Pham Nhat Vuong   -    19,500,000    -    - 
Pham Nhat Quan Anh (*)   2,500,000    2,500,000    -    - 
                     
VinMetal Trading and Production Joint Stock Company                    
Pham Nhat Quan Anh (*)   15,000,000    15,000,000    -    - 
                     
Vin New Horizon Joint Stock Company                    
Pham Nhat Vuong   -    -    -    32,000,000 
Pham Nhat Quan Anh (*)   -    -    1,000,000    1,000,000 

 

(*) Mr. Pham Nhat Quan Anh was appointed as member of Board of Directors since November 2025

 

As they are holding shares in Vingroup JSC, Pham Nhat Vuong, Le Thi Thu Thuy and Pham Nhat Quan Anh are deemed to have interest in Vingroup JSC’s subsidiaries.

 

- 4 -

 

VinFast Auto Ltd. and its subsidiaries

 

Directors’ Statement

 

Options

 

During the financial year, no shares of the Company were allotted and issued by virtue of the exercise of options to take up unissued shares of the Company. There were no unissued shares of the Company or its subsidiaries under option at the end of the financial year.

 

Auditor

 

Ernst & Young LLP have expressed their willingness to accept re-appointment as auditor.

 

Le Thi Thu Thuy

Director

 

Nguyen Thi Lan Anh

Director

 

Singapore

22 May 2026

 

- 5 -

 

VinFast Auto Ltd. and its subsidiaries

 

Independent auditor’s report

For the financial year ended 31 December 2025

 

Independent auditor’s report to the members of VinFast Auto Ltd.

 

 

Report on the audit of the financial statements

 

Opinion

 

We have audited the financial statements of VinFast Auto Ltd. (the “Company”) and its subsidiaries (collectively, the “Group”), which comprise the consolidated statement of financial position of the Group and the statement of financial position of the Company as at 31 December 2025, the consolidated statement of profit or loss, consolidated statement of comprehensive income, consolidated statement of changes in equity and the consolidated statement of cash flows of the Group and the statement of profit or loss, statement of comprehensive income and statement of changes in equity of the Company for the year then ended, and notes to the financial statements, including material accounting policy information.

 

In our opinion, the accompanying consolidated financial statements of the Group, and the financial statements of the Company are properly drawn up in accordance with the provisions of the Singapore Companies Act 1967 (the “Act”) and Financial Reporting Standards in Singapore ("FRSs") so as to give a true and fair view of the consolidated financial position of the Group and the financial position of the Company as at 31 December 2025 and of the consolidated financial performance, consolidated changes in equity and consolidated cashflows of the Group and of the financial performance and changes in equity of the Company for the year ended on that date.

 

Basis for opinion

 

We conducted our audit in accordance with Singapore Standards on Auditing ("SSAs"). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Group in accordance with the Accounting and Corporate Regulatory Authority ("ACRA") Code of Professional Conduct and Ethics for Public Accountants and Accounting Entities ("ACRA Code"), as applicable to audits of financial statements of public interest entities, together with the ethical requirements that are relevant to audits of the financial statements of public interest entities in Singapore. We have also fulfilled our other ethical responsibilities in accordance with these requirements and the ACRA Code. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

 

Material uncertainty related to going concern

 

We draw attention to Note 2.1 of the financial statements, which indicates that the Group incurred a net loss of VND120,056 billion during the year ended 31 December 2025 and, as of that date, the Group and Company’s current liabilities exceeded its current assets by VND75,859 billion and VND35,439 billion respectively. As stated in Note 2.1, these events or conditions, indicate that a material uncertainty exists that may cast significant doubt on the Group and Company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

 

If the Group and Company is unable to continue in operational existence for the foreseeable future, the Group and Company may be unable to discharge its liabilities in the normal course of business and adjustments may have to be made to reflect the situation that assets may need to be realised other than in the normal course of business and at amounts which could differ significantly from the amounts at which they are currently recorded in the statements of financial position. In addition, the Group and Company may have to reclassify non-current assets and liabilities as current assets and liabilities. No such adjustments have been made to these financial statements.

 

- 6 -

 

VinFast Auto Ltd. and its subsidiaries

 

Independent auditor’s report

For the financial year ended 31 December 2025

 

Independent auditor’s report to the members of VinFast Auto Ltd.

 

 

Key Audit Matters

 

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial statements of the current reporting year. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. For each matter below, our description of how our audit addressed the matter is provided in that context.

 

We have fulfilled our responsibilities described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.

 

Impairment of property, plant and equipment, intangible assets, right-of-use assets and investment in subsidiaries

 

As described in Note 2.19 to the consolidated financial statements, the Group evaluates the recoverability of its long-lived assets, including property, plant and equipment, intangible assets with finite lives and right-of-use assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be fully recoverable. As of 31 December 2025, long-lived assets included property, plant and equipment amounting to VND47,503,735 million, intangible assets amounting to VND20,628,231 million and right-of use assets amounting to VND6,006,629 million, of which the Vietnam automotive asset group represented a significant part of the aggregate balance. During the year, impairment losses amounting to a total of VND34,171,629 million was recorded as disclosed in Notes 10, 11 and 23.

 

The Company also evaluates the recoverability of its investment in subsidiaries with operations in Vietnam which are carried at VND22,960,571 million for any impairment or reversal of impairment indicators. During the year, the Company recorded a write-back of impairment losses of VND9,632,930 million mainly due to a restructuring as disclosed in Note 6 and 29.1.

 

The recoverable amounts of the Vietnam automotive asset group and investment in subsidiaries with operations in Vietnam were estimated by management based on their fair value less costs of disposal, determined using an income approach. This valuation approach is based on a discounted cash flow method that relies on management’s projection of future cash flows to be generated and application of an appropriate discount rate. The development of key assumptions underlying these projections, including revenue growth (comprising sale volume and sale price) and gross margin improvements, and discount rate required management to exercise significant judgment and are subject to uncertainties arising from the economic environments and markets the Group and Company operate in. Accordingly, we have identified this as a key audit matter.

 

- 7 -

 

VinFast Auto Ltd. and its subsidiaries

 

Independent auditor’s report

For the financial year ended 31 December 2025

 

Independent auditor’s report to the members of VinFast Auto Ltd.

 

 

Key Audit Matters (cont’d)

 

Impairment of property, plant and equipment, intangible assets, right-of-use assets and investment in subsidiaries (cont’d)

 

Our audit procedures included, among others:

 

●obtaining an understanding of management’s process in their determination of recoverable amounts of its long-lived assets and investment in subsidiaries

 

●testing management approved cash flows including the determination of key assumptions with regards to revenue growth, gross margin improvements and discount rates;

 

●assessing the appropriateness of the methodologies used and assessed the reasonableness of key assumptions by comparing them against the Group’s business strategies and taking into consideration current industry and economic trends, as well as historical results;

 

●assessing the historical accuracy of management’s estimates and performed sensitivity analysis of key assumptions to evaluate the changes in the cash flows that would result from changes in the assumptions;

 

●involving valuation specialists in evaluating the reasonableness of certain aspects of management’s assumptions related to the overall method, sale price and discount rate;

 

●reviewing the results of the impairment assessment performed by management by comparing the carrying values of the long-lived assets and investment in subsidiaries to their respective recoverable amounts and checked management’s computation in recognising impairment losses when their carrying amounts exceeded the recoverable amounts or recognizing reversals where recoverable amounts exceed the carrying amounts; and

 

●assessing the adequacy of the Group’s related disclosures in Notes 2.19, 10, 11, 23 and 29.1 to the consolidated financial statements with respect to the impairment of long-lived assets and investment in subsidiaries.

 

Warranty reserve

 

As of 31 December 2025, the aggregate carrying amount of the product warranty reserve included in other current liabilities and other non-current liabilities in the consolidated statement of financial position amounted to VND18,153,443 million. As disclosed in Note 2.14 to the consolidated financial statements, the Group provides manufacturer’s warranty on all new vehicles at the time of vehicle sale. The Group accrues a product warranty reserve for the vehicles sold, based on the best estimate of projected costs to repair or replace. Management engaged an independent actuary expert to assist them in the determination of warranty reserve for vehicles. These estimates are primarily based on the estimation of the frequency and average costs of claims. Given the relatively short history of sales, management’s historical experience with product warranty claims is limited. As these estimates are subject to significant estimation uncertainty, and changes to the projected warranty experience may cause material changes to the warranty provisions, we have identified this as a key audit matter.

 

- 8 -

 

VinFast Auto Ltd. and its subsidiaries

 

Independent auditor’s report

For the financial year ended 31 December 2025

 

Independent auditor’s report to the members of VinFast Auto Ltd.

 

 

Key Audit Matters (cont’d)

 

Warranty reserves (cont’d)

 

Our audit procedures included, among others: 

 

●evaluating the Company’s estimation methodology, the related significant assumptions and performing tests of actual claims; 

 

●involving professionals with specialised skills and knowledge to assist in evaluating the reasonableness of management’s estimate by developing an independent estimate of the product warranty reserve and comparing the independent estimate to management’s estimate;

 

●developing the independent estimate involved evaluating the appropriateness of management’s significant assumptions related to the frequency and average cost of future claims with the limited actual historical experience has with product warranty claims; and 

 

●assessing the adequacy of the Group’s related disclosures in notes 2.14 and 18 to the consolidated financial statements with respect to the warranty reserve.

 

Other information

 

Management is responsible for the other information. The other information comprises the Directors' Statement but does not include the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.

 

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

 

Responsibilities of management and directors for the financial statements

 

Management is responsible for the preparation of financial statements that give a true and fair view in accordance with the provisions of the Act and FRSs, and for devising and maintaining a system of internal accounting controls sufficient to provide a reasonable assurance that assets are safeguarded against loss from unauthorised use or disposition; and transactions are properly authorised and that they are recorded as necessary to permit the preparation of true and fair financial statements and to

maintain accountability of assets.

 

In preparing the financial statements, management is responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so.

 

The Directors’ responsibilities include overseeing the Group’s financial reporting process.

 

- 9 -

 

VinFast Auto Ltd. and its subsidiaries

 

Independent auditor’s report

For the financial year ended 31 December 2025

 

Independent auditor’s report to the members of VinFast Auto Ltd.

 

 

Auditor’s responsibilities for the audit of the financial statements

 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SSAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

As part of an audit in accordance with SSAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

 

●Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

 

●Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group’s internal control.

 

●Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

 

●Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

 

●Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

 

●Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.

 

- 10 -

 

VinFast Auto Ltd. and its subsidiaries

 

Independent auditor’s report

For the financial year ended 31 December 2025

 

Independent auditor’s report to the members of VinFast Auto Ltd.

 

 

Auditor’s responsibilities for the audit of the financial statements (cont’d)

 

We communicate with the directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

 

We also provide the directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied.

 

From the matters communicated with the directors, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.

 

Report on other legal and regulatory requirements

 

In our opinion, the accounting and other records required by the Act to be kept by the Company have been properly kept in accordance with the provisions of the Act.

 

The engagement partner on the audit resulting in this independent auditor’s report is Phua Chun Yen Alvin.

 

Ernst & Young LLP

Public Accountants and

Chartered Accountants

Singapore

 

22 May 2026

 

- 11 -

 

VinFast Auto Ltd. and its subsidiaries

 

Statements of profit or loss

For the financial year ended 31 December 2025

 

      Group   Company 
   Note  2025   2024   2025   2024 
      VND million   VND million   VND million   VND million 
                    
Revenue from contracts with customers  8.1   88,612,101    42,650,450    –    – 
Revenue from leasing activities  23   1,403,709    1,660,920    –    – 
Cost of sales  8.2   (133,800,824)   (73,571,390)   –    – 
                        
Gross loss      (43,785,014)   (29,260,020)   –    – 
Other operating income  8.3   748,551    396,182    –    – 
Selling and distribution expenses  8.4   (6,446,648)   (7,252,323)   –    – 
Administrative expenses  8.5   (42,984,055)   (10,918,496)   (503,977)   (648,457)
Other operating expenses  8.6   (1,920,517)   (3,378,011)   –    – 
                        
Operating loss      (94,387,683)   (50,412,668)   (503,977)   (648,457)
                        
Finance income  8.7   391,571    395,771    20,044,326    505,183 
Finance costs  8.8   (22,712,883)   (20,008,744)   (903,162)   (1,040,752)
Net (loss)/gain on financial instruments at fair value through profit or loss      (3,017,050)   (3,183,030)   5,675,960    103,187 
Share of losses from equity investees      (106,093)   (48,836)   –    – 
Reversal of/(impairment) on investment in subsidiaries, net  29.1   –    –    9,596,951    (10,800,000)
                        
(Loss)/profit before tax      (119,832,138)   (73,257,507)   33,910,098    (11,880,839)
Income tax expense  9   (223,545)   (49,027)   (12)   (183)
                        
(Loss)/profit for the year      (120,055,683)   (73,306,534)   33,910,086    (11,881,022)
                        
Attributable to:                       
Equity holders of the parent      (119,857,494)   (73,212,746)          
Non-controlling interests      (198,189)   (93,788)          

 

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

 

- 12 -

 

VinFast Auto Ltd. and its subsidiaries

 

Statements of comprehensive income

For the financial year ended 31 December 2025

 

      Group   Company 
   Note  2025   2024   2025   2024 
      VND million   VND million   VND million   VND million 
                    
(Loss)/profit for the year     (120,055,683)   (73,306,534)   33,910,086    (11,881,022)
                        
Other comprehensive income                       
Other comprehensive income that may be reclassified to profit or loss in subsequent periods (net of tax):                       
Exchange differences on translation of foreign operations      (110,601)   (111,713)   –    – 
                        
Other comprehensive income for the year, net of tax      (110,601)   (111,713)   –    – 
                        
Total comprehensive income for the year, net of tax      (120,166,284)   (73,418,247)   33,910,086    (11,881,022)
                        
Attributable to:                       
Equity holders of the parent      (119,968,095)   (73,324,459)         
Non-controlling interests      (198,189)   (93,788)         
                        
Net loss per share attributable to ordinary shareholders                       
Basic and diluted  28   (51,240)   (31,309)         
                        
Weighted average number of shares used in loss per share computation                       
Basic and diluted  28   2,339,145,514    2,338,415,230          

 

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

 

- 13 -

 

VinFast Auto Ltd. and its subsidiaries

 

Statements of financial position

As at 31 December 2025

 

      Group   Company 
   Note  2025   2024   2025   2024 
      VND million   VND million   VND million   VND million 
ASSETS                   
                    
Non-current assets                   
Property, plant and equipment  10   47,503,735    59,818,606    19    30 
Intangible assets  11   20,628,231    31,270,698    10,467    11,467 
Long-term financial assets at fair value through profit or loss  25.1   387,503    –    –    – 
Investment in equity investees  7   1,060,009    1,166,102    –    – 
Right-of-use assets  23   6,006,629    4,669,841    –    – 
Investment in subsidiaries  29.1   –    –    34,610,741    20,657,925 
Other long-term investments  25.3   5,817,000    918,040    –    – 
Other non-current assets  12   2,243,247    1,715,709    –    – 
Non-current net investment in the lease  23   855,384    1,560,075    –    – 
Amounts due from related parties  29.3   54,843    3,630    2,989,878    – 
Prepayments  16   76,392    692,456    35,552    75,304 
Long-term trade receivables  15.2   563,512    615,650    –    – 
                        
Total non-current assets      85,196,485    102,430,807    37,646,657    20,744,726 
                        
Current assets                       
Inventories  14   38,174,374    28,986,205    –    – 
Short-term trade receivables  15.1   4,670,062    5,605,044    –    – 
Advances to suppliers  13   11,865,953    8,694,990    –    – 
Short-term financial assets at fair value through profit or loss  25.1   –    185,787    –    – 
Short-term amounts due from related parties  29.3   8,491,889    4,272,121    4,571,667    3,540,656 
Current net investment in lease  23   82,343    165,980    –    – 
Short-term prepayments and other receivables  16   14,668,773    13,704,689    4,674    5,636 
Short-term investments  25.1   3,051,790    823,597    –    – 
Cash and cash equivalents  17   7,351,998    3,306,793    124,425    85,044 
Assets held for sale      511,018    226,380    –    – 
                        
Total current assets      88,868,200    65,971,586    4,700,766    3,631,336 
                        
TOTAL ASSETS      174,064,685    168,402,393    42,347,423    24,376,062 
                        
EQUITY AND LIABILITIES                       
                        
Equity                       
Share capital  28   10,226,655    10,164,467    10,226,655    10,164,467 
Other reserves  28   117,065,223    26,849,103    (89,357)   (46,944)
Foreign currency translation reserves      (545,561)   (434,960)   –    – 
Accumulated losses      (308,832,947)   (188,975,453)   (28,865,385)   (62,775,471)
                        
Deficit attributable to equity holders of the parent      (182,086,630)   (152,396,843)   (18,728,087)   (52,657,948)
Non-controlling interests      81,541,823    69,807,945    –    – 
                        
Total deficit      (100,544,807)   (82,588,898)   (18,728,087)   (52,657,948)

 

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

 

- 14 -

 

VinFast Auto Ltd. and its subsidiaries

 

Statements of financial position (cont’d)

As at 31 December 2025

 

      Group   Company 
   Note  2025   2024   2025   2024 
      VND million   VND million   VND million   VND million 
EQUITY AND LIABILITIES (cont’d)                   
                    
Non-current liabilities                   
Interest-bearing loans and borrowings  21   47,548,228    22,862,890    10,818,036    2,325,417 
Long-term financial liabilities at fair value through profit or loss  25.2   13,064    36,326    13,064    36,326 
Deferred revenue  20   4,272,339    2,932,327    –    – 
Deferred tax liabilities  9.2   855,409    631,014    –    – 
Other non-current liabilities  18.2   17,502,086    4,433,689    –    – 
Long-term government grants  18.4   –    1,892,983    –    – 
Accruals      2,857,928    329,267    –    – 
Long-term amounts due to related parties  29.3   29,711,485    40,531,203    10,104,465    – 
Long-term lease liabilities  23   7,121,835    5,909,108    –    – 
                        
Total non-current liabilities      109,882,374    79,558,807    20,935,565    2,361,743 
                        
Current liabilities                       
Interest-bearing loans and borrowings  21   34,615,936    39,124,086    1,319,460    3,970,656 
Short-term financial liabilities at fair value through profit or loss  25.2   24,426,683    21,619,612    38,577,604    20,500,000 
Trade payables      32,630,360    20,791,192    36,210    – 
Deposits and downpayment from customers  19   1,987,433    3,565,463    –    – 
Deferred revenue  20   122,324    147,786    –    – 
Accruals  22   18,521,007    11,032,804    162,086    211,111 
Other current liabilities  18.1   14,012,269    9,511,534    –    – 
Short-term government grants  18.4   2,093,808    –    –    – 
Short-term amounts due to related parties  29.3   34,942,775    64,126,981    44,585    49,990,500 
Short-term lease liabilities  23   1,374,523    1,513,026    –    – 
                        
Total current liabilities      164,727,118    171,432,484    40,139,945    74,672,267 
                        
TOTAL LIABILITIES      274,609,492    250,991,291    61,075,510    77,034,010 
                        
TOTAL EQUITY AND LIABILITIES      174,064,685    168,402,393    42,347,423    24,376,062 

 

The accompanying accounting policies and explanatory notes form an integral part of the financial statements

 

- 15 -

 

VinFast Auto Ltd. and its subsidiaries

 

Statements of changes in equity

For the financial year ended 31 December 2025

 

For the year ended 31 December 2025 of the Group:

 

   Share
capital		   Other
reserves		   Foreign
currency
translation
reserves		   Accumulated
losses		   Non-controlling
interests		   Total equity 
   VND million   VND million   VND million   VND million   VND million   VND million 
                         
As at 1 January 2025   10,164,467    26,849,103    (434,960)   (188,975,453)   69,807,945    (82,588,898)
                               
Loss for the year   –    –    –    (119,857,494)   (198,189)   (120,055,683)
Foreign currency translation adjustments   –    –    (110,601)   –    –    (110,601)
                               
Total comprehensive income for the financial year   –    –    (110,601)   (119,857,494)   (198,189)   (120,166,284)
                               
Share based payment to employees (Note 28)   62,135    (133)   –    –    –    62,002 
Allocation of commitment shares issued under Standby Equity Subscription Agreement   –    (42,280)   –    –    –    (42,280)
Deemed contribution from owners (i)   –    23,000,173    –    –    –    23,000,173 
Change in terms of previously issued Dividend Preferred Shares (Note 26.2)   –    26,466,103    –    –    (26,466,103)   – 
Issuance of new Dividend Preference Share (DPS) – DPS 5 (Note 26.2)   –    –    –    –    40,000,000    40,000,000 
Spin-off of Novatech (Note 6)   –    40,792,257    –    –    (1,601,846)   39,190,411 
Others (Note 28)   53    –    –    –    16    69 
                               
As at 31 December 2025   10,226,655    117,065,223    (545,561)   (308,832,947)   81,541,823    (100,544,807)

 

(i)This represents financial support in the form of cash injected into the Group from Mr. Pham Nhat Vuong, the Managing Director and CEO of the Company (“Mr. Pham”), being recognised in the statements of changes in equity.

 

The accompanying accounting policies and explanatory notes form an integral part of the financial statements

 

- 16 -

 

VinFast Auto Ltd. and its subsidiaries

 

Statements of changes in equity (cont’d)

For the financial year ended 31 December 2025

 

For the year ended 31 December 2024 of the Group:

 

   Share
capital		   Other
reserves		   Foreign
currency
translation
reserves		   Accumulated
losses		   Non-controlling
interests		   Total equity 
   VND million   VND million   VND million   VND million   VND million   VND million 
                         
As at 1 January 2024   10,029,207    (30,765,403)   (323,247)   (115,738,460)   77,368,478    (59,429,425)
                               
Loss for the year   –    –    –    (73,212,746)   (93,788)   (73,306,534)
Foreign currency translation adjustments   –    –    (111,713)   –    –    (111,713)
                               
Total comprehensive income for the financial year   –    –    (111,713)   (73,212,746)   (93,788)   (73,418,247)
                               
Share based payment to employees   115,629    –    –    –    –    115,629 
Share based payment to service providers   19,631    –    –    –    –    19,631 
Allocation of commitment shares issued under Standby Equity Subscription Agreement   –    (40,416)   –    –    –    (40,416)
Issuance of new Dividend Preference Share (DPS) – DPS 5 (Note 26.2)   –    –    –    –    20,000,000    20,000,000 
Change in terms of previously issued Dividend Preferred Shares (Note 26.2)   –    27,498,417    –    –    (27,498,417)   – 
Deemed contribution from owner through free
electric charging offered to customers		   –    5,900,756    –    –    –    5,900,756 
Deemed contribution from owners   –    24,255,749    –    –    7,425    24,263,174 
Changes in ownership in existing subsidiaries without losing control   –    –    –    (24,247)   24,247    – 
                               
As at 31 December 2024   10,164,467    26,849,103    (434,960)   (188,975,453)   69,807,945    (82,588,898)

 

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

 

- 17 -

 

VinFast Auto Ltd. and its subsidiaries

 

Statements of changes in equity (cont’d)

For the financial year ended 31 December 2025

 

For the years ended 31 December 2025 and 2024 of the Company:

 

   Share
capital		   Other
reserves		   Accumulated
losses		   Total equity 
   VND million   VND million   VND million   VND million 
                 
As at 1 January 2025   10,164,467    (46,944)   (62,775,471)   (52,657,948)
                     
Profit for the year, representing total comprehensive income for the financial year   –    –    33,910,086    33,910,086 
                     
Warrants exercised and additional paid to convert into capital                    
Share based payment to employees   62,135    (133)   –    62,002 
Allocation of commitment shares issued under Standby Equity Subscription Agreement   –    (42,280)   –    (42,280)
Others   53    –    –    53 
                     
As at 31 December 2025   10,226,655    (89,357)   (28,865,385)   (18,728,087)
                     
As at 1 January 2024   10,029,207    (6,528)   (50,894,449)   (40,871,770)
                     
Loss for the year, representing total comprehensive income for the financial year   –    –    (11,881,022)   (11,881,022)
                     
Share based payment to employees   115,629    –    –    115,629 
Share based payment to service providers   19,631    –    –    19,631 
Allocation of commitment shares issued under Standby Equity Subscription Agreement   –    (40,416)   –    (40,416)
                     
As at 31 December 2024   10,164,467    (46,944)   (62,775,471)   (52,657,948)

 

The accompanying accounting policies and explanatory notes form an integral part of the financial statements

 

- 18 -

 

VinFast Auto Ltd. and its subsidiaries

 

Consolidated statement of cash flows

For the financial year ended 31 December 2025

 

      Group 
   Note  2025   2024 
      VND million   VND millions 
            
OPERATING ACTIVITIES           
Loss before tax      (119,832,138)   (73,257,507)
Adjustments to reconcile loss before tax to net cash flows:             
Depreciation of property, plant and equipment (i)      8,354,622    7,232,631 
Amortisation of intangible assets (i)      6,958,384    4,553,908 
Impairment of property, plant and equipment, intangible assets and right-of-use assets  10, 11, 23   34,171,629    3,267,446 
Depreciation of right-of-use assets (i)  23   934,034    961,284 
Provision related to net realisable value of inventories      3,953,886    8,443,935 
Provision related to assurance-type warranties      17,875,350    4,045,573 
Provision related to compensation and other provisions      2,261,738    2,478,366 
Unrealised foreign exchange (gains)/losses      (435,022)   1,000,508 
Net loss on financial asset designated at fair value through profit or loss      3,017,050    3,183,030 
Finance income  8.7   (391,571)   (395,771)
Finance cost      18,921,142    15,966,477 
Finance cost on lease liabilities  23   941,970    1,155,283 
Shares of losses from equity investees      106,093    48,836 
Change in amortised costs of financial instruments measured at amortised cost      2,849,771    2,886,984 
Loss on disposal and write-offs of property, plant and equipment and intangible assets      1,309,131    1,060,289 
Deemed contribution from owner through free electric charging offered to customers  29   –    5,900,756 
Others      118,219    135,260 
              
Working capital adjustments:             
Trade receivables, advance to suppliers, net investment in sales-type lease      (1,312,338)   (6,443,891)
Inventories      (12,396,470)   (5,441,921)
Trade payables, deferred revenues, and other payables      14,278,077    15,268,337 
Prepayments, other receivables and other assets      (810,267)   (3,946,012)
Income tax paid      (55,180)   (11,636)
              
Net cash flows used in operating activities      (19,181,890)   (11,907,835)
              
INVESTING ACTIVITIES             
Purchase of property, plant and equipment and intangible assets (including deposit paid under construction contracts and development expenditure)      (32,001,371)   (27,661,966)
Proceeds from disposal of other property, plant and equipment      567,271    54,832 
Payment under investment cooperation and business opportunity exploration agreement      (5,395,000)   – 
Disbursement of loans to external parties and bank deposit      (3,405,270)   (856,630)
Disbursement of loans to related parties      (10,491)   (2,320,000)
Collection of bank deposit      815,000    17,594 
Collection of loans to related parties      –    2,320,000 
Acquisition of a subsidiary (net of cash acquired)      –    (10,252)
Disposal of equity investments (net of cash disposed)      –    (20,000)
Proceeds from interest      104,062    291,428 
Receipt from government grants      151,161    1,477,914 
              
Net cash flows used in investing activities      (39,174,638)   (26,707,080)

 

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

 

- 19 -

 

VinFast Auto Ltd. and its subsidiaries

 

Consolidated statement of cash flows (cont’d)

For the financial year ended 31 December 2025

 

      Group 
   Note  2025   2024 
      VND million   VND million 
FINANCING ACTIVITIES           
Capital contribution from owners      16    – 
Deemed contribution from owners  29   63,529,820    21,994,658 
Cash of the acquired subsidiary      –    215,323 
Proceeds for converting warrants to capital      53    – 
Proceeds from borrowings from external parties      64,582,395    36,173,922 
Proceeds from borrowings from related parties      41,497,937    62,431,898 
Repayment of borrowings from external parties      (45,720,034)   (59,721,852)
Repayment of borrowings from related parties      (46,710,903)   (12,155,053)
Payment of principal and interest on lease liabilities  23   (1,672,954)   (1,536,412)
Interest paid      (13,189,286)   (9,371,333)
              
Net cash flows generated from financing activities      62,317,044    38,031,151 
              
Net increase in cash, cash equivalents      3,960,516    (583,764)
Cash, cash equivalents at 1 January      3,306,793    4,002,272 
Net foreign exchange difference      84,689    (111,715)
              
Cash and cash equivalents at 31 December  17   7,351,998    3,306,793 
Supplement disclosures of non-cash activities             
Debt conversion to equity      40,000,000    20,000,000 
Allocation of Commitment shares issued under Standby Equity Subscription Agreement      42,280    40,556 
Establishment and termination of right-of-use assets and lease liabilities at commencement dates      2,786,243    (530,856)
Non-cash property, plant and equipment additions      6,776,018    5,005,740 
Netting of licensing payable against receivable from Novatech Research and Development JSC      23,400,314    – 

 

(i) Depreciation and amortisation expense has been charged as follows:

 

2025   Property,
plant and
equipment
(Note 10)		     Intangible
assets
 (Note 11)		     Right-of-use
assets
 (Note 23)		     Total  
    VND million     VND million     VND million     VND million  
Depreciation/amortisation charged to Profit or Loss     8,354,622       6,958,384       934,034       16,247,040  
Depreciation/amortisation charged to Inventories     70,477       196,924       –       267,401  
                                 
TOTAL     8,425,099       7,155,308       934,034       16,514,441  

 

2024   Property,
plant and
equipment
(Note 10)		     Intangible
assets
 (Note 11)		     Right-of-use
assets
(Note 23)		     Total  
    VND million     VND million     VND million     VND million  
Depreciation/amortisation charged to Profit or Loss     7,232,631       4,553,908       961,284       12,747,823  
Depreciation/amortisation charged to Inventories     235,722       157,279       47,353       440,354  
                                 
TOTAL     7,468,353       4,711,187       1,008,637       13,188,177  

 

The accompanying accounting policies and explanatory notes form an integral part of the financial statements.

 

- 20 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements

For the financial year ended 31 December 2025

 

1.CORPORATE INFORMATION

 

The principal activities of the Company and its subsidiaries (hereinafter collectively referred to as the “Group”) are to manufacture cars, motor vehicles, render leasing activities and related businesses.

 

The Company’s head office is located at 61 Robinson Road #06-01 (Suite 608), 61 Robinson, Singapore 068893. Head office of VinFast Vietnam, a subsidiary of the Company, is located at Dinh Vu - Cat Hai Economic Zone, Cat Hai Island, Cat Hai town, Cat Hai district, Hai Phong city, Vietnam.

 

Corporate structure

 

The Group consists of the following entities as at the reporting date:  

 

No.   Name   Short name   Structure as at 31 December
2025		   Structure as at 31 December
2024		   Registered office’s address   Principal activities
  Voting right (%) Equity interest (%)   Voting right (%) Equity interest (%)        
1   VinFast Auto Ltd.   VinFast Auto   – –   – –   61 Robinson Road #06-01 (Suite 608), 61 Robinson, Singapore 068893   Investment holding
2   VinFast Trading and Production JSC   VinFast Vietnam   99.9 99.9   99.9 99.9   Dinh Vu – Cat Hai Economic Zone, Cat Hai Island, Cat Hai Special Zone, Hai Phong City, Vietnam   Manufacturing cars, motor vehicles, render leasing activities and related businesses
3   VinFast Commercial and Services Trading LLC   VinFast Trading   99.5 99.4   99.5 99.4   No. 7, Bang Lang 1 Street, Vinhomes Riverside, Phuc Loi Ward, Hanoi, Vietnam   Vehicles retail and distribution

 

- 21 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

1.CORPORATE INFORMATION (CONT’D)

 

Corporate structure (cont’d)

 

The Group consists of the following entities as at the reporting date: (cont’d)

  

No.   Name   Short name   Structure as at 31 December
2025		   Structure as at 31 December
2024		   Registered office’s address   Principal activities
  Voting right (%) Equity interest (%)   Voting right (%) Equity interest (%)        
4   VinFast Germany GmbH   VinFast Germany   100.0 99.9   100.0 99.9   Kornmarktarkaden, Bethmannstraße 8/Berliner Straße 51 – 60311 Frankfurt am Main, Germany   Trading, importing and exporting equipment, components and spare parts for automobiles, e-scooters and related goods
5   VinFast Engineering Australia Pty Ltd (*)   VinFast Australia   100.0 99.9   100.0 99.9   Unit 3, 419 Bay Street, Brighton VIC 3186, Australia   Automobile designing, collaborating in technological research, importing and distributing goods
6   Vingroup Investment Vietnam JSC   Vingroup Investment   99.3 99.2   99.3 99.2   No. 7, Bang Lang 1 Street, Vinhomes Riverside, Phuc Loi Ward, Hanoi, Vietnam   Consultancy and investment activities
7   Vingroup USA, LLC   Vingroup USA   100.0 100.0   100.0 100.0   251 Little Falls Drive, Wilmington, DE, 19808, USA   Importing and distributing electronic and telecommunication equipment
8   VinFast USA Distribution, LLC   VinFast USA Distribution   100.0 100.0   100.0 100.0   251 Little Falls Drive, Wilmington, DE, 19808, USA   Distribution of automotive vehicles
9   VinFast Auto, LLC   VinFast Auto, LLC   100.0 100.0   100.0 100.0   251 Little Falls Drive, Wilmington, DE, 19808, USA   Distribution of automotive vehicles
10   VinFast Auto Canada Inc.   VinFast Auto Canada   100.0 99.2   100.0 99.2  

1133 Melville Street Suite 3500, The Stack, Vancouver, BC V6E 4E5, Canada

   Distribution of automotive vehicles

 

- 22 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

1.CORPORATE INFORMATION (CONT’D)

 

Corporate structure (cont’d)

 

The Group consists of the following entities as at the reporting date: (cont’d)

 

No.   Name   Short name   Structure as at 31 December
2025		   Structure as at 31 December
2024		   Registered office’s address   Principal activities
      Voting right (%) Equity interest (%)   Voting right (%) Equity interest (%)        
11   VinFast France   VinFast France   100.0 99.2   100.0 99.2   72 rue du Faubourg Saint Honoré, Paris, 75008 France   Distribution of automotive vehicles
12   VinFast Netherlands B.V   VinFast Netherlands   100.0 99.2   100.0 99.2   Raadhuisstraat 32, 1016 DG Amsterdam, Netherlands   Distribution of automotive vehicles
13   VinFast Manufacturing US, LLC (***)   VinFast Manufacturing   100.0 100.0   100.0 100.0   1686 VinFast Drive Moncure, North Carolina 27559 Chatham County, USA   Vehicles manufacturing.
14   PT VinFast Automobile Indonesia   VinFast Indo   100.0 99.4   100.0 99.6   Axa Tower, 45th Floor, JL. Prof. Dr. Satrio Kav 18., Karet Kuningan Village/Subdistrict, District. Setiabudi, City Adm. Jakarta South, DKI Jakarta Province.   Manufacturing and distribution of automotive vehicles
15   PT VinFast Trading Indonesia   VinFast Trading Indo   99.0 98.4   99.0 98.6   Axa Tower, 45th Floor, JL. Prof. Dr. Satrio Kav 18., Karet Kuningan Village/Subdistrict, District. Setiabudi, City Adm. Jakarta South, DKI Jakarta Province.   Distribution of automotive vehicles
16   VinFast Auto (Thailand) Co., Ltd. (*)   VinFast Thailand   99.9 99.9   99.9 99.9   No. 425/1, Enco Terminal Building B, 4th Floor, Kamphaeng Phet 6 Road, Don Mueang District, Don Mueang Subdistrict, Bangkok, Thailand   Distribution of automotive vehicles

 

- 23 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

1.CORPORATE INFORMATION (CONT’D)

 

Corporate structure (cont’d)

 

The Group consists of the following entities as at the reporting date: (cont’d)

 

No.   Name   Short name   Structure as at 31 December
2025		   Structure as at 31 December
2024		   Registered office’s address   Principal activities
  Voting right (%) Equity interest (%)   Voting right (%) Equity interest (%)        
17   VinFast Auto India Private Limited.   VinFast India   100.0 99.3   99.9 99.9   1st Floor, Urbanwrk, The Statement Baani, Golf Course Road, Sector 43, DLF QE, Gurgaon, Haryana, 122002, India   Vehicles manufacturing and related businesses.
18   VinFast UK Ltd. (*)   VinFast UK   100.0 100.0   100.0 100.0   21 Holborn Viaduct, London, United Kingdom, EC1A 2DY   Distribution of automotive vehicles
19   VinFast Middle East FZE.   VinFast Middle East   100.0 100.0   100.0 100.0   Jebel Ali Free Zone, Dubai, UAE   Distribution of automotive vehicles
20   VinFast Investment and Development JSC   VinFast Invesment and Development   99.9 99.9   99.9 99.9   Dinh Vu – Cat Hai Economic Zone, Cat Hai Island, Cat Hai Special Zone, Hai Phong City, Vietnam   Supporting and investing in newly established companies
21   VinEG Green Energy Solutions JSC   VinEG   99.8 99.7   99.8 99.7   Dinh Vu – Cat Hai Economic Zone, Cat Hai Island, Cat Hai Special Zone, Hai Phong City, Vietnam   Manufacturing batteries
22   VinES Ha Tinh Energy Solution JSC   VinES Ha Tinh   99.8 99.5   99.8 99.5   Vung Ang Economic Zone, Vung Ang Ward, Ha Tinh Province, Vietnam   Manufacturing batteries
23   VinES USA, LLC (**)   VinES USA   100.0 99.7   100.0 99.7   850 New Burton Road, Suite 201, Dover, Delaware 19904, County of Kent   Sale and leasing of batteries and other related services

 

 

- 24 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

1.CORPORATE INFORMATION (CONT’D)

 

Corporate structure (cont’d)

 

The Group consists of the following entities as at the reporting date: (cont’d)

 

No.   Name   Short name   Structure as at 31 December 2025   Structure as at 31 December 2024   Registered office’s address   Principal activities
  Voting right (%) Equity interest (%)   Voting right (%) Equity interest (%)        
24   VinFast Kazakhstan LLP. (*)   VinFast Kazakhstan   100.0 100.0   100.0 100.0   10 Yelebekov Street, Medeu District, Almaty City, Kazakhstan   Distribution of automotive vehicles
25   VinFast Auto Nigeria Ltd. (**)   VinFast Nigeria   - -   100.0 100.0   01, 2nd Floor, Block B, Post Square Building, 1/3 Ologun Agbaje Street, Victoria Island, Lagos State, Nigeria   Distribution of automotive vehicles
26   VinFast Auto Philippines Corp.   VinFast Philippines   99.9 99.9   99.9 99.9   Unti 1603 Capital House, 9th Avenue corner Lane S, Bonifacio Global City, Taguig City 1634, Philippines   Distribution of automotive vehicles
27   VinFast Auto México, S. DE R.L. DE C.V. (*)   VinFast Mexico   99.9 99.9   99.9 99.9   Street: Bosque de Ciruelos| Ext Number: 180| Int Number: PP101| Suburb: Bosque de las Lomas| County: Miguel Hidalgo| State: Mexico City| Zip Code: 11700   Distribution of automotive vehicles

`

(*) As at the reporting date, these entities’ operation are at idle stage.

(**) As at the reporting date, these entities have completed or are in the process of completing the business dissolution procedures for this subsidiary.

(***) As at the reporting date, this entity is at factory construction stage.

 

- 25 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION

 

2.1Basis of preparation

 

The consolidated financial statements have been prepared in accordance with Singapore Financial Reporting Standards (“FRSs”).

 

For the purposes of these consolidated financial statements, the Group comprises of legal entities principally operating in the automotive manufacturing and related businesses and being included under VinFast Auto Ltd.

 

The financial statements have been prepared on a historical cost basis, except for equity instruments and derivatives which are carried at fair value and financial assets and financial liabilities which are carried at amortised cost. Detailed disclosures on measurement are provided in the material accounting policy information. These policies have been consistently applied to all of the reporting periods presented, unless stated otherwise. For the purpose of preparing the consolidated and stand-alone financial statements, all amounts are rounded to the nearest million and presented in Vietnamese Dong million (‘‘VND million”).

 

Going concern basis of accounting

 

In accordance with FRS 1, the Group has evaluated whether there are conditions and events, considered in the aggregate, that raise substantial doubt about the Group’s ability to continue as a going concern within one year after the date that the consolidated financial statements are issued.

 

The Group has incurred losses since inception and incurred a net loss after tax of VND120,056 billion for the year ended 31 December 2025 (2024: VND73,307 billion). In addition, as of that date, the Group and Company’s accumulated losses amounted to VND308,833 billion (2024: VND188,975 billion) and VND28,865 billion (2024: VND62,775 billion), respectively, the Group and Company’s current liabilities also exceeded its current assets by VND75,859 billion (2024: VND105,461 billion) and VND35,439 billion (2024: VND71,041 billion), respectively, and the Group’s cash flows from operating activities were negative with the amount of VND19,182 billion for the year ended 31 December 2025 (2024: VND 11,908 billion). The Group prepares business plans over the next 12 months, which includes business expansion and revenue from new geographies for revenue growth and achieving gross margin improvements to minimise net cash outflows.

 

- 26 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.1Basis of preparation (cont’d)

 

Going concern basis of accounting (cont’d)

 

As an early-stage growth company, the Group's ability to access capital is critical. As of 31 December 2025, the Group’s principal sources of liquidity are its consolidated balance of cash and cash equivalent with amount of VND7,352 billion, and its access to capital, which includes:

 

(i)Financial support from Vingroup JSC, its ultimate parent, which shall be legally valid for the period of 12 months from the issuance date of the consolidated financial statements, which is subjected to Vingroup JSC’s financial capability, and additional debt financing, which is subjected to lenders’ approval.

 

(ii)On 20 October 2023, the Company entered into a three-year Standby Equity Subscription Agreement (the “SESA”) with Yorkville. Under terms of the SESA, the Company may, at its option, issue and sell from time to time up to $1 billion of ordinary shares to Yorkville, subject to certain limitations, such as the market price of the Company’s ordinary stock, the availability of sufficient authorised ordinary shares, and Yorkville’s financial capability to subscribe for such number of ordinary shares.

 

(iii)On 12 November 2024, the Company entered into the Grant Agreement with its Director, Vietnam Investment Group Joint Stock Company (“VIG”) and Asian Star Trading & Investment PTE.LTD. (“Asian Star”), in which, Mr. Pham, directly or indirectly through VIG, Asian Star or other companies majority-owned or controlled by Mr. Pham, shall use legitimate sources, including but not limited to proceeds from the sale of the Company’s shares, to give the grants to the Group. The ability to access the grants is dependent on the market price of the Company’s ordinary stock and the availability of sufficient authorised ordinary shares.

 

The Group’s principal sources of liquidity and its access to capital cannot be assured due to uncertainties as discussed above, and as a result cannot be included as sources of liquidity for FRS 1 analysis.

 

If capital is not available to the Group when, and in the amounts needed, the Group would be required to delay, scale back, or abandon some or all of its development programs and operations. These conditions and events raise material uncertainty about the Group's ability to continue as a going concern through the next twelve months from the date of issuance of these consolidated financial statements.

 

The consolidated financial statements are prepared in accordance with FRSs which are applicable to going concern. These consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Operating segments

 

FRS 108 Operating segments, establishes standards to report in consolidated financial statements information about operating segments, products, services, geographic areas, and major customers.

 

The Chief Operating Decision Maker monitors each segment’s performance for the purpose of making decisions on resource allocation and performance assessment. Based on the criteria established by FRS 108, the Group has three operating segments which are also reportable segments, namely Car, E-scooters and Ebus.

 

- 27 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.2Basis of consolidation

 

The consolidated financial statements comprise the financial statements of the Company and its subsidiaries as at 31 December 2025 and for the year then ended. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee. Specifically, the Group controls an investee if, and only if, it has:

 

-Power over the investee (i.e., existing rights that give it the current ability to direct the relevant activities of the investee)

 

-Exposure, or rights, to variable returns from its involvement with the investee

 

-The ability to use its power over the investee to affect its returns.

 

Generally, there is a presumption that a majority of voting rights results in control. To support this presumption and when the Group has less than a majority of the voting or similar rights of an investee, the Group considers all relevant facts and circumstances in assessing whether it has power over an investee, including:

 

-The contractual arrangement(s) with the other voting holders of the investee

 

-Rights arising from other contractual arrangements

 

-The Group’s voting rights and potential voting rights

 

The Group re-assesses whether it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control. Consolidation of a subsidiary begins when the Group obtains control over the subsidiary and ceases when the Group loses control over the subsidiary. Assets, liabilities, income, and expenses of a subsidiary acquired or disposed during the year are included in the consolidated financial statements from the date the Group gains control until the date the Group ceases to control the subsidiary.

 

Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity holders of the parent of the Group and to the non-controlling interests, even if this results in the non-controlling interests having a deficit balance. When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies in line with the Group’s accounting policies. All intra-group assets, liabilities, equity, income, expenses, and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

 

A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity transaction.

 

If the Group loses control over a subsidiary, it derecognises the related assets (including goodwill), liabilities, non-controlling interest, and other components of equity, while any resultant gain or loss is recognised in the consolidated statement of profit or loss. Any retained investment is recognised at fair value. Any difference resulting from the remeasurement of the investment retained is recognised in the consolidated statement of profit or loss.

 

- 28 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.3Business combinations and goodwill

 

Business combinations, other than business combination under common control, are accounted for using the acquisition method. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value, and the amount of any non-controlling interests in the acquiree. For each business combination, the Group elects to measure the non-controlling interests in the acquiree at the proportionate share of the acquiree’s identifiable net assets at acquisition date. Acquisition-related costs are expensed as incurred and included in administrative expenses.

 

The Group determines that they have acquired a business when the acquired set of activities and assets include an input and a substantive process that together significantly contribute to the ability to create outputs. The acquired process is considered substantive if it is critical to the ability to continue producing outputs, and the inputs acquired include an organised workforce with the necessary skills, knowledge, or experience to perform that process or it significantly contributes to the ability to continue producing outputs and is considered unique or scarce or cannot be replaced without significant cost, effort, or delay in the ability to continue producing outputs.

 

When the Group acquires a business, it assesses the financial assets and liabilities assumed for appropriate classification and designation in accordance with the contractual terms, economic circumstances and pertinent conditions as at the acquisition date. This includes the separation of embedded derivatives in host contracts by the acquiree.

 

Goodwill is initially measured at cost (being the excess of the aggregate of the consideration transferred and the amount recognised for non-controlling interests and any previous interest held over the net identifiable assets acquired and liabilities assumed). If the fair value of the net assets acquired is in excess of the aggregate consideration transferred, the Group re-assess whether they have correctly identified all of the assets acquired and all of the liabilities assumed and review the procedures used to measure the amounts to be recognised at the acquisition date. If the reassessment still results in an excess of the fair value of net assets acquired over the aggregate consideration transferred, then the gain is recognised in the consolidated statements of profit or loss.

 

After initial recognition, goodwill is measured at cost less any accumulated impairment losses. For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each of the Group’s cash-generating units that are expected to benefit from the combination, irrespective of whether other assets or liabilities of the acquiree is assigned to those units.

 

Reorganisation involving entities under common control

 

Reorganisation involving entities under common control are accounted for as follows:

 

-The assets and liabilities of the consolidated entities are reflected at the amounts reflected in the parent’s consolidated financial statements at the date of the reorganisation;

 

-The consolidated statements of profit or loss reflects the results of the consolidated entities from the date of the reorganisation; and

 

-No goodwill is recognised from the reorganisation. Any difference between the consideration paid and the net assets of the acquiree is recorded as part of the “Other reserves” account in the consolidated statements of changes in equity.

 

- 29 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.4Fair value measurement

 

The Group measures financial instruments such as derivatives, at fair value at each statement of financial position date.

 

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

 

-In the principal market for the asset or liability; or

 

-In the absence of a principal market, in the most advantageous market for the asset or liability.

 

The principal or the most advantageous market must be accessible by the Group.

 

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

 

A fair value measurement of a non-financial asset takes into account a market participant's ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

 

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

 

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

 

-Level 1 – Quoted (unadjusted) market prices in active markets for identical assets or liabilities;

 

-Level 2 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable;

 

-Level 3 – Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.o

 

For assets and liabilities that are recognised in the financial statements at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

 

- 30 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.5Revenue recognition

 

Sales of vehicles (automobiles, e-scooters)

 

The Group identifies the individuals, distributors and the commercial banking partner/leasing company who purchase the vehicles as the customers in the contracts for sales of automobiles and e-scooters produced by the Group. At the inception of each contract, the Group assesses whether it is probable that substantially all of the consideration to which it is entitled in exchange for the goods or services transferred will be collected. Where the Group determines at contract inception that collectability is not probable, revenue is not recognised. The Group shall continue to assess the contract to determine whether the criteria for revenue recognition are subsequently met in accordance with FRS 115.

 

Contracts with customers may include lease and non-lease components, comprising various performance obligations. Accordingly, the Group allocates its purchase consideration among lease (where applicable) and non-lease components, based on the relative estimated standalone selling price in accordance with FRS 115. The sale of vehicles can be bundled with the sale of battery or the lease of battery (Note 2.15). In case of the lease of battery, variable lease payments of the battery leases are also allocated to the lease components and non-lease components on the same basis.

 

The Group generally determines standalone selling prices based on observable price of the goods and services – i.e., actual selling prices charged to customers for vehicles are the prices charged to customers. If the standalone selling price is not directly observable, it is estimated using appropriate data that reflects the amount of consideration to which the Group expects to be entitled in exchange for transferring the promised goods or services to the customer. Assumptions and estimations have been made in estimating the relative selling price of each distinct performance obligation and the lease component (where applicable), and changes in judgements on these assumptions and estimates may impact the revenue recognition. The allocated purchase consideration for the sales of vehicles (including sales of battery where applicable) is recognised in revenue at the point in time when control of the vehicles is transferred to the customers, usually upon the delivery of the vehicles.

 

The Group also provides extended warranty (“service-type warranty”) in addition to the manufacturer’s warranty (“assurance-type warranty”) for general repairs of defects that existed at the time of sale, which are accounted for in accordance with FRS 37 Provisions, Contingent Liabilities and Contingent Assets, and the estimated costs are recorded as a liability when control of the vehicle is transferred to the customer (Note 2.14). The Group will recognise the revenue for service-type warranty over time based on a straight-line method initially and will continue to monitor the cost pattern periodically and adjust the revenue recognition pattern to reflect the actual cost pattern as it becomes available.

 

The consideration recognised represents the amount received, net of consideration payable to customers that the Group reasonably expects to pay. Taxes assessed by various government entities, such as special consumption and value-added taxes, collected at the time of the vehicle sale are excluded from net sales and revenue.

 

In certain circumstances, the Group arranges for third parties to provide goods or services to customers. In such arrangements, the Group determines that it does not control the specified goods or services before transfer and therefore acts as an agent, revenue is recognised on a net basis, representing the amount of any commission or fee to which the Group is entitled in exchange for arranging the goods or services to be provided by the third party.

 

- 31 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.5Revenue recognition (cont’d)

 

Sales of vehicles (automobiles, e-scooters) (cont’d)

 

Free charging program

 

In 2024, the Company launched the “Vietnam Strong Spirit – For Green Future” program, offering free charging services for its EV users. The free charging program will continue until 30 June 2027 or until 31 December 2027 if a customer purchase EVs with battery before 1 March 2025. Under the program, Mr. Pham is responsible for paying battery charging costs for all eligible sales until 31 December 2024. The Company estimated the costs under the free charging program to be funded by Mr. Pham to be approximately VND5,900.8 billion based on historical charging data, and accounted for this as a deemed contribution from the owner in its financial statements for the year ended 31 December 2024. Subsequent to 31 December 2024, the Company will be responsible for such payment to V-Green and amounts payable are accrued for as disclosed in Note 22. The Company acts as an agent in facilitating free charging service to its customers.

 

Vehicle Sales with Residual Value Guarantee (“RVG”)

 

Vietnam, and other Asian markets

 

The Group has residual value guarantee (“RVG”) programs in Vietnam, Indonesia and Philippines, whereby the Group has the choice to repurchase VinFast electric vehicles from customers after a specified number of years of use at certain predetermined prices based on the duration of ownership. Alternatively, the Group may choose to compensate for the differential between the amounts recovered by the customer when sold to other third parties and the pre-determined price. If the customers choose to sell to a third party prior to VinFast’s refusal, they are not entitled to the RVG and VinFast is not obligated to pay the above-mentioned difference.

 

The Group accounts for the program in accordance with FRS 115 Revenue from Contracts with Customers. Accordingly, the Group first bifurcates the RVG at its fair value from the transaction price and accounts for it as a guarantee liability. The residual amount of transaction price is allocated among performance obligations.

 

US and Canadian market

 

The Group provides RVG to its commercial banking partner/leasing company in connection with its vehicle leasing programs. Under these programs, the Group originates the lease with end customer and immediately transfer the lease and the underlying vehicle to commercial banking partner/leasing company and the Group is contractually obligated (or entitled) to bear the shortfall (or excess) between the resale value realised by the commercial banking partner/leasing company and a predetermined resale value. At the lease inception, the Group is required to deposit cash collateral equal to a contractual percentage of the residual value of the leased vehicles with the commercial banking partner/leasing company. The cash collateral is held in a restricted bank account owned by the commercial banking partner until it is used, as applicable, in settlement of the RVG at the end of the lease term. Cash collateral is recorded in other noncurrent assets, subject to asset impairment review at each reporting period.

 

- 32 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.5Revenue recognition (cont’d)

 

Sales of vehicles (automobiles, e-scooters) (cont’d)

 

US and Canadian market (cont’d)

 

The Group accounts for the vehicle leasing programs in accordance with FRS 116 Leases and FRS 115. Accordingly, the Group first bifurcates the RVG at its fair value from the transaction price and accounts for it as a guarantee liability. The residual amount of transaction price is allocated among performance obligations.

 

The guarantee liability represents the estimated amount the Group expects to pay. The Group incorporates information such as third-party residual value publications and risk of future price deterioration due to changes in market conditions in estimation of the estimated residual value guarantee liability.

 

Other Revenue and Services

 

Other goods (merchandise, spare parts and components)

 

Sales of merchandise, spare parts and components to distributors and customers are recognised as revenue at the point in time when control of the goods is transferred to the distributor or the customer, usually upon the delivery of the merchandise, spare parts and components.

 

Rendering of services

 

Revenue from rendering of services, which mainly comprise of aftersales services and charging services, and is recognised over time based on the stage of work completion as the outcome of all contracts can be reasonably ascertained.

 

Sales of regulatory credits

 

Sales of regulatory credits represent revenue generated from the transfer of regulatory credits earned through the production and sale of electric vehicles, and is recognised at a point in time when control of the regulatory credits is transferred to the customer.

 

Contract balances under FRS 115

 

Trade receivables

 

A receivable is recognised if an amount of consideration that is unconditional is due from the customer (i.e., only the passage of time is required before payment of the consideration is due).

 

Contract liabilities

 

A contract liability is recognised if a payment is received, or a payment is due (whichever is earlier) from a customer before the Group transfers the related goods or services. Contract liabilities are recognised as revenue when the Group performs under the contract (i.e., transfers control of the related goods or services to the customer).

 

- 33 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.6Taxes

 

Current income tax

 

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted at the reporting date in the countries where the Group operates and generates taxable income.

 

Current income tax relating to items recognised directly in equity is recognised in equity and not in the consolidated statements of profit or loss. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

 

Deferred tax

 

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

 

Deferred tax liabilities are recognised for all taxable temporary differences, except:

 

-When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;

 

-In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

 

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilised, except:

 

-When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss;

 

-In respect of deductible temporary differences associated with investments in subsidiaries, associates and interests in joint arrangements, deferred tax assets are recognised only to the extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the temporary differences can be utilised.

 

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

 

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

 

- 34 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.6Taxes (cont’d)

 

Deferred tax (cont’d)

 

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss. Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

 

Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition at that date, are recognised subsequently if new information about facts and circumstances change. The adjustment is either treated as a reduction in goodwill (as long as it does not exceed goodwill) if it was incurred during the measurement period or recognised in profit or loss.

 

The Group offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

 

Value added tax

 

Expenses and assets are recognised net of the amount of value added tax, except:

 

-When the value added tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the value added tax is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable;

 

-When receivables and payables are stated with the amount of value added tax included.

 

The net amount of value added tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Consolidated statements of financial position.

 

- 35 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.7Foreign currencies

 

The consolidated financial statements are presented in Vietnamese dong (“VND”). For each entity, the Group determines the functional currency and items included in the financial statements of each entity are measured using that functional currency. The functional currency of the Company is VND.

 

Transactions in foreign currencies are initially recorded by the Group’s entities at their respective functional currency spot rates at the date the transaction first qualifies for recognition. Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency spot rates of exchange at the reporting date. Differences arising on settlement or translation of monetary items are recognised in the consolidated statements of profit or loss.

 

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a foreign currency are translated using the exchange rates at the date when the fair value is determined. The gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the recognition of the gain or loss on the change in fair value of the item.

 

In determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which the Group initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, the Group determines the transaction date for each payment or receipt of advance consideration.

 

The assets and liabilities of foreign operations are translated into VND at the rate of exchange prevailing at the reporting date and their statements of profit or loss are translated at monthly average functional exchange rates. The exchange differences arising on translation for combination are recognised in other components of equity in the consolidated statements of changes in equity.

 

2.8Non-current assets held for sale

 

The Group classifies non-current assets and disposal groups as held for sale if their carrying amounts will be recovered principally through a sale transaction rather than through continuing use. Non-current assets and disposal groups classified as held for sale are measured at the lower of their carrying amount and fair value less costs to sell. Costs to sell are the incremental costs directly attributable to the disposal of an asset (disposal group), excluding finance costs and income tax expense.

 

The criteria for held for sale classification is regarded as met only when the sale is highly probable, and the asset or disposal group is available for immediate sale in its present condition. Actions required to complete the sale should indicate that it is unlikely that significant changes to the sale will be made or that the decision to sell will be withdrawn. Management must be committed to the plan to sell the asset and the sale expected to be completed within one year from the date of the classification.

 

Property, plant and equipment and intangible assets are not depreciated or amortised once classified as held for sale.

 

- 36 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.8Non-current assets held for sale (cont’d)

 

Assets and liabilities classified as held for sale are presented separately as current items in the consolidated statements of financial position.

 

If at any time the criteria for held for sale classification are no longer met, a long-lived asset classified as held for sale should be considered to be reclassified as held and used at the lower of its carrying amount before the asset was classified as held for sale, adjusted for any depreciation expense that would have been recognised had the asset been continuously classified as held and used and its fair value at the date of the subsequent decision not to sell.

 

2.9Property, plant and equipment

 

Property, plant and equipment are stated at cost less accumulated depreciation.

 

The cost of property, plant and equipment comprises their purchase prices and any directly attributable costs of bringing the property, plant and equipment to working condition for its intended use.

 

Expenditures for additions, improvements and renewals are added to the carrying amount of the assets and expenditures for maintenance and repairs are charged to the statements of profit or loss as incurred.

 

Depreciation of property, plant and equipment are calculated on a straight-line basis over the estimated useful life of the assets, as follows:

 

Buildings and structures (*)   3 – 50 years 
Machinery and equipment   3 – 25 years 
Leased-out EV batteries   8 – 10 years 
Leased-out E-scooter batteries   3 – 8 years 
Vehicles   5 – 12 years 
Office equipment   3 – 10 years 
Others   3 – 10 years 

 

(*)Including leasehold improvements which are depreciated on a straight-line basis over the shorter of their estimated useful lives and terms of the related leases.

 

Freehold land is not depreciated. Assets under construction included in property, plant and equipment are not depreciated as these assets are not yet available for use.

 

An item of property, plant and equipment and any significant part initially recognised is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the Consolidated statements of profit or loss when the asset is derecognised.

 

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

 

- 37 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.10Intangible assets

 

Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition. Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses. Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

 

The useful lives of intangible assets are assessed as either finite or indefinite.

 

Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is recognised in the Consolidated statements of profit or loss in the expense category that is consistent with the function of the intangible assets.

 

An intangible asset is derecognised upon disposal (i.e., at the date the recipient obtains control) or when no future economic benefits are expected from its use or disposal. Any gain or loss arising upon derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statements of profit or loss.

 

Research and development costs

 

Research costs are expensed as incurred. Development expenditures on an individual project are recognised as an intangible asset when the Group can demonstrate:

 

-The technical feasibility of completing the intangible asset so that the asset will be available for use or sale;

 

-Its intention to complete and its ability and intention to use or sell the asset;

 

-How the asset will generate future economic benefits;

 

-The availability of resources to complete the asset; and

 

-The ability to measure reliably the expenditure during development.

 

Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated impairment losses. Amortisation of the asset begins when development is complete and the asset is available for use. It is amortised over the period of expected pattern of consumption of future economic benefits. Amortisation is recorded in cost of sales. During the period of development, the asset is tested for impairment annually.

 

Amortisation of intangible assets are calculated on a straight-line basis over the estimated useful life of each asset as follows:

 

Product development costs  5 – 7 years
License  3 years 2 months to 7 years
Software  3 – 10 years
Others  3 – 15 years

 

- 38 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.11Borrowing costs

 

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.

 

The interest capitalised is calculated using each entity within Group’s weighted average cost of borrowings after adjusting for borrowings associated with specific developments. Where borrowings are associated with specific developments, the amounts capitalised is the gross interest incurred on those borrowings less any investment income arising on their temporary investment. Interest is capitalised as from the commencement of the development work until the date of practical completion. The capitalization of finance costs is suspended if there are prolonged periods when development activity is interrupted. Interest is also capitalised on the purchase cost of a site of property acquired specifically for redevelopment, but only where activities necessary to prepare the asset for redevelopment are in progress.

 

2.12Government grant

 

The Group’s subsidiaries received government subsidies from certain local governments. The Group’s government subsidies consisted of specific subsidies and other subsidies. Specific subsidies are subsidies that the local government has provided for a specific purpose, such as factory development and renewal of production facilities. Other subsidies are the subsidies that the local government has not specified its purpose for and are not tied to future trends or performance of the Group; receipt of such subsidy income is not contingent upon any further actions or performance of the Group and the amounts do not have to be refunded under any circumstances. The Group recorded specific purpose subsidies as advances payable when received in case of all the conditions are not met.

 

For specific subsidies, upon government acceptance of the related project development or asset acquisition, the specific purpose subsidies are recognised to reduce related the cost of asset acquisition in case of all the attached contingent conditions are met. Other subsidies are recognised as other operating income upon receipt as further performance by the Group is not required.

 

Site Development Agreement

 

The Group’s subsidiaries entered into a Site Development Agreement with North Carolina Department of Commerce (“NC DOC”), pursuant to which, the Group’s subsidiaries are required to submit relevant documents to request for reimbursement of costs associated with the land levelling up to VND3,250 billion. For the year ended 31 December 2025, the Group’s subsidiaries received VND151,161 million (2024: VND1,477,914 million) of cash from this incentive. The government grants received are recorded in the account of other short-term liabilities due to the uncertainty of certain events and conditions for Recovery of Funds as specified in the Site Development Agreement.

 

- 39 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.12Government grant (cont’d)

 

Capital Reimbursement Agreement

 

A subsidiary of the Group has entered into a Memorandum of Understanding (“MoU”) with the Government of Tamil Nadu, India, pursuant to which, the subsidiary may be eligible to receive a package of incentives in the form of financial and other incentives. The package of incentives includes financial support of up to 52% of subsidiary’s eligible fixed capital investment, subject to a cap of INR 2,080 crores. Eligibility for such incentives is contingent upon the subsidiary fulfilling specified conditions over an investment period of five years ending 31 December 2028. The incentives become claimable upon the later of (i) the commencement of commercial operations or (ii) the achievement of a minimum investment threshold of INR 300 crores.

 

For the year ended 31 December 2025, the subsidiary has not received any amount related to this grant.

 

2.13Share-based payment

 

The Company has several compensation plans that provide for the granting of share-based compensation to certain employees and directors. Employees’ share based compensation awards are measured at the grant date fair value of the awards and recognised as expenses a) immediately at the grant date if no vesting conditions are required; or b) for share options or restricted shares granted with only service conditions, using the straight-line vesting method, net of estimated forfeitures, over the vesting period; or c) for share options where the underlying share is liability, using the graded vesting method, net of estimated forfeitures, over the vesting period, and re-measuring the fair value of the award at each reporting period end until the award is settled.

 

All transactions in which goods or services are received in exchange for equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable.

 

For equity-settled transactions, the cost is determined by the fair value at the date when the grant is determined with reference to the grant-date share price and, where applicable, using a Monte Carlo simulation model. Share-based compensation expense is recognised in selling, general and administration expense in the Consolidated statements of profit or loss, together with a corresponding increase in equity, over the period in which the service and, where applicable, the performance conditions are fulfilled (“vesting period”). The cumulative expense is recognised for equity-settled transactions at each reporting date using the graded vesting method and reflected the Company’s best estimate of the number of equity instruments that will ultimately vest. The expense in the Consolidated statements of profit or loss for a period represents the movement in cumulative expense recognised as at the beginning and end of that period.

 

Service and non-market performance conditions are not taken into account when determining the grant date fair value of awards, but the likelihood of the conditions being met is assessed as part of the Company’s best estimate of the number of equity instruments that will ultimately vest. Market performance conditions are reflected within the grant date fair value. Any other conditions attached to an award, but without an associated service requirement, are considered to be non-vesting conditions. Non-vesting conditions are reflected in the fair value of an award and lead to an immediate expensing of an award unless there were also service and/or performance conditions.

 

- 40 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.13Share-based payment (cont’d)

 

Compensation cost related to the equity grant of the ultimate parent company awards to employees of the Company of the ultimate parent company’s shares are recognised in the Company’s consolidated financial statements with a corresponding credit to equity, representing the ultimate parent company’s deemed capital contribution.

 

Compensation for cash-settled transactions granted by Vietnam Investment Group Joint Stock Company (“VIG” — a shareholder) to employees and non-employees of the Company are recognised in the Company’s consolidated financial statements with a corresponding credit to equity, representing the shareholder’s deemed capital contribution.

 

2.14Provisions

 

General

 

Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Group expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the Consolidated statements of profit or loss net of any reimbursement.

 

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as finance costs.

 

Warranty reserve

 

The Group provides a manufacturer’s warranty on all new vehicles at the time of vehicle sale. The Group accrues a product warranty reserve for the vehicles sold, based on the best estimate of projected costs to repair or replace items under warranties. These estimates are primarily based on the estimation of the frequency and costs of claims. The Group engages an independence actuary expert to assist in the determination of warranty reserve for vehicles. The warranty reserve does not include projected service costs associated with our vehicles subject to operating lease accounting lease contracts, as these service costs are expensed as incurred.

 

The Group accrues estimated campaigns when such obligations are considered probable and reasonably estimated. The Group calculates the expected costs of each campaign by applying the average repair cost to the number of affected vehicles anticipated to be remedied.

 

- 41 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.14Provisions (cont’d)

 

The following table presents the Group’s warranty reserve balances as of 31 December:

 

   Group 
   2025   2024 
   VND million   VND million 
         
Product warranty   18,153,443    4,453,850 
Campaign warranty   2,797,818    1,175,585 
           
Total   20,951,261    5,629,435 

 

As the Group only commenced volume production of VinFast vehicles in June 2019, management’s experience with warranty claims regarding vehicles or with estimating warranty reserves is limited. The Group could, in the future, become subject to significant and unexpected warranty claims, resulting in significant expenses, which would in turn materially and adversely affect its financial condition, results of operations, and prospects.

 

The Group revises these estimates based on changes in these factors. Product warranty and campaigns expenses are recorded as a component of cost of sale in the Consolidated Statement of Operations. The Group re-evaluates the adequacy of the warranty accrual on a regular basis. The portion of the warranty reserve expected to be incurred within the next 12 months is included in other current liabilities, while the remaining balance is included in other non-current liabilities on the consolidated balance sheets.

 

2.15Leases

 

The Group assesses at contract inception whether a contract is, or contains, a lease. That is, if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.

 

Group as a lessee

 

The Group applies a single recognition and measurement approach for all leases, except for short-term leases and leases of low-value assets. The Group recognises lease liabilities to make lease payments and right-of-use assets representing the right to use the underlying assets.

 

Right-of-use assets

 

The Group recognises right-of-use assets at the commencement date of the lease (i.e., the date the underlying asset is available for use). Right-of-use assets are measured at cost, less any accumulated depreciation and impairment losses, and adjusted for any remeasurement of lease liabilities. The cost of right-of-use assets includes the amount of lease liabilities recognised, initial direct costs incurred, and lease payments made at or before the commencement date less any lease incentives received.

 

- 42 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.15Leases (cont’d)

 

Group as a lessee (cont’d)

 

Right-of-use assets (cont’d)

 

Right-of-use assets are depreciated on a straight-line basis over the shorter of the lease term and the estimated useful lives of the assets, as follows:

 

Lands   21 – 99 years 
Showrooms, workshop and others   2 – 50 years 

 

If ownership of the leased asset transfers to the Group at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

 

The right-of-use assets are also subject to impairment. Refer to accounting policies in Note 2.19.

 

Lease liabilities

 

At the commencement date of the lease, the Group recognises lease liabilities measured at the present value of lease payments to be made over the lease term. The lease payments include fixed payments (including in-substance fixed payments) less any lease incentives receivable, variable lease payments that depend on an index or a rate, and amounts expected to be paid under residual value guarantees. The lease payments also include the exercise price of a purchase option reasonably certain to be exercised by the Group and payments of penalties for terminating the lease, if the lease term reflects the Group exercising the option to terminate.

 

Variable lease payments that do not depend on an index or a rate are recognised as expenses (unless they are incurred to produce inventories) in the period in which the event or condition that triggers the payment occurs.

 

In calculating the present value of lease payments, the Group uses its incremental borrowing rate at the lease commencement date because the interest rate implicit in the lease is not readily determinable. After the commencement date, the amount of lease liabilities is increased to reflect the accretion of interest and reduced for the lease payments made. In addition, the carrying amount of lease liabilities is remeasured if there is a modification, a change in the lease term, a change in the lease payments (e.g., changes to future payments resulting from a change in an index or rate used to determine such lease payments) or a change in the assessment of an option to purchase the underlying asset.

 

The Group’s lease liabilities are included in Note 23.

 

Short-term leases and leases of low-value assets

 

The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

 

- 43 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.15Leases (cont’d)

 

Group as a lessor

 

At the commencement date, the lease payments consist of the fixed payments less any lease incentives paid or payable to the lessee relating to the use of the underlying asset during the lease term. Lease payments do not include variable lease payments that do not depend on an index or a rate.

 

Leases are classified at the lease commencement date as either a finance lease or an operating lease. A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership of an underlying asset. A lease is classified as an operating lease if it does not transfer substantially all the risks and rewards incidental to ownership of an underlying asset.

 

For a finance lease, at the lease commencement, net investment in the lease is recognised by the sum of the lease receivable and the unguaranteed residual asset. Lease receivable is the present values of the sum of lease payments and the guaranteed residual asset. At the commencement date, a manufacturer or dealer lessor shall recognise the following for each of its finance leases:

 

(a)revenue being the fair value of the underlying asset, or, if lower, the present value of the lease payments accruing to the lessor, discounted using a market rate of interest;

 

(b)the cost of sale being the cost, or carrying amount if different, of the underlying asset less the present value of the unguaranteed residual value; and

 

(c)selling profit or loss (being the difference between revenue and the cost of sale)

 

Interest income based on the market rate in the lease is recorded to finance income over time as customers are invoiced on a monthly basis.

 

All other leases are accounted for as operating leases wherein the Group recognises, at the commencement date, the lease payments as income in profit or loss over the lease term on a straight-line basis and the Group recognises variable lease payments as income in profit or loss in the period in which the changes in facts and circumstances on which the variable lease payment are based occur. Contingent rents are recognised as revenue in the period in which they are earned.

 

Battery leases

 

The Group has battery leases accounted for as both operating leases and finance leases. Both types of battery leases have an indefinite term and can be terminated at any time at the customer’s discretion. At the termination of contract, customers may choose to purchase the batteries they are currently leasing at a predetermined price or return the batteries to the Group.

 

- 44 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.15Leases (cont’d)

 

Group as a lessor (cont’d)

 

Business cooperation contract (“BCC”) with V-Green Global Charging Station Development JSC (“V-Green JSC”)

 

In September 2024, VinFast entered into an agreement with V-Green, a related party under common control, for the leasing of the VinFast charging station system, which is mostly recognised as property, plant, and equipment, in exchange for a specified percentage of the total revenue generated from these assets. As of 31 December 2025, the cost and accumulated depreciation of these property, plant, and equipment under the BCC is VND5,434.0 billion and VND2,436.7 billion respectively. The lease is classified as an operating lease whereby VinFast acts as the lessor.

 

2.16Financial instruments

 

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

 

(a)Financial assets

 

Initial recognition and measurement

 

Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other comprehensive income (OCI), and fair value through profit or loss.

 

The classification of financial assets at initial recognition depends on the financial asset’s contractual cash flow characteristics and the Group’s business model for managing them. With the exception of trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs. Trade receivables that do not contain a significant financing component or for which the Group has applied the practical expedient are measured at the transaction price.

 

In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal amount outstanding. This assessment is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are classified and measured at fair value through profit or loss, irrespective of the business model.

 

The Group’s business model for managing financial assets refers to how it manages its financial assets in order to generate cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the financial assets, or both. Financial assets classified and measured at amortised cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling.

 

- 45 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.16Financial instruments (cont’d)

 

(a)Financial assets (cont’d)

 

Initial recognition and measurement

 

Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the marketplace (regular way trades) are recognised on the trade date, i.e., the date that the Group commits to purchase or sell the asset.

 

Subsequent measurement

 

For purposes of subsequent measurement, financial assets are classified in four categories:

 

-Financial assets at amortised cost (debt instruments);

 

-Financial assets at fair value through OCI with recycling of cumulative gains and losses (debt instruments);

 

-Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition (equity instruments); and

 

-Financial assets at fair value through profit or loss.

 

Financial assets at amortised cost (debt instruments)

 

Financial assets at amortised cost are subsequently measured using the effective interest (EIR) method and are subject to impairment. Gains and losses are recognised in profit or loss when the asset is derecognised, modified or impaired.

 

The Group’s financial assets at amortised cost includes trade receivables, amount due from related parties, other receivables, and other non-current assets (Note 25).

 

Financial assets at fair value through OCI (debt instruments)

 

For debt instruments at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the Consolidated statements of profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value change recognised in OCI is recycled to profit or loss.

 

The Group does not have debt instruments at fair value through OCI.

 

- 46 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.16Financial instruments (cont’d)

 

2.16Financial instruments (cont’d)

 

(a)Financial assets (cont’d)

 

Subsequent measurement (cont’d)

 

Financial assets designated at fair value through OCI (equity instruments)

 

Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under FRS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis.

 

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the Consolidated statements of profit or loss when the right of payment has been established, except when the Group benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

 

The Group does not have financial assets at fair value through OCI.

 

Financial assets at fair value through profit or loss

 

Financial assets at fair value through profit or loss are carried in the Consolidated statements of financial position at fair value with net changes in fair value recognised in the Consolidated statements of profit or loss.

 

As at 31 December 2025, the Group has financial assets at fair value through profit or loss as presented in Note 25.

 

Derecognition

 

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e., removed from the Consolidated statements of financial position) when:

 

-The rights to receive cash flows from the asset have expired; or

 

-The Group has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset

 

When the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Group continues to recognise the transferred asset to the extent of its continuing involvement. In that case, the Group also recognises an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and obligations that the Group has retained.

 

- 47 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.16Financial instruments (cont’d)

 

(a)Financial assets (cont’d)

 

Derecognition (cont’d)

 

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay.

 

Impairment

 

The Group recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group expects to receive, discounted at an approximation of the original effective interest rate. The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms. ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

 

The Group considers a financial asset in default when contractual payments are 90 days past due. However, in certain cases, the Group may also consider a financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of recovering the contractual cash flows.

 

(b)Financial liabilities

 

Initial recognition and measurement

 

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss or financial liabilities at amortised cost, as appropriate.

 

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and other financial liabilities, net of directly attributable transaction costs.

 

The Group’s financial liabilities include trade and other payables, amount due to related parties, loans and borrowings including bank overdrafts, lease liabilities, accruals, other liabilities and derivative financial instruments.

 

- 48 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.16Financial instruments (cont’d)

 

(b)Financial liabilities (cont’d)

 

Subsequent measurement

 

The measurement of financial liabilities depends on their classification, as described below:

 

Financial liabilities at fair value through profit or loss

 

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

 

Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments entered into by the Group that are not designated as hedging instruments in hedge relationships as defined by FRS 109. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognised in the Consolidated statements of profit or loss.

 

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of recognition, and only if the criteria in FRS 109 are satisfied.

 

As at 31 December 2025, the Group has financial liabilities at fair value through profit or loss as presented in Note 25.

 

Financial liabilities at amortised cost

 

This is the category most relevant to the Group. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

 

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the Consolidated statements of profit or loss. This category generally applies to interest-bearing loans and borrowings. For more information, refer to Note 21.

 

As at 31 December 2025, the Group also applied this category to the business cooperation contract as disclosed in Note 18. In return for the cooperation capital, the counterparty will earn a variable indexed on the Group’s total revenue from sale of electric vehicles in all markets. They are carried at amortised cost, determined by discounting forecast revenue using the effective interest rate which takes account of indexation. The amortised cost of the financial liability will be recalculated as the present value of the estimated future contractual cash flows that are discounted at the financial instrument’s original effective interest rate when there is a significant change in future sales prospects or the non-substantial difference of modification of contract that revises the estimate of payment.

 

- 49 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.16Financial instruments (cont’d)

 

(b)Financial liabilities (cont’d)

 

Derecognition

 

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expired. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the Consolidated statements of profit or loss.

 

(c)Offsetting of financial instruments

 

Financial assets and financial liabilities are offset and the net amount is reported in the Consolidated statements of financial position if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

 

2.17Inventories

 

Inventories are stated at the lower of cost incurred in bringing each product to its present location and condition, and net realizable value.

 

Net realizable value (“NRV”) represents the estimated selling price in the ordinary course of business, less the estimated costs of completion and the estimated costs necessary to make the sale.

 

The perpetual method is used to record inventories, which are valued as follows:

 

  Raw materials, tools and merchandises -    cost of purchase on a weighted average basis.
       
  Finished goods and work-in process -    cost of direct materials and labour plus attributable manufacturing overheads based on the normal operating capacity on a weighted average basis.

 

Provision for inventories

 

An inventory provision is created for the estimated loss arising due to the impairment of value (through diminution, damage, etc.) of raw materials, finished goods, and other inventories owned by the Group, based on appropriate evidence of impairment, including information about the replacement cost, available at the date of the consolidated statements of financial position.

 

Increases or decreases to the provision balance are recorded in the cost of goods sold account in the statements of profit or loss.

 

- 50 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.18Cash and cash equivalents

 

Cash and cash equivalents comprise cash on hand, cash in banks, cash in transit and short-term, highly liquid investments with an original maturity of not more than three months that are readily convertible into known amounts of cash and that are subject to an insignificant risk of change in value.

 

2.19Impairment of non-financial assets

 

The Group assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Group estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or CGU’s fair value less costs of disposal and its value in use. The recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

 

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

 

The Group bases its impairment calculation on most recent budgets and forecast calculations, which are prepared separately for each of the Group’s CGUs to which the individual assets are allocated. These budgets and forecast calculations generally cover a period of five years. A long-term growth rate is calculated and applied to project future cash flows after the fifth year.

 

Impairment losses of continuing operations are recognised in the Consolidated statements of profit or loss in expense categories consistent with the function of the impaired asset, except for properties previously revalued with the revaluation taken to OCI. For such properties, the impairment is recognised in OCI up to the amount of any previous revaluation.

 

For assets excluding goodwill, an assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Group estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the Consolidated statements of profit or loss unless the asset is carried at a revalued amount, in which case, the reversal is treated as a revaluation increase.

 

Impairment is determined for goodwill by assessing the recoverable amount of each CGU (or group of CGUs) to which the goodwill relates. When the recoverable amount of the CGU is less than its carrying amount, an impairment loss is recognised. Impairment losses relating to goodwill cannot be reversed in future periods.

 

- 51 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

2.MATERIAL ACCOUNTING POLICY INFORMATION (CONT’D)

 

2.19Impairment of non-financial assets (cont’d)

 

Intangible assets with indefinite useful lives are tested for impairment annually as at 31 December at the CGU level, as appropriate, and when circumstances indicate that the carrying value may be impaired.

 

2.20Share capital and share issuance expenses

 

Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental costs directly attributable to the issuance of ordinary shares are deducted against share capital.

 

2.21Loss per share

 

Basic loss per share is computed by dividing net loss attributable to holders of ordinary shares by the weighted average number of ordinary shares outstanding during the year. Diluted loss per share is calculated by dividing net loss attributable to ordinary shareholders, as adjusted for the dilutive ordinary equivalent shares, if any, by the weighted average number of ordinary and dilutive ordinary equivalent shares outstanding during the year. Ordinary equivalent shares are not included in the denominator of the diluted earnings per share calculation when inclusion of such shares would be anti-dilutive.

 

3.STANDARDS ISSUED BUT NOT YET EFFECTIVE

 

The Group has not adopted the following standards that have been issued but not yet effective:

 

  Description   Effective for annual periods beginning on or after
       
  Amendments to FRS 109 Financial Instruments and FRS 107 Financial Instruments: Disclosures: Amendments to the Classification and Measurement of Financial Instruments   1 January 2026
  Annual Improvements to FRSs – Volume 11   1 January 2026
  FRS 118 Presentation and Disclosure in Financial Statements   1 January 2027
  Amendments to FRS 110 and FRS 28: Sale or Contribution of Assets between an Investor and its Associate or Joint Venture   To be determined

 

The Group expects that the adoption of the standards above will have no material impact on the financial statements in the period of initial application.

 

- 52 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

3.STANDARDS ISSUED BUT NOT YET EFFECTIVE (CONT’D)

 

In April 2024, FRS 118 Presentation and Disclosure in Financial Statements, which replaces FRS 1 Presentation of Financial Statements, was issued. FRS 118 introduces new requirements for presentation within the statement of profit or loss, including specified totals and subtotals was issued. Furthermore, entities are required to classify all income and expenses within the statement of profit or loss into one of five categories: operating, investing, financing, income taxes and discontinued operations, whereof the three are new.

 

It also requires disclosure of newly defined management-defined performance measures, subtotals of income and expenses, and includes new requirements for aggregation and disaggregation of financial information based on the identified ‘roles’ of the primary financial statements (PFS) and the notes.

 

In addition, narrow-scope amendments have been made to FRS 7 Statement of Cash Flows, which include changing the starting point for determining cash flows from operations under the indirect method, from ‘profit or loss’ to ‘operating profit or loss’ and removing the optionality around classification of cash flows from dividends and interest. In addition, there are consequential amendments to several other standards.

 

FRS 118, and the amendments to the other standards, is effective for reporting periods beginning on or after 1 January 2027, but earlier application is permitted and must be disclosed. FRS 118 will apply retrospectively.

 

The directors are currently assessing the impact of the adoption of changes proposed in FRS 118 to the financial statements in the period of the initial application.

 

The directors expect that the adoption of the other standards above will have no material impact on the financial statements in the period of the initial application.

 

4.SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

 

The preparation of the consolidated financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

 

Other disclosures relating to the Group’s exposure to risks and uncertainties includes (Note 27)

 

-Capital management;

 

-Financial instruments risk management and policies;

 

-Sensitivity analyses disclosures

 

Judgements

 

In the process of applying the Group’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the consolidated financial statements:

 

- 53 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

4.SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS (CONT’D)

 

Impairment of non-financial assets

 

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs of disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Group is not yet committed to or significant future investments that will enhance the performance of the assets of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to goodwill and other intangibles with indefinite useful lives recognised by the Group. The key assumptions used to determine the recoverable amount for the different CGUs, including a sensitivity analysis, are disclosed and further explained in Note 10, 11 and 23.

 

The Group is exposed to the risk of loss on individual assets of leased-out batteries due to the competitive lease subscription fee for customers. The Group evaluates at the end of each reporting period the estimated impairment loss related to leased-out batteries. The estimate is calculated based on fair value less costs of disposal (FVLCD) model using contractual cash flow projections of the lease payments agreed with customers covering the useful life of leased-out batteries.

 

Warranty reserve

 

The Group accrues a product warranty reserve for the vehicles sold, based on the best estimate of projected costs to repair or replace items under warranties. These estimates are primarily based on the estimation of the frequency and average costs of claims. The Group engages an independent actuary expert to assist in the determination of warranty reserve for vehicles. Warranty cost is recorded as a component of cost of sale in the consolidated statement of operations. The Group re-evaluates the adequacy of the warranty accrual on a regular basis. The Group records and adjusts warranty reserves based on changes in estimated costs and actual warranty costs (Note 18.3).

 

5.SEGMENT REPORTING

 

Our Chief Executive Officer, Chief Finance Officer and Deputy Chief Executive Officer of Investment, as the Chief Operating Decision Makers (“CODM”), organises the Company, manages resource allocations and measures performance among three operating and reportable segments: Car, E-scooters and Ebus.

 

The Car segment includes the design, development, manufacturing and sales of cars and related battery lease and battery charging services for cars. The E-scooter segment includes the design, development, manufacturing and sales of e-scooters and related battery lease and battery charging service for e-scooters. The Ebus segment includes the design, development, manufacturing and sales of Ebus.

 

A combination of multiple business activities that does not meet the quantitative thresholds to qualify as reportable segments are grouped together as “All other”. The “All other” category mainly includes sales of spare parts, rendering of after-sale services for automobiles and e-scooters and leasing activities.

 

Our CODM does not evaluate operating segments using asset or liability information. Accordingly, total assets for each reportable segment are not disclosed. Our CODM uses segment gross profit for evaluating product pricing, cost control and optimization, inventory management and short-term cash generating ability of each segment. Information about segments presented revenues and gross profit (loss) by reportable segment were as follows.

 

- 54 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

5.SEGMENT REPORTING (CONT’D)

 

Information about segments of the Group for the year ended 31 December 2025 and 2024 presented were as follows:

 

   Car   E-scooters   Ebus   All other   Total 
   VND million   VND million   VND million   VND million   VND million 
                     
2025                    
Revenues   78,577,415    5,418,724    1,529,043    4,490,628    90,015,810 
Cost of sales   (120,266,365)   (10,007,961)   (1,486,127)   (2,040,371)   (133,800,824)
Gross loss   (41,688,950)   (4,589,237)   42,916    2,450,257    (43,785,014)
Reconciling to operating loss:                       (50,602,669)
Research and development costs                       – 
Selling and distribution costs                       (6,446,648)
Administrative expenses                       (42,984,055)
Net other operating expenses                       (1,171,966)
Operating loss                       (94,387,683)
                          
2024                         
Revenues   39,845,898    2,182,484    130,838    2,152,150    44,311,370 
Cost of sales   (69,699,980)   (2,789,934)   (138,584)   (942,892)   (73,571,390)
Gross loss   (29,854,082)   (607,450)   (7,746)   1,209,258    (29,260,020)
Reconciling to operating loss:                       (21,152,648)
Research and development costs                       – 
Selling and distribution costs                       (7,252,323)
Administrative expenses                       (10,918,496)
Net other operating expenses                       (2,981,829)
Operating loss                       (50,412,668)

 

- 55 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

5.SEGMENT REPORTING (CONT’D)

 

The following table presents revenues earned from external customers for each group of similar products and services of the Group for the years ended 31 December 2025 and 2024:

 

   2025   2024 
   VND million   VND million 
         
Sales of e-cars   77,261,684    37,516,542 
Sales of e-buses   1,529,043    130,838 
Sales of e-scooters   5,230,288    2,182,484 
Sale of spare parts   4,372,529    1,823,617 
Sales of ICE vehicles   114,962    101,134 
Rendering of aftermarket services   14,432    233,101 
Revenue from leasing activities and other services   1,492,872    2,323,654 
           
TOTAL   90,015,810    44,311,370 

 

The following table presents revenues by geographic area based on the sales location of the products for the years ended 31 December 2025 and 2024:

 

   2025   2024 
   VND million   VND million 
         
Vietnam   80,675,232    37,685,034 
United States   1,239,473    2,736,577 
Canada   949,893    1,906,089 
Pacific-Asia   6,821,694    1,844,644 
Europe   329,518    139,026 
           
TOTAL   90,015,810    44,311,370 

 

The following table presents long-lived assets by geographic area:

 

   2025   2024 
   VND million   VND million 
         
Vietnam   62,601,771    82,655,913 
United States   2,495,565    9,479,450 
Other markets   9,041,259    3,623,782 
           
TOTAL   74,138,595    95,759,145 

 

- 56 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

6.SPIN-OFF OF NOVATECH RESEARCH AND DEVELOPMENT JSC

 

In August 2025, a portion of the VinFast Vietnam’s net assets was spun-off to establish a new company, Novatech Research and Development Joint Stock Company (“Novatech”, now known as Future Investment Research and Development Joint Stock Company).

 

Subsequent to the spin-off, the Company transferred its entire ownership interest in Novatech to the Company’s Chief Executive Officer for total consideration of approximately VND39,828 billion, which was accounted for as a disposal of a subsidiary under common control. The consideration was fully received in 2025.

 

Concurrently, VinFast Vietnam entered into a long-term intellectual property license agreement with Novatech, pursuant to which the Company obtained the rights to use such intellectual property for the purpose of continuing its electric vehicle manufacturing operations, for a fixed license fee of VND25,199 billion. In 2025, VinFast settled the entire license fee payable to Novatech through a set-off arrangement and cash payments. As such, all intellectual property rights continue to be recorded in the Company’s consolidated statement of financial position.

 

In addition, the conversion ratios and exchange ratios of the Company’s Dividend Preferred Shares (“DPS”) into common shares of VinFast Vietnam and the Company were modified on 1 October 2025. As a result, DPSs were remeasured at fair value and the differences between their fair value and carrying amount were recorded as a change in other reserves. Further details are disclosed in Note 26 – Dividend Preference Shares.

 

The series of transactions including (i) the spin-off, (ii) the license agreement between Novatech and VinFast Vietnam, (iii) the transfer of Novatech’s ordinary shares to the Company’s Chief Executive Officer, and (iv) the amendments of the conversion ratios and exchange ratios of the Company’s DPS constituted a single and linked transaction. As such, the difference of VND40,792 billion between the cash received by the Company and the assets transferred are recorded in Other reserves in the Statements of change in equity, and no gain or loss was recorded in profit or loss.

 

7.INVESTMENTS IN EQUITY INVESTEES

 

Name  As of 31 December 2025   Principal activities
   Voting right
(%)		   Equity interest
(%)		   Effective equity held by the Group
(%)		    
V-G High Tech Energy Solutions Co., Ltd. (“V-G”)   49.0    48.6    48.6   Development and production of electric vehicle batteries and energy storage system

 

V-G’s head office is located at Vung Ang Economic Zone, Vung Ang Ward, Ha Tinh province.

 

- 57 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

8.REVENUE, COST OF SALES AND OTHER INCOME/EXPENSES

 

8.1Revenue from contracts with customers

 

Disaggregated revenue information

 

Major products/service line:

 

The Group presented the following disaggregated revenue:

 

   Group 
   2025   2024 
   VND million   VND million 
         
Revenue from contracts with customers        
Sales of vehicles   84,021,015    39,829,864 
Sales of merchandise   114,962    101,134 
Sales of spare parts and components   4,372,529    1,823,617 
Rendering of services   103,595    895,835 
           
TOTAL   88,612,101    42,650,450 

 

Timing of revenue recognition:

 

The Group presented the following disaggregated revenue:

 

   Group 
   2025   2024 
   VND million   VND million 
         
Revenue from contracts with customers        
Products transferred at a point in time   88,508,506    41,754,615 
Service transferred over time   103,595    895,835 
           
TOTAL   88,612,101    42,650,450 

 

Contract balances

 

   Group 
   2025   2024 
   VND million   VND million 
         
Short-term trade receivables from contracts with customers (Note 15.1)   4,670,062    5,605,044 
           
TOTAL   4,670,062    5,605,044 
           
Long-term trade receivables from contracts with customers (Note 15.2)   563,512    615,650 
           
TOTAL   563,512    615,650 

 

- 58 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

8.REVENUE, COST OF SALES AND OTHER INCOME/EXPENSES (CONT’D)

 

8.1Revenue from contracts with customers (cont’d)

 

Disaggregated revenue information (cont’d)

 

Contract balances (cont’d)

 

Trade receivables are mainly from sale of automobiles and e-scooters, which are unconditional (i.e., only the passage of time is required before payment of the consideration is due).

 

   Group 
   2025   2024 
   VND million   VND million 
         
Contract liabilities:        
Deferred revenue (Note 20)   4,394,663    3,080,113 
Non-refundable down payment from customers (Note 19)   1,584,938    1,041,441 
           
TOTAL   5,979,601    4,121,554 

 

Contract liabilities included deposits and down payment received in advance from customers for sale of automobiles, e-scooters and service parts. Revenue recognised in 2025 from these contract liabilities amounted to approximately VND973 billion (2024: VND728 billion).

 

Performance obligation

 

Information about the Group’s performance obligations are summarised below:

 

Performance Obligation   When Performance Obligation is Typically Satisfied   Significant Payment Terms
         
Sale of goods        
Automobiles, e-scooters, spare parts and components   Physical delivery of goods to the customer (point in time)   Payment is generally in full upon delivery. EV dealers and few corporate buyers are granted with payment term from 15 to 60 days.
Rendering services        
Aftersales services and battery subscription services     As work is performed (over time)   Payment is in full when completion of services for aftersales services and within the first 15 days of the next month for battery subscription services.  
         
Extended service-type warranty service (Automobiles)   As work is performed (over time)   Payment is generally in full upon delivery of automobiles.

 

- 59 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

8.REVENUE, COST OF SALES AND OTHER INCOME/EXPENSES (CONT’D)

 

8.2Cost of sales

 

   Group 
   2025   2024 
   VND million   VND million 
         
Cost of vehicles sold   (129,673,877)   (69,323,637)
Cost of merchandises sold   (113,972)   (104,845)
Cost of spare parts sold and components   (1,951,660)   (700,805)
Cost of rendering services   (87,221)   (1,488,424)
Cost of leasing activities   (1,974,094)   (1,953,679)
           
TOTAL   (133,800,824)   (73,571,390)

 

Included in cost of sales are depreciation of property, plant and equipment of VND7,907,062 million (2024: VND6,636,787 million), amortisation of intangible assets of VND6,680,724 million (2024: VND4,222,655 million), and depreciation of right of use assets of VND271,360 million (2024: VND264,177 million).

 

Cost of sales also included warranty expenses amounting to VND17,875,350 million (2024: VND4,130,611 million) and employee benefits expenses amounting to VND5,930,621 million (2024: VND3,911,384 million).

 

8.3Other operating income

 

   Group 
   2025   2024 
   VND million   VND million 
         
         
Interest due to late payment from customers   279,665    268,578 
Others   468,886    127,604 
           
TOTAL   748,551    396,182 

 

- 60 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

8.REVENUE, COST OF SALES AND OTHER INCOME/EXPENSES (CONT’D)

 

8.4Selling and distribution expense

 

   Group 
   2025   2024 
   VND million   VND million 
         
External service expenses (i)   (3,346,430)   (3,079,211)
Employee benefit expenses   (1,650,153)   (2,275,611)
Depreciation and amortisation of assets   (885,256)   (1,195,840)
Others   (564,809)   (701,661)
           
TOTAL   (6,446,648)   (7,252,323)

 

(i)Mostly including marketing and advertising expenses, transportation fees and other expenses related to sales and marketing personnel.

 

8.5Administrative expenses

 

   Group   Company 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
Research and development expenses (i)   (3,414,660)   (2,573,620)   –    – 
Impairment loss on property, plant and equipment, intangible assets, and right-of-use assets   (34,171,629)   (3,267,446)   –    – 
Employee benefits expenses   (1,829,247)   (1,912,101)   (119,358)   (66,846)
External service expenses   (1,582,718)   (1,791,680)   (383,443)   (516,632)
Depreciation and amortisation of fixed assets   (502,638)   (428,364)   (1,176)   (1,176)
Others   (1,483,163)   (945,285)   –    (63,803)
                     
TOTAL   (42,984,055)   (10,918,496)   (503,977)   (648,457)

 

(i)The Group’s research and development concentrates on activities to develop automotive products. Research and development costs that are not eligible for capitalisation have been expensed off as administrative expenses in the year.

 

- 61 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

8.REVENUE, COST OF SALES AND OTHER INCOME/EXPENSES (CONT’D)

 

8.6Other operating expenses

 

   Group   Company 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
Loss on disposal and write-off of property, plant and equipment   (1,117,792)   (874,391)   –    – 
Compensation expenses (*)   (250,641)   (1,380,804)   –    – 
Foreign exchange losses, net   (211,054)   (1,062,012)   –    – 
Others   (341,030)   (60,804)   –    – 
                     
TOTAL   (1,920,517)   (3,378,011)   –    – 

 

(*)In 2025, compensation expenses mainly consisted of contract penalties due to early termination of the showroom lease contracts. In 2024, compensation expenses mainly consisted of the estimated charges from suppliers due to the cessation of development of certain battery models, temporary cessation of construction of a factory and termination of certain lease contracts.

 

8.7Finance income

 

   Group   Company 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
Interest income on loan receivables and bank deposits   242,770    291,428    766    11,212 
Interest income on finance lease   90,583    88,863    –    – 
Interest income on related party receivables   –    –    382,922    493,971 
Gain from sale of investment   –    –    19,642,758    – 
Others   58,218    15,480    17,880    – 
                     
TOTAL   391,571    395,771    20,044,326    505,183 

 

- 62 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

8.REVENUE, COST OF SALES AND OTHER INCOME/EXPENSES (CONT’D)

 

8.8Finance costs

 

   Group   Company 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
Contractual coupons on loans and borrowings   (17,211,471)   (15,413,488)   (900,155)   (983,777)
Change in amortised costs of financial instruments measured at amortised cost (i)   (3,791,741)   (4,042,267)   –    – 
Others   (1,709,671)   (552,989)   (3,007)   (56,975)
                     
TOTAL   (22,712,883)   (20,008,744)   (903,162)   (1,040,752)

 

(i)Included within are interest on lease liabilities of VND941,970 million (2024: VND1,155,283 million) (Note 23).

 

8.9Employee benefits expenses

 

   Group   Company 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
Included in cost of sales   (5,930,621)   (3,911,384)   –    – 
Wages and salaries   (4,498,385)   (3,206,469)   –    – 
Social security costs   (494,118)   (296,726)   –    – 
Other employee benefits expenses   (938,118)   (408,189)   –    – 
              –      
Included in selling and distribution costs   (1,650,153)   (2,275,611)   –    – 
Wages and salaries   (1,132,328)   (1,808,955)   –    – 
Social security costs   (82,756)   (141,270)   –    – 
Other employee benefits expenses   (435,069)   (325,386)   –    – 
                     
Included in administrative expenses   (1,829,247)   (1,912,101)   (119,358)   (66,846)
Wages and salaries   (1,202,250)   (1,363,026)   (57,248)   (38,786)
Social security costs   (140,689)   (90,813)   –    – 
Other employee benefits expenses   (486,308)   (458,262)   (62,110)   (28,060)
                     
TOTAL   (9,410,021)   (8,099,096)   (119,358)   (66,846)

 

- 63 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

9.CORPORATE INCOME TAX

 

The tax report filed by the entities under the Group are subject to examination by the tax authorities. As the application of tax laws and regulations is susceptible to varying interpretations, the amounts reported in the consolidated financial statements are more-likely-than-not and could change based on the interpretation of tax law by the relevant legal authorities.

 

The major components of tax expense for the years ended 31 December 2025 and 2024 are:

 

Consolidated and stand-alone statements of profit or loss for the years ended 31 December 2025 and 2024 respectively:

 

   Group   Company 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
Income taxes                
Current income tax (income)/expense   (850)   56,926    12    183 
Deferred tax expense/(income)   224,395    (7,899)   –    – 
                     
Income tax expense reported in the statements of profit or loss   223,545    49,027    12    183 

 

Reconciliation of tax expense and the accounting profit for 2025 and 2024:

 

   Group 
   2025   2024 
   VND million   VND million 
         
Loss before income tax   (119,832,138)   (73,257,507)
At Vietnam’s statutory income tax rate of 20% for the Group (2024: 20%)   (23,966,428)   (14,651,501)
Effect of preferential tax rates   9,308,359    5,618,228 
Foreign tax rates differential   (1,177,605)   (335,011)
Deemed contribution from owners through cash donation to the Company   2,300,017    2,035,221 
Deemed contribution from owner through free electric charging offered to customers   –    590,075 
Deferred tax assets not recognised   12,662,414    6,251,907 
Others   1,096,788    540,108 
           
Income tax expense   223,545    49,027 

 

- 64 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

9.CORPORATE INCOME TAX (CONT’D)

 

   Company 
   2025   2024 
   VND million   VND million 
         
Profit/(loss) before income tax   33,910,098    (11,880,839)
           
At Singapore’s statutory income tax rate of 17% for the Group (2024: 17%)   5,764,717    (2,019,743)
Non-taxable interest income   (61,748)   (83,720)
(Non-taxable income)/non-deductible expenses   (5,702,969)   2,103,463 
Under provision of tax expense in prior financial years   12    183 
           
Income tax expense   12    183 

 

9.1Current corporate income tax

 

Singapore

 

The Company incorporated in Singapore is subject to the Singapore corporate income tax (“CIT”) rate of 17% for the years ended 31 December 2025, and 2024.

 

Vietnam

 

The statutory corporate income tax rate applied for subsidiaries in Vietnam is 20% of taxable income, except for VinFast Vietnam, VinEG and VinES Ha Tinh.

 

The statutory CIT rate applicable to the income generated from investment projects of VinFast Vietnam, VinEG and VinES Ha Tinh is 10% in the first consecutive 15 years commencing from the first year in which income from investment project is generated. These entities are exempted from CIT for investment projects for 4 years commencing from the first year in which a taxable income from investment project is earned or commencing from the fourth year from the first year in which revenue is generated if no taxable profit is earned for the first 3 years, and a 50% reduction of CIT for the subsequent 9 years. Details of these tax incentives period depend on the specific condition of each entity.

 

Others

 

The CIT rates applicable to subsidiaries established in countries other than Singapore and Vietnam vary depending on the regulations of the local tax authorities.

 

- 65 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

9.CORPORATE INCOME TAX (CONT’D)

 

9.1Current corporate income tax (cont’d)

 

International Tax Reform – Pillar Two Model Rules (GloBE)

 

The Organisation for Economic Co-operation and Development (OECD)/G20 Inclusive Framework on Base Erosion and Profit Shifting (BEPS) addresses the tax challenges arising from the digitalisation of the global economy.

 

The Pillar Two Global anti-Base Erosion rules (GloBE Rules) represent the first substantial overhaul of the international tax rules in almost a century. The GloBE Rules propose four new taxing mechanisms under which multinational enterprises (MNEs) would pay a minimum level of tax (Minimum Tax): the Subject to Tax Rule is a tax treaty-based rule that generally proposes a Minimum Tax on certain cross-border intercompany transactions that otherwise are not subject to a minimum level of tax; the Income on Rule (IIR); the Under Taxed Payments Rule (UTPR); and the Qualified Domestic Minimum Top-up Tax (QDMTT) generally propose a Minimum Tax on the income arising in each jurisdiction in which an MNE operates.

 

FRS 12 mandates that as a temporary exception to the standard’s requirements, entities shall neither recognise nor disclose information about deferred tax assets and liabilities related to Pillar Two income taxes. The Group has applied this exception and has not yet assessed the potential deferred tax impact of Pillar Two income taxes. The Group will continue to monitor the application of this temporary exception and will assess the accounting implications accordingly.

 

For the twelve-month periods ended 31 December 2025 and 2024, the Group had no current tax exposure related to Pillar Two legislation effective at the reporting date.

 

- 66 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

9.CORPORATE INCOME TAX (CONT’D)

 

9.2Deferred tax

 

   Consolidated statement of financial position   (Charge)/credit to consolidated statement of profit or loss 
   Group   Group 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
Deferred tax assets                
Sales and lease back transaction   846,464    921,194    (74,730)   (8,375)
Lease liabilities   398,092    704,496    (306,404)   (318,362)
Impairment   1,422,012    911,934    510,078    89,456 
Others   441,507    355,947    85,560    139,979 
                     
Deferred tax liabilities                    
Sales and lease back transaction   (2,892,467)   (2,443,509)   (448,958)   4,445 
Right of use assets   (398,092)   (704,496)   306,404    318,362 
Others   (672,925)   (376,580)   (296,345)   (217,606)
                     
Net deferred tax liabilities   (855,409)   (631,014)   (224,395)   7,899 

 

- 67 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

9.CORPORATE INCOME TAX (CONT’D)

 

9.2Deferred tax (cont’d)

 

   Consolidated statement of financial position   (Charge)/credit to consolidated statement of profit or loss 
   Group   Group 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
                 
Deferred tax (expenses)/income                       (224,395)   7,899 
                     
Reflected in the consolidated statements of financial position as follows:                    
Deferred tax assets   –    –           
Deferred tax liabilities   (855,409)   (631,014)          
                     
Deferred tax liabilities, net   (855,409)   (631,014)          

 

- 68 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

9.CORPORATE INCOME TAX (CONT’D)

 

9.3Unrecognised deferred tax assets

 

Tax loss carried forward

 

In August 2025, a portion of VinFast Vietnam’s accumulated tax losses amounting to VND44,125 billion was spun-off to Novatech, due to spin-off transaction described in Note 6.

 

As at 31 December 2025, the Group had accumulated tax losses of VND60,454 billion (2024: VND89,765 billion) available for offset against future taxable profit. These are estimated accumulated tax losses as per the CIT declarations of the consolidated entities which have not been finalized by the local tax authorities as at the date of these consolidated financial statements.

 

No deferred tax assets have been recognised in respect of these accumulated tax losses as future taxable profits cannot be ascertained at this stage.

 

As of 31 December 2025, the Vietnamese entities is entitled to carry tax losses forward to offset against taxable income arising within 5 years subsequent to the year which the loss was incurred. As at the consolidated balance sheet date, the Vietnamese entities had accumulated tax losses of approximately VND28,923 billion, of which tax losses that will be forfeited in 2026 is approximately VND3,995 billion, available for offset against future taxable income within five years subsequent to the year in which the loss incurred.

 

As of 31 December 2025, the Group has tax losses arising in subsidiaries other than Vietnam of VND31,530 billion (2024: VND21,872 billion) that will be carried for deduction against future taxable profit depending on the local tax regulations.

 

Impairment of long-lived assets

 

The Group also has impairment of property, plant and equipment, intangible assets (excluding goodwill), and right-of-use assets of VND56,535 billion (2024: VND 23,729 billion) as at 31 December 2025. The Group has not recognised deferred tax assets in respect of impairment amount of VND44,471 billion because there are no certain evidence of recoverability in the near future.

 

9.4Uncertain tax position

 

The management takes into account the requirement of INT FRS 123 for all uncertainty over income tax treatments. In determining the treatment for uncertain tax positions, the management considers either the probability of whether the relevant taxation authority will accept the tax treatment under tax law or preparing its income tax filings and supporting tax treatments. Based on the reasonable estimates and prudent judgements of the management, it is more likely than not that the taxation authority will accept all uncertain tax treatments of the Group. Accordingly, the Group did not record any uncertain tax position as at 31 December 2025 (2024: nil).

 

- 69 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

10.PROPERTY, PLANT AND EQUIPMENT

 

    Group  
    Buildings
and
structures		     Machinery
and
equipment1		     Vehicles     Office
equipment		     Others     Construction
in progress		     Total  
    VND million     VND million     VND million     VND million     VND million     VND million     VND million  
                                           
Cost                                          
1 January 2024     17,624,191       55,007,001       2,249,858       813,315       98,201       8,224,968       84,017,534  
Addition and transfer from construction in progress     1,183,998       10,320,155       318,031       213,150       1,438       (1,787,799 )     10,248,973  
Acquisition of subsidiaries     1,168,431       9,508,635       13,854       42,086       56,444       1,226,227       12,015,677  
Disposals     (1,055,047 )     (402,703 )     (171,787 )     (229,108 )     (22,710 )     –       (1,881,355 )
Reclassification     (310,780 )     338,725       58,010       (4,468 )     –       –       81,487  
Currency realignment     (1,626 )     (9,338 )     4,032       (43 )     (84 )     –       (7,059 )
                                                         
31 December 2024 and 1 January 2025     18,609,167       74,762,475       2,471,998       834,932       133,289       7,663,396       104,475,257  
                                                         
Addition and transfer from construction in progress     4,648,416       12,273,424       48,530       321,735       6,276       6,149,749       23,448,130  
Disposals     (298,998 )     (2,590,527 )     (513,879 )     (95,844 )     (4,370 )     –       (3,503,618 )
Reclassification (i)     (438,651 )     (200,766 )     (49,732 )     (1,141 )     –       –       (690,290 )
Currency realignment     116,396       29,251       18,236       22,593       –       –       186,476  
                                                         
31 December 2025     22,636,330       84,273,857       1,975,153       1,082,275       135,195       13,813,145       123,915,955  

 

- 70 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

10.PROPERTY, PLANT AND EQUIPMENT (CONT’D)

 

   Group 
   Buildings
and
structures		   Machinery
and
equipment1		   Vehicles   Office
equipment		   Others   Construction
in progress		   Total 
   VND million   VND million   VND million   VND million   VND million   VND million   VND million 
                     
Accumulated depreciation and impairment                    
1 January 2024   6,213,811    24,690,093    950,817    501,059    77,525    1,829,750    34,263,055 
Charge for the year   684,061    6,194,018    368,868    213,844    7,562    –    7,468,353 
Acquisition of Subsidiaries   63,175    741,488    3,083    11,179    3,739    –    822,664 
Impairment   –    3,105,929    –    –    –    –    3,105,929 
Disposal   (516,915)   (234,043)   (61,019)   (143,404)   –    –    (955,381)
Reclassification   (2,710)   (1,478)   (45,460)   (4,078)   –    –    (53,726)
Currency realignment   3,386    (32)   2,445    (52)   10    –    5,757 
                                    
31 December 2024 and 1 January 2025   6,444,808    34,495,975    1,218,734    578,548    88,836    1,829,750    44,656,651 
Charge for the year   939,905    7,340,586    65,013    71,349    8,246    –    8,425,099 
Impairment   5,902,476    12,939,069    248,470    132,850    9,563    5,995,226    25,227,654 
Disposal   (176,840)   (1,472,126)   (213,646)   (26,628)   (3,251)   –    (1,892,491)
Reclassification (i)   –    (35,237)   (29,569)   –    –    –    (64,806)
Currency realignment   37,746    12,087    4,337    5,943    –    –    60,113 
                                    
31 December 2025   13,148,095    53,280,354    1,293,339    762,062    103,394    7,824,976    76,412,220 
                                    
Net book value                                   
31 December 2024   12,164,359    40,266,500    1,253,264    256,384    44,453    5,833,646    59,818,606 
                                    
31 December 2025   9,488,235    30,993,503    681,814    320,213    31,801    5,988,169    47,503,735 

 

(i)Included within are reclassifications of various assets into Assets held for Sale with net book value amounting to VND511,018 million.

 

- 71 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

10.PROPERTY, PLANT AND EQUIPMENT (CONT’D)

 

   Company 
   Office equipment   Total 
   VND million   VND million 
Cost        
1 January 2024   64    64 
Additions   2    2 
           
31 December 2024, 1 January 2025 and 31 December 2025   66    66 
           
Accumulated depreciation          
1 January 2024   21    21 
Charge for the year   15    15 
           
31 December 2024 and 1 January 2025   36    36 
Charge for the year   11    11 
           
31 December 2025   47    47 
           
Net book value          
           
31 December 2024   30    30 
           
31 December 2025   19    19 

 

As at 31 December 2025, a portion of property, plant and equipment with net carrying amount of VND26,890 billion (2024: VND28,148 billion) are pledged with banks to secure the Group’s loans and debts.

 

During the year, the Group capitalised borrowing costs amounting to VND298 billion (2024: VND581 billion). These costs relate to general borrowings to finance for the construction of factories, infrastructure and product development. The capitalised borrowing costs relating to general borrowings are determined by applying a capitalization rate of 11.74% (2024: 11.56%).

 

Automotive CGU

 

The Group has performed impairment test after reviewing indicators of impairment and based its impairment calculations on most recent budgets, business plan and financial forecast. The recoverable amount of these property, plant and equipment as at 31 December 2025 has been determined based on using cash flow projections.

 

In 2025, as a result of updating the estimates and assumptions after taking into account of actual performance, the estimated fair value of the automotive CGU were less than carrying values. Therefore, management recorded an impairment of VND16,990,865 million (In 2024: nil) in the current year against property, plant and equipment (Note 10). The impairment charge is recorded within administrative expenses in the statement of profit or loss. Details and key assumptions have been presented in Note 11.

 

- 72 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

10.PROPERTY, PLANT AND EQUIPMENT (CONT’D)

 

Impairment of leased-out batteries

 

In 2025, the Group identified specific impairment indicators associated with individual assets of leased-out batteries due to competitive lease subscription fee provided to customers. The recoverable amount of leased-out batteries as at 31 December 2025 and 31 December 2024 has been determined based on fair value less costs of disposal (FVLCD) calculation using cash flow projections of contractual lease payments agreed with customers covering useful life of leased-out batteries. The discount rate applied to cash flow projections is 8.67% to 10.73% (2024: 8.67% to 10.22%). Impairment charges of VND116 billion (2024: VND441 billion) relating to leased-out batteries under the Automotive segments were recognised during the year.

 

The FVLCD measurement of the leased-out batteries is categorised at Level 3. Details and key assumptions have been presented in Note 11.

 

Impairment of battery production line

 

In 2025, the Group made a full impairment on an identified asset relating to battery production line as management assessed that the assets could not generate any future economic benefit. Impairment charges of VND1,350 billion (2024: VND2,665 billion) relating to these assets were recognised during the year.

 

Impairment of showroom assets

 

The Group identified specific impairment indicators associated with showroom assets in oversea markets. The recoverable amount of these assets as at 31 December 2025 has been determined based on fair value less costs of disposal (FVLCD) which calculation of fair value using the disposal cashflows. In 2025, the impairment charge of VND 969 billion (In 2024: VND 191 billion) relating to these assets were recognised during the year.

 

Impairment of North Carolina factory

 

In 2025, the Group identified specific impairment indicators associated with North Carolina factory. The recoverable amount of the factory as at 31 December 2025 has been determined based on fair value less costs of disposal (FVLCD) which calculation of fair value using the market approach. Impairment charge of VND 5,802 billion relating to these assets were recognised during the year.

 

- 73 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

11.INTANGIBLE ASSETS

 

   Software   License   Product
development
costs		   Goodwill   Construction
in progress		   Total 
   VND million   VND million   VND million   VND million   VND million   VND million 
Cost                        
1 January 2024   2,249,206    8,792,135    32,354,454    272,203    7,380,846    51,048,844 
Addition and transfer from construction in progress   430,042    4,470    11,925,704    –    (1,499,403)   10,860,813 
Acquisition of a subsidiary   64,694    –    577,467    –    8,861    651,022 
Disposals   (3,320)   –    (599,210)   –    (442,379)   (1,044,909)
                               
31 December 2024 and 1 January 2025   2,740,622    8,796,605    44,258,415    272,203    5,447,925    61,515,770 
Addition and transfer from construction in progress   636,193    761,000    7,336,006    –    (3,237,011)   5,496,188 
Disposals   –    –    (1,076,749)   –    –    (1,076,749)
                               
31 December 2025   3,376,815    9,557,605    50,517,672    272,203    2,210,914    65,935,209 
                               
Accumulated amortisation and impairment                              
1 January 2024   1,233,056    8,678,819    13,224,613    272,203    2,145,006    25,553,697 
Charge for the year   337,560    14,971    4,358,656    –    –    4,711,187 
Acquisition of subsidiaries   12,662    –    59,340    –    –    72,002 
Disposal   (1,223)   –    (90,591)   –    –    (91,814)
                               
31 December 2024 and 1 January 2025   1,582,055    8,693,790    17,552,018    272,203    2,145,006    30,245,072 
Charge for the year   399,558    21,567    6,734,183    –    –    7,155,308 
Impairment   594,846    –    7,943,131    –    –    8,537,977 
Disposal   –    –    (631,379)   –    –    (631,379)
                               
31 December 2025   2,576,459    8,715,357    31,597,953    272,203    2,145,006    45,306,978 
                               
Net book value                              
31 December 2024   1,158,567    102,815    26,706,397    –    3,302,919    31,270,698 
                               
31 December 2025   800,356    842,248    18,919,719    –    65,908    20,628,231 

 

- 74 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

11.INTANGIBLE ASSETS (CONT’D)

 

   Company 
   License   Total 
   VND million   VND million 
Cost        
1 January 2024   –    – 
Additions   12,625    12,625 
           
31 December 2024, and 1 January 2025   12,625    12,625 
Additions   –    – 
Translation differences   –    – 
           
31 December 2025   12,625    12,625 
           
Accumulated depreciation          
1 January 2024   –    – 
Charge for the year   1,158    1,158 
           
31 December 2024, and 1 January 2025   1,158    1,158 
Charge for the year   1,000    1,000 
Translation differences   –    – 
           
31 December 2025   2,158    2,158 
           
Net book value          
           
31 December 2024   11,467    11,467 
           
31 December 2025   10,467    10,467 

 

Impairment testing assets of the CGUs for the Group

 

The Group performed its annual impairment test of intangible assets not yet available for use and impairment test for the other long-term assets when circumstances indicate the carrying value of these assets may be impaired.

 

Given the Automotive CGU has intangible assets is not yet available for use as at 31 December 2025 and 2024, and additionally intangible assets with indefinite useful lives as at 31 December 2024, the Group performed impairment test for this CGU on those dates.

 

- 75 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

11.INTANGIBLE ASSETS (CONT’D)

 

Automotive CGU

 

   Group 
   Property, plant and equipment   Intangible assets (i)   Right-of-use assets   Total 
   VND million   VND million   VND million   VND million 
                 
Automotive CGU                
                 
As at 31 December 2024                
Net book value   41,553,299    27,450,970    4,665,017    73,669,286 
                     
Which includes impairment losses of:                    
As at 31 December 2024   (17,173,000)   (10,501,436)   (2,005,702)   (29,630,138)
                     
As at 31 December 2025                    
Net book value   66,641,202    33,315,482    2,353,857    102,310,541 
                     
Which includes impairment losses of:                    
As at 31 December 2025   (34,163,865)   (18,862,654)   (2,334,257)   (55,360,776)

 

(i)Included within are VND272,203 million of impairment losses recognised on goodwill.

 

The recoverable amount of the Automotive CGU of as 31 December 2025 and 31 December 2024 has been determined based on fair value less costs of disposal (FVLCD) calculation. For the purpose of fair value measurement, the current use of the assets is considered as the highest and best use. Accordingly, FVLCD is calculated using cash flow projections from financial budgets approved by management covering the period from the reporting dates to the end of next five financial years; and extrapolated for the remaining useful life of the CGU using a long-term growth rate of 4% (2024: 4%). The pre-tax discount rate applied to cash flow projections is 17.23% (2024: 16.7%). In 2025, as a result of updating the estimates and assumptions after taking into account of actual performance, the estimated fair value of the automotive CGU were less than carrying values. Therefore, management recorded an impairment of VND8,361,218 million (2024: nil) in the current year against intangible assets (Note 11). The impairment charge is recorded within administrative expenses in the statement of profit or loss.

 

- 76 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

11.INTANGIBLE ASSETS (CONT’D)

 

Impairment testing assets of the CGUs for the Group (cont’d)

 

Key assumptions used in fair value less costs of disposal calculations

 

-Revenue growth (comprising sale volume and sale price)

 

-Gross margin improvements

 

-Discount rate

 

The implications of the key assumptions for the recoverable amount and sensitivity of the recoverable amount to changes in assumptions are discussed below:

 

-Sale price of vehicles – The sales prices of vehicles in the model have been prepared based on comparing with other peers for each comparable car model type. Management assesses that the pricing of vehicles is one of the strategic competitive advantage of the Group when these products are launched to the markets, especially in international markets which account for a significant proportion of the prospective sales plan and related cash flow. Therefore, sales price of vehicles is identified as a significant assumption in the model. If sale prices of vehicles decrease on average by 0.5% more than the forecast, the Group will have a further impairment.

 

-Sales volume growth rate – When using industry data for sales volume, these assumptions are important because management assesses how the unit's position, relative to its competitors, might change over the forecast period. Management expects the Group's share of the target addressable market to be increasing during the forecast period and stabilizes afterwards. If sale volume growth rate decreases on average by 0.5% more than the forecast, the Group will have a further impairment.

 

-Gross margin improvements – The bases used to determine the values assigned to the gross margin improvements of automotive vehicles are from approved purchasing, production and distribution financial budgets. During the period of projection, these values have also reflected expected production capacity and internal resource efficiency improvements. If gross margin improvements decrease on average by 0.5% more than the forecast, the Group will have a further impairment.

 

-Discount rates – Discount rates represent the current market assessment of the risks specific to each CGU, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The pre-tax discount rate of 16.7% (2024: 16.7%). The post-tax discount rate of 13.3% (2024: 13.3%) is derived based on the specific circumstances of the Group and is derived from its weighted average cost of capital (“WACC”), which reflects market participants’ perspective. If discount rates increase by 0.5%, the Group will have a further impairment.

 

The level of fair value hierarchy: FVLCD measurement of the CGUs is categorised at Level 3.

 

- 77 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

12.OTHER NON-CURRENT ASSETS

 

   Group 
   2025   2024 
   VND million   VND million 
Financial assets        
Deposits (i)   2,230,168    1,689,809 
Others   13,079    25,900 
           
Total   2,243,247    1,715,709 

 

(i)This mainly comprises of cash deposits held as collateral for sales to commercial banking partner/leasing company with a resale value guarantee under the RVG program. The cash collateral is held in a restricted bank account owned by the commercial banking partner until it is used, as applicable, in settlement of the RVG at the end of the lease term.

 

13.ADVANCES TO SUPPLIERS

 

The advances to suppliers pertain primarily to amounts advances to suppliers, procurement agents who undertake the procurement of machinery, equipment, and component parts for the Group. It also includes advances to construction contractors engaged in the Group’s manufacturing projects and advances made for the purchase of other goods and services.

 

14.INVENTORIES

 

The classification of inventory balance as at each financial reporting date is as follows:

 

   Group 
   2025   2024 
   VND million   VND million 
         
Raw materials   18,034,169    14,286,598 
Finished goods   11,555,237    8,890,857 
Work in progress   4,435,889    3,074,867 
Goods in transit   3,808,783    2,470,494 
Tools and spare parts   308,159    239,671 
Merchandises   32,137    23,718 
           
TOTAL   38,174,374    28,986,205 

 

During the year, the amount of VND127,786 billion (2024: VND57,199 billion) was recognised as expenses for cost of inventories sold, and VND3,954 billion (2024: VND8,444 billion) was recognised as an expense for inventories carried at net realisable value respectively. These are recognised in cost of sales. The Group’s inventories are stated at the lower of cost and net realisable value.

 

- 78 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

14.INVENTORIES (CONT’D)

 

As at 31 December 2025, inventories with the carrying value of VND2,003 billion (2024: VND216 billion) were used as collateral for borrowings of the Group as presented in Note 21.1.

 

15.TRADE RECEIVABLES

 

15.1Short-term trade receivables

 

   Group 
   2025   2024 
   VND million   VND million 
         
Receivables from sale of finished goods and merchandises   4,065,619    5,220,947 
Receivables from disposal of assets and scrap   515,063    270,525 
Others   89,380    113,572 
           
TOTAL   4,670,062    5,605,044 

 

15.2Long-term trade receivables

 

   Group 
   2025   2024 
   VND million   VND million 
         
Receivables from sale of finished goods   563,512    615,650 
           
TOTAL   563,512    615,650 

 

- 79 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

16.PREPAYMENTS AND OTHER RECEIVABLES

 

   Group   Company 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
Short term                
Financial assets                
Cash collateral to support Standby letter of credit insurances and other financial assets (i)   1,169,580    2,514,778    –    – 
                     
Subtotal   1,169,580    2,514,778    –    – 
                     
Non-financial assets                    
Value added tax deductible   9,525,138    7,829,343    –    – 
Import tax to be refunded   1,938,341    1,281,331    –    – 
Deposit for purchasing goods   1,102,066    1,102,066    –    – 
Other receivables   203,892    326,425    –    – 
Other short-term prepaid expenses   729,756    650,746    4,674    5,636 
                     
Subtotal   13,499,193    11,189,911    4,674    5,636 
                     
TOTAL   14,668,773    13,704,689    4,674    5,636 
                     
Long-term                    
Non-financial assets                    
Other long-term prepaid expenses   76,392    692,456    35,552    75,304 
                     
TOTAL   76,392    692,456    35,552    75,304 

 

(i)This mainly comprises secured deposit held in designated bank accounts for being pledged for autonomous vehicle manufacturing surety bonds issued by counterparty; deposit for assets purchase from suppliers through letter of credit; cash receipts from customers at commercial banks which are temporarily frozen and checked before being transferred to current accounts of the Group.

 

- 80 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

17.CASH AND CASH EQUIVALENTS

 

   Group   Company 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
Cash on hand   4    28    –    – 
Cash at banks   7,135,090    2,223,405    124,425    85,044 
Cash in transit   216,904    –    –    – 
Cash equivalents   –    1,083,360    –    – 
                     
Total cash and cash equivalents (*)   7,351,998    3,306,793    124,425    85,044 

 

Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one to three months (2024: one to three months), depending on the immediate cash requirements of the Group, and earn interest at the respective short-term deposit rates.

 

(*)The table below details material balances held in foreign currencies by the Group and Company

 

   Group   Company 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
United States Dollar   3,091,513    426,497    117,962    82,243 
Euro   389,865    42,503    4    4 
Canadian Dollar   84,656    54,481    –    – 
Singapore Dollar   7,820    2,736    6,459    2,797 
Indonesia Rupiah   340,116    78,897    –    – 
Indian Rupee   1,204,389    135,703    –    – 

 

For the purpose of the consolidated statement of cash flows, cash and cash equivalents comprise items that are disclosed in this note.

 

- 81 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

18.OTHER LIABILITIES

 

18.1Other current liabilities

 

   Group 
   2025   2024 
   VND million   VND million 
         
Financial liabilities        
Provision for contract penalty, compensation and purchase commitments (i)   1,605,509    1,853,326 
Payables to employees   1,050,767    993,210 
Refunds to dealers   –    626,715 
Deposits for battery leases   278,633    343,811 
Others   700,499    530,206 
           
Subtotal   3,635,408    4,347,268 
           
Non-financial liabilities          
Warranty reserve   5,796,466    2,215,403 
Tax payables   3,055,904    2,041,629 
Provision for residual guarantee program   269,646    140,461 
Provision for statutory obligation expenses   311,885    207,666 
Vouchers for ICE vehicle buyers   206,294    222,466 
Others   736,666    336,641 
           
Subtotal   10,376,861    5,164,266 
           
TOTAL   14,012,269    9,511,534 

 

(i)The penalty and compensation costs incurred in 2025 were primarily related to estimated charges from suppliers due to failure to meet committed volume, discontinuation of the development and engineering change of certain future electric vehicle models. As of 31 December 2025, the Group was still in the negotiation process to finalise compensation amounts.

 

- 82 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

18.OTHER LIABILITIES (CONT’D)

 

18.2Other non-current liabilities

 

   Group 
   2025   2024 
   VND million   VND million 
Financial liabilities        
Others   537,674    94,886 
           
Non-financial liabilities          
Warranty reserve   15,154,795    3,414,032 
Provision for residual guarantee program   1,663,327    857,308 
Others   146,290    67,463 
           
TOTAL   17,502,086    4,433,689 

 

18.3Detail of movement of provisions

 

Details of movement of provisions during the year are as below:

 

   Provision for contract penalty and compensation   Warranty reserve   Provision for residual guarantee   TOTAL 
   VND million   VND million   VND million   VND million 
                 
At 1 January 2024:   1,560,258    2,476,011    –    4,036,269 
Provision made during the year   1,002,699    4,066,583    997,769    6,067,051 
Change in accounting estimate for pre-existing provisions   (189,313)   64,028    –    (125,285)
Utilised   (520,318)   (977,187)   –    (1,497,505)
                     
At 31 December 2024   1,853,326    5,629,435    997,769    8,480,530 
                     
In which:                    
                     
Current   1,853,326    2,215,403    140,461    4,209,190 
Non-current   –    3,414,032    857,308    4,271,340 
                     
At 1 January 2025:   1,853,326    5,629,435    997,769    8,480,530 
Provision made during the year   1,377,437    10,792,802    374,952    12,545,191 
Change in accounting estimate for pre-existing provisions   (791,544)   7,082,548    570,187    6,861,191 
Utilised   (833,710)   (2,553,524)   (9,935)   (3,397,169)
                     
At 31 December 2025   1,605,509    20,951,261    1,932,973    24,489,743 
                     
In which:                    
                     
Current   1,605,509    5,796,466    269,646    7,671,621 
Non-current   –    15,154,795    1,663,327    16,818,122 

 

- 83 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

18.OTHER LIABILITIES (CONT’D)

 

18.4Government grants

 

   Group 
   2025   2024 
   VND million   VND million 
Non-financial liabilities        
         
Government grants (Note 2.12)   2,093,808    1,892,983 
           
Current   2,093,808    – 
Non-current   –    1,892,983 

 

19.DEPOSITS AND DOWNPAYMENT FROM CUSTOMERS

 

   Group 
   2025   2024 
   VND million   VND million 
         
Refundable deposits   402,495    2,524,022 
Non-refundable downpayments (Note 8.1)   1,584,938    1,041,441 
           
As 31 December   1,987,433    3,565,463 

 

Deposits and down payments represent advances from customers for the sales of automobiles, e-scooters, and rendering of services.

 

- 84 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

20.DEFERRED REVENUE

 

Deferred revenue mainly related to service-type warranties and prepaid lease payments under operating lease agreement, and maintenance services consisted of the following:

 

   Group 
   2025   2024 
   VND million   VND million 
         
Beginning balance of the year   3,080,113    1,952,944 
Additions   1,671,082    1,256,877 
Revenue recognised   (356,532)   (129,708)
           
Ending balance of the year   4,394,663    3,080,113 
           
Current   122,324    147,786 
Non-current   4,272,339    2,932,327 

 

Deferred revenue is equivalent to the total transaction price allocated to the performance obligations that are unsatisfied, or partially unsatisfied, as at the statement of financial position dates. The remaining balance will be recognised over the performance period.

 

21.INTEREST-BEARING LOANS AND BORROWINGS

 

      Group   Company 
   Note  2025   2024   2025   2024 
      VND million   VND million   VND million   VND million 
                    
Short-term                   
Loans from banks and financial institutions  21.1   26,872,866    24,210,045    659,543    – 
Current portion of long-term Loans  21.2   5,258,070    7,279,170    659,917    3,941,272 
Current portion of bonds  21.3   2,485,000    7,605,487    –    – 
Others      –    29,384    –    29,384 
                        
TOTAL      34,615,936    39,124,086    1,319,460    3,970,656 
                        
Long-term                       
Loans from banks and financial institutions  21.2   36,214,061    16,924,140    10,818,036    2,325,417 
Bonds  21.3   11,334,167    5,938,750    –    – 
                        
TOTAL      47,548,228    22,862,890    10,818,036    2,325,417 

 

- 85 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

21.INTEREST-BEARING LOANS AND BORROWINGS (CONT’D)

 

21.1Short-term loans from banks

 

Details of short-term borrowings as at 31 December 2025 and 31 December 2024 are as follows:

 

Lenders  Ending balance  Maturity date  Description of collateral of loans in the ending balance
   Original
Currency		  Equivalent to
VND million		       
      2025   2024       
                  
Bank 1  VND   9,667,947    6,032,808   From January to October 2026  Shares and properties of affiliates; payment guaranteed provided by the ultimate parent company
Bank 2  VND   6,304,181    6,602,705   From January to December 2026  Properties of affiliates; machines and equipment of the Company; payment guaranteed provided by the ultimate parent company
Bank 3  VND   913,404    2,606,592   From January to December 2026  Shares of affiliates; machines and equipment of the Company; payment guaranteed provided by the ultimate parent company
Bank 4  VND   1,447,389    1,439,745   From February to September 2026  Shares, deposit and properties of affiliates; equipment and properties of the Company; payment guaranteed provided by the ultimate parent company
Bank 5  VND   962,672    1,088,269   From May to September 2026  Shares and properties of affiliates; equipment and properties of the Company; payment guaranteed provided by the ultimate parent company
Bank 6  USD   –    462,805      Vehicles under loan contract; payment guaranteed provided by the ultimate parent company
Bank 7  VND   3,869,863    3,984,964   From January to June 2026  Shares of affiliates; payment guaranteed provided by the ultimate parent company
Bank 8  VND   –    257,001      Shares of the ultimate parent company held by individuals and properties of an affiliate, payment guarantee provided by ultimate company.

 

- 86 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

21.INTEREST-BEARING LOANS AND BORROWINGS (CONT’D)

 

21.1Short-term loans from banks (cont’d)

 

Details of short-term borrowings as at 31 December 2025 and 31 December 2024 are as follows: (cont’d)

 

Lenders  Ending balance  Maturity date  Description of collateral of loans in the ending balance
   Original Currency  Equivalent to
VND million		       
      2025   2024       
Bank 9  USD   –    780,625      Letter of Comfort from the ultimate parent company and SBLC from a commercial bank
Bank 10   IDR   –    441,945      Payments guaranteed provided by the ultimate parent company and SBLC from a commercial bank
Bank 11(*)  USD   659,543    442,736   February 2026  Payments guaranteed by Standby Letter of Credit (“SBLC”) from a commercial bank
Bank 12  USD   1,049,077    –   April 2026  Payments guaranteed provided by the ultimate parent company and SBLC from a commercial bank
Bank 13  VND   998,811    –   From May to August 2026  Shares of affiliates and ultimate parent company; payment guaranteed provided by the ultimate parent company
Loans from others  VND   999,979    69,850   February 2026 to March 2026  Shares of affiliates; machines and equipment of the Company; payment guaranteed provided by the ultimate parent company
                    
TOTAL      26,872,866    24,210,045       

 

(*)As at 31 December 2025, the loan above is applicable for the company level

 

Details of interest rate during the year of short-term borrowings as at 31 December 2025 and 31 December 2024 are as follows:

 

Loans and borrowings  Currency  Interest rate applicable (per annum)
      2025  2024
Short-term Loans  VND  From 8.5% to 15%  From 8.5% to 15%
Short-term Loans  USD  From 6.47% to 7.51%  From 6.3% to 10.5%
Short-term Loans  EUR  Not applicable  From 5.8% to 6.73%
Short-term Loans  IDN  Not applicable  8.07%
Short-term Loans  INR  Not applicable  8.95%
Letter of Credit  VND  Not applicable  9.5%

 

- 87 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

21.INTEREST-BEARING LOANS AND BORROWINGS (CONT’D)

 

21.2Long-term loans from banks

 

Details of long-term borrowings as at 31 December 2025 and 31 December 2024 are as follows:

 

Lenders  Ending balance  Maturity date of borrowings
as at 31 December 2025		  Collateral
   Original Currency  Equivalent to
VND million
Group		       
      2025   2024       
                  
Syndicated loan No.1  USD   11,098,426    12,751,954   From March 2026 to September 2030  (i)
In which: current portion  USD   2,524,703    2,491,712       
Syndicated loan No.2  USD   4,309,592    –   June 2028  (i)
In which: current portion  USD   22,295    –       
Syndicated loan No.3  USD   2,891,381    –   June 2028  (i)
In which: current portion  USD   18,183    –       
Syndicated loan No.4  USD   1,576,144    1,970,809   From June 2026 to December 2026  (i)
In which: current portion  USD   1,576,144    447,924       
Syndicated loan No.5  USD   2,969,431    3,165,712   From May 2026 to November 2029  (i)
In which: current portion  USD   448,093    358,603       
Syndicated loan No.6  IDR   1,385,750    –   From June 2027 to April 2032  (ii)
In which: current portion  IDR   –    –       
Syndicated loan No.7(*)  USD   5,688,690    6,266,689   From May 2027 to May 2029  (i)
In which: current portion  USD   –    3,941,272       
Loan from a financial institution  USD   2,366,775    –   June 2028  (i)
In which: current portion  USD   958    –       
Bank 1  INR   3,054,330    –   From September 2027 to December 2034  (i)
In which: current portion  INR   –    –       

 

Details of long-term borrowings as at 31 December 2025 and 31 December 2024 are as follows: (cont’d)

 

Lenders  Ending balance  Maturity date of borrowings
as at 31 December 2025		  Collateral
   Original Currency  Equivalent to
VND million
Group		       
      2025   2024       
                  
Bank 2(*)  USD   2,555,435    –   September 2027  (i)
In which: current portion  USD   –    –       
Bank 3(*)  USD   2,500,834    –   From September 2027 to September 2028  (i)
In which: current portion  USD   –    –       
Bank 4(*)  USD   659,917    –   August 2026  (i)
In which: current portion  USD   659,917    –       
Bank 5  VND   407,649    –   From March 2028 to December 2035  (i)
In which: current portion  VND   –    –       
Loan from others  EUR   7,777    48,146   May 2026  (ii)
In which: current portion  EUR   7,777    39,659       
                    
TOTAL      41,472,131    24,203,310       
                    
In which:                   
Non-current portion      36,214,061    16,924,140       
Current portion      5,258,070    7,279,170       

 

(*)As at 31 December 2025, the loans above are applicable for the company level.

 

- 88 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

21.INTEREST-BEARING LOANS AND BORROWINGS (CONT’D)

 

21.2Long-term loans from banks (cont’d)

 

(i)As at 31 December 2025, these long-term loans are secured by:

 

-Certain inventories and properties held by the Group and the Debt Service Reserve Account at the offshore account management bank, the Revenue Account at a commercial bank with outstanding balance and accumulated other related benefits arising from such account;

 

-Certain shares of the Company and an affiliate of the Group held by the ultimate parent company;

 

-Certain properties held by affiliates;

 

-Payment guarantee from the Company’s Managing Director and CEO, ultimate parent company and certain commercial banks.

 

(ii)As of 31 December 2025, these long-term loans were secured by certain inventories.

 

Details of interest rate of borrowings as follows:

 

Loans and borrowings   Currency   Interest rate
         
As at 31 December 2025        
Secured loans   VND   Floating interest rate of 14.0% per annum
Secured loan without swap contract   USD   Floating interest rate, from 6.2% to 9.02% per annum
Secured loans with floating interest rate swapped for fixed interest rate (also fixed transaction date) under swap contracts   USD   Fixed interest rate under swap contract 4.1% to 6.58% per annum
Secured loans   EUR   Floating interest rate, from 4.76% to 5.81% per annum
Secured loans   IDR   Floating interest rate, from 8.46% to 9.43% per annum
Secured loans   INR   Floating interest rate, from 9.2% to 11.45% per annum
         
As at 31 December 2024        
Secured loan without swap contract   USD   Floating interest rate, from 7.12% to 9.08% per annum
Secured loans with floating interest rate swapped for fixed interest rate (also fixed transaction date) under swap contracts   USD   Fixed interest rate under swap contract 4.1% per annum
Secured loans   EUR   Floating interest rate, from 5.08% to 6.73% per annum

 

- 89 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

21.INTEREST-BEARING LOANS AND BORROWINGS (CONT’D)

 

21.3Bonds

 

Bonds  Ending balance  Maturity  Interest rate of borrowings
as at 31 December 2025		  Collateral
   Original Currency  VND million          
      2025   2024          
                     
Bond No.1  VND   –    1,995,793          
In which: current portion  VND   –    1,995,793          
Bond No.2  VND   –    4,992,091          
In which: current portion  VND   –    4,992,091          
Bond No.3  VND   –    617,603          
In which: current portion  VND   –    617,603          
Bond No.4  VND   4,939,583    –   May 2028  Fixed interest rate of 12.5%  (i)
In which: current portion  VND   –    –          
Bond No.5  VND   1,988,750    1,977,750   October 2026  Fixed interest rate at 13.5% per annum  (ii)
In which: current portion  VND   1,988,750    –          
Bond No.6  VND   3,955,000    3,951,000   October 2029  Fixed interest rate at 13.5% per annum  (ii)
In which: current portion  VND   –    –          
Bond No.7  VND   496,250    10,000   December 2026  Fixed interest rate at 13.5% per annum  (iii)
In which: current portion  VND   496,250    –          
Bond No.8  VND   2,439,584    –   June 2028  Fixed interest rate at 12% per annum  (iv)
In which: current portion  VND   –    –          
                       
TOTAL      13,819,167    13,544,237          
                       
In which:                      
Non-current portion      11,334,167    5,938,750          
Current portion      2,485,000    7,605,487          

 

- 90 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

21.INTEREST-BEARING LOANS AND BORROWINGS (CONT’D)

 

21.3Bonds (cont’d)

 

(i)This bond issue is secured by shares of affiliates under common control of the ultimate parent company; payment guaranteed by the ultimate parent company.

 

(ii)This bond issue is secured by shares and real estates of affiliates under common control of the ultimate parent company; payment guaranteed by the ultimate parent company.

 

(iii)This bond issue is secured by real estates of an affiliate under common control of the ultimate parent company; payment guaranteed by the ultimate parent,

 

(iv)This bond issue is secured by shares of an affiliate under common control of the ultimate parent company; payment guaranteed by the ultimate parent company.

 

22.SHORT-TERM ACCRUALS

 

   Group   Company 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
Financial liabilities                
Accruals for the purchase of raw material, machines and equipment, information technology systems and development costs   5,933,420    5,695,041    –    – 
Accrued construction costs of factories and infrastructures   930,999    337,019    –    – 
Accrued selling expenses (i)   8,623,580    3,241,109    –    – 
Interest accrual   443,682    398,839    –    – 
Others   2,589,326    1,360,796    162,086    211,111 
                     
TOTAL   18,521,007    11,032,804    162,086    211,111 

 

(i)As at 31 December 2025, accrued selling expenses include accrued expenses related to free-charging program applicable to customers purchasing electric vehicles (“EV customers”). The short-term accrued expense of VND3,658 billion and the long-term accrued expense of VND1,947 billion will be paid to V-Green JSC, a related party providing charging station services to EV customers.

 

- 91 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

23.LEASES

 

Group as a lessee

 

The Group has lease contracts for various items lands, showrooms, vessel, offices, factory and tooling used in its operations. Leases of land generally have lease terms between 21 and 99 years, showrooms, offices, workshop and others have lease terms between 2 and 69 years. The Group applies the short-term lease recognition exemption to its short-term leases (i.e., those leases that have a lease term of 12 months or less from the commencement date and do not contain a purchase option). It also applies the lease of low-value assets recognition exemption to leases that are considered to be low value. Lease payments on short-term leases and leases of low-value assets are recognised as expense on a straight-line basis over the lease term.

 

Set out below are the carrying amounts of right-of-use assets recognised and the movements during the years ended 31 December 2025 and 2024:

 

   Land   Show-rooms, workshop and others   Vessel   Total 
   VND million   VND million   VND million   VND million 
                 
Group                
                 
As at 1 January 2024   428,692    3,144,895    1,396,350    4,969,937 
Increase from acquisition of a subsidiary   –    1,464,332    –    1,464,332 
Additions   96,205    391,350    –    487,555 
Depreciation expenses   (10,484)   (744,461)   (253,692)   (1,008,637)
Termination   –    (715,391)   –    (715,391)
Impairment   –    (161,517)   –    (161,517)
Modifications   –    306,644    (736,315)   (429,671)
Currency realignment   –    63,233    –    63,233 
                     
As at 31 December 2024 and 1 January 2025   514,413    3,749,085    406,343    4,669,841 
Additions   –    3,673,017    –    3,673,017 
Depreciation expenses   (37,244)   (700,927)   (195,863)   (934,034)
Termination   -    (864,041)   –    (864,041)
Impairment   (30,190)   (470,083)   94,275    (405,998)
Modifications   –    –    (22,734)   (22,734)
Foreign realignment   –    143,483    –    143,483 
Currency realignment   –    (210,247)   (42,658)   (252,905)
                     
As at 31 December 2025   446,979    5,320,287    239,363    6,006,629 

 

- 92 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

23.LEASES (CONT’D)

 

Group as a lessee (cont’d)

 

(i)The Group has performed impairment test after reviewing indicators of impairment and based its impairment calculations on most recent budgets, business plan and financial forecast. The recoverable amount of these right-of-use assets as of 31 December 2025 has been determined based on using cash flow projections.

 

In 2025, the Group recorded an impairment loss of VND77 billion of showroom right-of-use assets due to the change in plan of these showrooms, and an impairment loss of VND 328,555 million of automotive right-of-use assets due to updating the estimates and assumptions after taking into account of actual performance. In 2024, the Group recorded an impairment loss of VND162 billion of showroom right-of-use assets due to the change in plan of these showrooms.

 

The Group entered into lease agreements with third parties. These leases generally provide for fixed monthly/quarterly/annually rent. The maturity analysis of lease liabilities is disclosed in Note 27. The carrying amounts and the movements of lease liabilities during the period are as follows:

 

   Group 
   2025   2024 
   VND million   VND million 
         
As at 1 January   7,422,134    6,849,151 
Increase from acquisition of a subsidiary   –    1,521,835 
Additions   3,673,018    370,542 
Interest expenses   941,970    1,155,283 
Payment   (1,672,954)   (1,536,412)
Lease modification   (22,734)   (429,239)
Revaluation of lease liability   50,330    109,693 
Termination   (1,736,237)   (811,973)
Currency realignment   (159,169)   193,254 
           
As at 31 December   8,496,358    7,422,134 
           
In which:          
Current   1,374,523    1,513,026 
Non-current   7,121,835    5,909,108 

 

The following are the amount recognised in the consolidated statements of profit or loss:

 

   2025   2024 
   VND million   VND million 
         
Depreciation expense of right-of-use assets   (934,034)   (1,008,637)
Gain/(loss) from termination contract   872,196    96,582 
Interest expense on lease liabilities   (941,970)   (1,155,283)
           
Total amounts recognised in profit or loss   (1,003,808)   (2,067,338)

 

- 93 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

23.LEASES (CONT’D)

 

Group as a lessee (cont’d)

 

The Group had total cash outflows for leases of VND1,673 billion (2024: VND1,536 billion) in 2024. The Group had non-cash additions to right-of-use assets of VND3,673 billion (2024: VND371 billion) and lease liabilities of VND3,673 billion (2024: VND371 billion) in 2025.

 

Group as a lessor

 

The Group, as lessor, lets out batteries of EV and e-scooter under operating lease and finance lease agreements. The leases have terms of 10 years.

 

Finance lease

 

The future minimum rental receivables under finance lease agreements are as follows:

 

   Group 
   2025   2024 
   VND million   VND million 
         
Less than 1 year   360,728    337,731 
From 1 to 2 years   360,728    337,731 
From 2 to 3 years   360,728    337,731 
From 3 to 4 years   360,728    337,731 
From 4 to 5 years   360,728    337,731 
More than 5 years   700,698    859,138 
           
TOTAL   2,504,338    2,547,793 

 

Net investment in leases, which is the sum of the present value of the future contractual lease payments, is presented on the consolidated statement of financial position as a component of prepaid expenses and other current assets for the current portion and as other assets for the non-current portion. Lease receivables relating to finance leases are presented on the consolidated statement of financial position as follows:

 

   Group 
   2025   2024 
   VND million   VND million 
         
Gross investment in the lease (i)   2,980,174    2,802,092 
Received cash   (475,836)   (254,299)
           
Total future minimum rental receivables   2,504,338    2,547,793 
Unearned interest income   (1,566,611)   (821,738)
           
Net Investment in the Lease   937,727    1,726,055 
           
In which:          
Current assets   82,343    165,980 
Non-current assets   855,384    1,560,075 

 

(i)Included within the gross investment in the lease are undiscounted future lease payment under finance lease arrangements as at lease commencement date.

 

- 94 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

23.LEASES (CONT’D)

 

Group as a lessor (cont’d)

 

Finance lease (cont’d)

 

   Group 
   2025   2024 
   VND million   VND million 
         
Revenue from finance lease agreement   386,091    1,213,322 
Lease income relating to variable lease payments not included in the measurement of the net investment in lease   56,139    64,585 
Cost of sales   (547,140)   (1,425,537)
Selling loss recognised at lease commencement date   (104,910)   (212,215)

 

Operating lease

 

The future minimum rental receivables under operating lease agreements are as follows:

 

   Group 
   2025   2024 
   VND million   VND million 
         
Less than 1 year   238,012    306,208 
From 1 to 2 years   220,740    301,122 
From 2 to 3 years   197,900    286,018 
From 3 to 4 years   181,776    262,790 
From 4 to 5 years   182,043    246,830 
More than 5 years   360,647    691,078 
           
TOTAL   1,381,118    2,094,046 

 

   Group 
   2025   2024 
   VND million   VND million 
         
Revenue from operating lease agreement   729,041    286,096 
Lease income from variable lease payments not included in the measurement of the lease receivable   232,438    96,917 
Cost of sales   (1,403,726)   (528,142)

 

- 95 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

24.COMMITMENTS AND CONTINGENCIES

 

Commitments related to the development of the projects and products

 

The Group has signed contracts relating to the purchase and installation of machinery and equipment, information technology systems and deployment of site clearance, construction of factories and development of products. The estimated commitment amount of these contracts as of 31 December 2025 was VND12,038 billion (2024: VND14,243 billion).

 

Commitments related to the minimum purchase commitment

 

The Group signed contracts with certain suppliers to agree on a committed minimum purchase volume, such that the annual purchase volume from these suppliers is not lower than the quantity agreed upon by the two parties in the signed contract and/or other accompanying documents.

 

In case of shortfall purchase, the suppliers reserve the right to revise the quotation and component pricing or are entitled to compensation from the Group. If the specified minimum quantities are not reached, the Group is relieved from the obligation when the necessary waivers are obtained.

 

Comeau v. VinFast Auto Ltd., et al., 1:24-cv-02750 (E.D.N.Y.)

 

On 12 April 2024, a putative shareholder, Jeremie Comeau (the “Lead Plaintiff”), filed a class action lawsuit against our Company, our former and current Chief Executive Officer, our former and current Chief Financial Officer, and members of our Board of Directors (collectively, but excluding the Company’s current Chief Financial Officer, the “ Defendants”) (the “Comeau Action”). The Plaintiff alleges that the Defendants made false and misleading statements in offering documents filed in June and July 2023, in connection with the Company’s public listing.

 

The lawsuit purports to bring claims on behalf of investors in the Company who purchased securities (i) “pursuant and/or traceable to” the offering documents issued in connection with the 14 August 2023 merger among the Company, Black Spade Acquisition Co., and Neuvo Tech Limited, and/or (ii) “between 15 August 2023 and 17 January 2024.” The Plaintiff alleges that Defendants violated Section 10(b) of the Securities Exchange Act of 1934 (the “Exchange Act”) and Rule 10b-5 thereunder, Section 20(a) of the Exchange Act, as well as Sections 11 and 15 of the Securities Act of 1933 (the “Securities Act”) and seek damages and other relief.

 

On 1 November 2024, the Court consolidated the Comeau and Qian cases into one and appointed the Nannicinis as Lead Plaintiffs, and their counsel, Robbins Geller, as lead counsel. On 15 January 2025, the Lead Plaintiffs filed their Amended Complaint, which, among other changes, removed our current Chief Financial Officer as a defendant.

 

On 22 January 2025, Lead Plaintiffs filed a Corrected Amended Complaint adding an additional purchase certification from co-Lead Plaintiff Dr. Filippo Nannicini. In accordance with the Court’s rules, on 17 March 2025 the Comeau Defendants filed a letter setting forth the bases for their anticipated motion to dismiss and requesting a pre-motion conference with the Court, and Lead Plaintiffs filed a response on 16 April 2025

 

On 22 January 2025, Lead Plaintiffs filed a Corrected Amended Complaint adding an additional purchase certification from co-Lead Plaintiff Dr. Filippo Nannicini. In accordance with the Court’s rules, on 17 March 2025 the Comeau Defendants filed a letter setting forth the bases for their anticipated motion to dismiss and requesting a pre-motion conference with the Court, and Lead Plaintiffs filed a response on 16 April 2025

 

On 18 March 2025, the Court granted the Comeau Defendants’ request for a pre-motion conference. The parties attended a pre-motion conference on 15 May 2025, at which the Court granted the Defendants’ request to file a motion to dismiss. The Defendants’ motion to dismiss was fully briefed as of 27 October 2025. The Court held oral argument on the motion on 15 January 2026, and reserved decision. At this stage, the final outcome and therefore ultimate financial liability on account of this matter is unascertainable. Accordingly, no provision has been made in the Group’s consolidated financial statements.

 

- 96 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

25.FINANCIAL INSTRUMENTS

 

Set out below, is an overview of financial assets and liabilities held by the Group:

 

25.1Financial assets

 

   Group   Company 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
Debt instruments at amortised cost   28,481,624    20,514,719    7,685,970    3,625,700 
Cash and cash equivalents (Note 17)   7,351,998    3,306,793    124,425    85,044 
Short-term amount due from related parties   8,438,865    4,203,463    4,571,667    3,540,656 
Short-term other receivables (Note 16)   1,169,580    2,514,778    –    – 
Short-term trade receivables (Note 15.1)   4,670,062    5,605,044    –    – 
Current net investment in the lease (Note 23)   82,343    165,980    –    – 
Short-term investments (*)   3,051,790    823,597    –    – 
Other non-current assets (Note 12)   2,243,247    1,715,709    –    – 
Non-current net investment in the lease (Note 23)   855,384    1,560,075    –    – 
Long-term amount due from related parties (Note 29.3)   54,843    3,630    2,989,878    – 
Long-term trade receivables (Note 15.2)   563,512    615,650    –    – 
                     
Financial assets at fair value through profit or loss   6,204,503    1,103,827    –    – 
Short-term cross-currency interest rate swaps (Note 25.3)   –    185,787    –    – 
Long-term cross-currency interest rate swaps (Note 25.3)   387,503    –    –    – 
Other long-term investment (Note 25.3)   5,817,000    918,040    –    – 
                     
    34,686,127    21,618,546    7,685,970    3,625,700 
                     
In which:                    
Total current   24,764,638    16,805,442    4,696,092    3,625,700 
Total non-current   9,921,489    4,813,104    2,989,878    – 

 

(*)Short-term investments as of 31 December 2025 mainly included certain 12-month deposits at banks used as collaterals for some loans and standby letters of credit from banks.

 

- 97 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

25.FINANCIAL INSTRUMENTS (CONT’D)

 

25.2Financial liabilities

 

   Group   Company 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
Financial liabilities at amortised cost   213,427,023    210,573,156    22,484,842    56,497,684 
Short-term interest-bearing loans and borrowings (Note 21)   34,615,936    39,124,086    1,319,460    3,970,656 
Trade payables   32,630,360    20,791,192    36,210    – 
Short-term amount due to related parties   34,872,639    64,037,426    44,585    49,990,500 
Short-term accruals (Note 22)   18,521,007    11,032,804    162,086    211,111 
Short-term lease liabilities (Note 23)   1,374,523    1,513,026    –    – 
Other current liabilities (Note 18.1)       3,635,408    4,347,268    –    – 
Long-term interest-bearing loans and borrowings (Note 21)   47,548,228    22,862,890    10,818,036    2,325,417 
Long-term amount due to related parties (Note 29.3)   29,711,485    40,531,203    10,104,465    – 
Long-term accruals   2,857,928    329,267    –    – 
Long-term lease liabilities (Note 23)   7,121,835    5,909,108    –    – 
Other non-current liabilities (Note 18.2)   537,674    94,886    –    – 
                     
Financial liabilities at fair value through profit or loss   24,439,747    21,655,938    38,590,668    20,536,326 
Financial liability in respect of DPS2 (Note 26.1)   24,332,136    21,619,612    –    – 
Financial liability in respect of DPS (Note 26)   –    –    38,577,604    20,500,000 
Cross-currency interest rate swaps (Note 25.3)   94,547    –    –    – 
Long-term warrant instrument liabilities (Note 25.3)   13,064    36,326    13,064    36,326 
                     
    237,866,770    232,229,094    61,075,510    77,034,010 
                     
In which:                    
Total current   150,076,556    162,465,414    40,139,945    74,672,267 
Total non-current   87,790,214    69,763,680    20,935,565    2,361,743 

 

- 98 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

25.FINANCIAL INSTRUMENTS (CONT’D)

 

25.3Fair value hierarchy

 

A.Fair value of financial instruments that are carried at fair value:

 

The fair value of financial assets and liabilities by classes that are carried at fair value are as follows:

 

   Quoted prices in active markets for identical instruments   Significant other observable inputs   Significant unobservable inputs   Total 
   (Level 1)   (Level 2)   (Level 3)     
   VND million   VND million   VND million   VND million 
As at 31 December 2025                
Financial assets:                
Financial assets at fair value through profit or loss                
- Derivative assets – cross-currency interest rate swaps contracts (i)   –    –    387,503    387,503 
- Other long-term investments (ii)   –    –    5,817,000    5,817,000 
                     
    –    –    6,204,503    6,204,503 
                     
In which:                    
Current portion   –    –    –    – 
Non-current portion   –    –    6,204,503    6,204,503 
                     
Financial liabilities:                    
Financial liabilities at fair value through profit or loss                    
- Financial liabilities at fair value through profit or loss in respect of DPS2 (Note 26)   –    –    24,332,136    24,332,136 
- Derivative liability – cross-currency interest rate swaps contracts (i)   –    –    94,547    94,547 
- Long-term warrant instrument liabilities (iii)   13,064    –    –    13,064 
                     
    13,064    –    24,426,683    24,439,747 
In which:                    
Current portion   –    –    24,426,683    24,426,683 
Non-current portion   13,064    –    –    13,064 

 

- 99 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

25.FINANCIAL INSTRUMENTS (CONT’D)

 

25.3Fair value hierarchy (cont’d)

 

A.Fair value of financial instruments that are carried at fair value: (cont’d)

 

The fair value of financial assets and liabilities by classes that are carried at fair value are as follows: (cont’d)

 

   Quoted prices in active markets for identical instruments   Significant other observable inputs   Significant unobservable inputs   Total 
   (Level 1)   (Level 2)   (Level 3)     
   VND million   VND million   VND million   VND million 
As at 31 December 2024                
Financial assets:                
Financial assets at fair value through profit or loss                
- Derivative assets – cross-currency interest rate swaps contracts (i)   –    –    185,787    185,787 
- Other long-term investments (ii)   –    –    918,040    918,040 
                     
    –    –    1,103,827    1,103,827 
                     
In which:                    
Current portion   –    –    185,787    185,787 
Non-current portion   –    –    918,040    918,040 
                     
Financial liabilities:                    
Financial liabilities at fair value through profit or loss                    
- Financial liabilities at fair value through profit or loss in respect of DPS2 (Note 26)   –    –    21,619,612    21,619,612 
- Long-term warrant instrument liabilities   36,326    –    –    36,326 
                     
    36,326    –    21,619,612    21,655,938 
In which:                    
Current portion   –    –    21,619,612    21,619,612 
Non-current portion   36,326    –    –    36,326 

 

- 100 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

25.FINANCIAL INSTRUMENTS (CONT’D)

 

25.3Fair value hierarchy (cont’d)

 

A.Fair value of financial instruments that are carried at fair value: (cont’d)

 

Reconciliations of significant assets and liabilities categorised within Level 3 under the fair value hierarchy are as follow:

 

   1 January 2025   Initial recognition   Net change in fair value recognised in consolidated statement of profit or loss   31 December 2025 
   VND million   VND million   VND million   VND million 
Financial assets:                
Financial assets at fair value through profit or loss                
- Derivative assets – cross-currency interest rate swaps contracts (i)   185,787    –    201,716    387,503 
- Other long-term investments (ii)   918,040    5,395,000    (496,040)   5,817,000 
                     
In which:                    
Current portion   185,787    –    (185,787)   – 
Non-current portion   918,040    5,395,000    (108,537)   6,204,503 
                     
Financial liabilities:                    
Financial liabilities at fair value through profit or loss                    
- Financial liabilities at fair value through profit or loss in respect of DPS2 (Note 26)   21,619,612    –    2,712,524    24,332,136 
- Derivative liability – cross-currency interest rate swaps contracts (i)   –    –    94,547    94,547 
                     
In which:                    
Current portion   21,619,612    –    2,807,071    24,426,683 
Non-current portion   –    –    –    – 

 

- 101 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

25.FINANCIAL INSTRUMENTS (CONT’D)

 

25.3Fair value hierarchy (cont’d)

 

A.Fair value of financial instruments that are carried at fair value: (cont’d)

 

Reconciliations of significant assets and liabilities categorised within Level 3 under the fair value hierarchy are as follow: (cont’d)

 

       Net change in fair value recognised in consolidated statement of profit or loss             
   1 January 2024   Unrealised gain/loss   Realised gain/loss   Payment during the year   Acquisition of a subsidiary   31 December 2024 
   VND million   VND million       VND million   VND million   VND million 
Financial assets:                        
Financial assets at fair value through profit or loss                        
- Derivative assets – cross-currency interest rate swaps contracts (i)   614,134    (428,347)   503,679    (503,679)   –    185,787 
- Other long-term investments (ii)   –    –    –    –    918,040    918,040 
                               
In which:                              
Current portion   548,010    (362,223)   503,679    (503,679)   –    185,787 
Non-current portion   66,124    (66,124)   –    –    918,040    918,040 
                               
Financial liabilities:                              
Financial liabilities at fair value through profit or loss                              
- Convertible debenture   1,190,475    –    –    (1,190,475)   –    – 
- Financial liabilities at fair value through profit or loss in respect of DPS2 (Note 26)   18,258,063    3,361,549    –    –    –    21,619,612 
                               
In which:                              
Current portion   18,258,063    3,361,549    –    –    –    21,619,612 
Non-current portion   1,190,475    –    –    (1,190,475)   –    – 
                               

- 102 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

25.FINANCIAL INSTRUMENTS (CONT’D)

 

25.3Fair value hierarchy (cont’d)

 

A.Fair value of financial instruments that are carried at fair value (cont’d)

 

(i)The Group entered into non-transferable cross-currency interest rate swap (“CCIRS”) contracts with financial institutions for syndicated loans No.1, No.2,. Under the terms of the CCIRS contracts, the Group will receive floating interests based on outstanding USD notional amount every interest payment date, and in turn will pay fixed interest for such loans based on the outstanding VND notional amount. In addition, at each principal repayment date, the Group will pay a fixed amount in VND based on the USD-VND exchange rate for such loans at inception of the CCIRS for receiving a notional amount in USD with the financial institutions. The CCIRS contract of the loan No.2 was expired in November 2024. The outstanding notional amounts of the Group’s derivative instruments were maximum equal to the carrying value of syndicated loans No. 1 as disclosed in Note 21.2.

 

As of 31 December 2025, the total net amount of fair value of the CCIRS derivative assets were VND387.5 billion (2024: VND185.8 billion) and total net amount of fair value of the CCIRS derivative liabilities were VND94.5 billion (2024: nil). The Group opted not to designate the CCIRS under hedge accounting therefore, the whole fair value change was charged to the consolidated statement of profit or loss. Net change in fair value of CCIRS derivative instruments for 2025 was recorded as net gain on financial instruments at fair value through profit or loss in the consolidated statement of profit or loss.

 

(ii)Other long-term investments include an investment in Storedot and an investment in the investment cooperation and business opportunity exploration agreement with Saigon Glory Limited Liability Company. Regarding the investment in Storedot, the Group acquired 3.75% voting shares in Storedot Ltd., equivalent to 2,219,670 series D preference shares in the investee, from its acquisition of a subsidiary during the year (Note 6). As of 31 December 2025, management assessed that the investment could not generate any future economic benefits; accordingly, the fair value of the investment was reduced by VND918 billion to zero. With respect to the investment in the agreement with Saigon Glory Limited Liability Company, please refer to the next section under the caption ‘Agreement with SGC’.

 

- 103 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

25.FINANCIAL INSTRUMENTS (CONT’D)

 

25.3Fair value hierarchy (cont’d)

 

A.Fair value of financial instruments that are carried at fair value (cont’d)

 

Agreement with SGC

 

In September 2025, VinFast Vietnam entered into an investment cooperation and business opportunity exploration agreement with Saigon Glory Limited Liability Company (“SGC”), which has a five-year term (hereafter referred to as the “Agreement with SGC”). Under this arrangement, VinFast Vietnam provided funds for the acquisition, development, and construction of real estate projects in accordance with the business plan stipulated in the Agreement with SGC, which may be amended by mutual agreement of the parties. VinFast Vietnam has planned to contribute, up to VND20,700.0 billion, while SGC has contributed development rights, resources, and expertise necessary to the real estate projects. Under the current contract terms, VinFast Vietnam is entitled to 90% of the pre-tax residual profits generated from cooperation projects during the cooperation term. This entitlement is expected to be equivalent to a minimum of approximately VND20,814.0 billion, subject to VinFast Vietnam contributing the full planned amount and approving the related cash distributions to the projects. The profit is finalized by both parties every six months.

 

As of 31 December 2025, VinFast Vietnam contributed VND 5,395 billion, of which VND 3,567 billion had been deployed by SGC to acquire certain real estate properties (the “BCC properties”) from a third-party company. The remaining VND 1,828 billion represents advance payment for future investment opportunities.

 

The third-party company acquired a portion of a real estate project located in southern Vietnam from a related party of the Group and subsequently became the project developer of the acquired portion, responsible for the development and construction of the real estate properties. SGC is responsible for selling the BCC properties to customers and shares profit from such sales as yield returns to VinFast Vietnam. The investment is secured by collateral, including shares in a listed company owned by certain third-party individuals (business partners of SGC) and SGC’s property rights under sales and purchase agreements with the aforementioned third-party company.

 

With reference to the guidance on Financial Asset in FRS 109, the Group accounted for the Agreement with SGC as an debt instrument in accordance with FRS 109 and the investment is accounted for as fair value through profit and loss and thus measured at fair value at each reporting date, with changes recognised in the consolidated statement of profit or loss. Fair value is based on discounted expected cash flows and market-participant assumptions and is classified within Level 3 of the fair value hierarchy. The fair value of the investment was VND5,817 billion as of 31 December 2025, and the Group recognised a fair value gain of VND422 billion for the period.

 

- 104 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

25.FINANCIAL INSTRUMENTS (CONT’D)

 

25.3Fair value hierarchy (cont’d)

 

B.Fair value of financial instruments by classes that are not carried at fair value and whose carrying amounts are reasonable approximation of fair value

 

The financial assets and liabilities by classes whose carrying amounts are not carried at fair value and reasonably approximate fair value are as follows:

 

Trade receivables (Note 15), other receivables (Note 16), cash and cash equivalent (Note 17), amount due from/to related parties (Note 29), short-term investments (Note 25.1), other non-current assets (Note 12), trade payables, loans and borrowings (Note 21), other liabilities (Note 18), accruals (Note 22) and lease (Note 23).

 

The carrying amount of these financial assets and liabilities are reasonable approximation of fair values, either due to their short-term nature or that they are floating rate instruments that are re-priced to market interest rates on or near the reporting date, or they are fixed rate instruments that approximate market interest rates on the reporting date.

 

25.4Valuation processes

 

For recurring and non-recurring fair value measurements categorised within Level 3 of the fair value hierarchy, the Group uses its valuation processes to decide its valuation policies and procedures and analyse changes in fair value measurements from period to period.

 

The Group’s fair value methodology and the governance over its models includes a number of controls and other procedures to ensure appropriate safeguards are in place to ensure its quality and adequacy. The responsibility of ongoing measurement resides with the business divisions. Once submitted, fair value estimates are also reviewed and challenged by the management.

 

The valuers validate fair value estimates by:

 

-Benchmarking prices against observable market prices or other independent sources;

 

-Re-performing model calculations; and

 

-Evaluating and validating input parameters.

 

Management also challenges the model calibration on at least an annual basis or when significant events in the relevant markets occur. Management is responsible for ensuring that the final reported fair value figures are in compliance with FRS and proposes adjustments when needed. When relying on third-party sources (e.g., broker quotes, or other micro or macro-economic inputs), management is also responsible for:

 

-Verifying and challenging the approved list of providers; and

 

-Understanding the valuation methodologies and sources of inputs and verifying their suitability for FRS reporting requirements.

 

- 105 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

25.FINANCIAL INSTRUMENTS (CONT’D)

 

25.4Valuation processes (cont’d)

 

Valuation techniques and specific considerations for Level 3 inputs are further explained below.

 

Valuation methods and assumptions

 

The significant unobservable inputs used in the fair value measurements categorised within level 3 of the fair value hierarchy, together with a quantitative sensitivity analysis as at 31 December 2025 and 31 December 2024 is shown below:

 

Item   Valuation technique   Valuation date   Significant unobservable inputs   Rate (%/annum)
CCIRS contract of the loans   Discounted Cash Flow (“DCF”)   31 December 2024   Interpolated SOFR for subsequent years   4.45%
        31 December 2025   Interpolated SOFR for subsequent years   3.33% – 3.77%
Financial liabilities in respect of DPS2 (i)   Binomial option pricing model – Lattice model and Available Market Price (AMP)   31 December 2024  

Credit spread of the Company
Volatility

   13.6%

62.6%
                 
    Binomial option pricing model – Lattice model and Available Market Price (AMP)   31 December 2025  

Credit spread of the Company
Volatility

   13.6%

71.07%
                 
Investment in StoreDot   Option Pricing Model   31 December 2024   Volatility   53.8% - 90.8%
            Risk free rate   2.5%
Investment under Agreement with SGC   Income approach based on Discounted Cashflow   31 December 2025   Company Specific Risk Premium
(Saigon Glory)		   10% - 12%
            Risk free rate   3.7%
            Equity risk premium   5%
            Country Risk Premium   3.7%

  

(i)The Group has never declared or paid any cash dividends on its ordinary shares, and the Group does not anticipate any dividend payments in the foreseeable future. The expected volatility at valuation date is estimated based on historical volatilities of comparable companies.

 

An increase/decrease in the credit spread of the Group would result in a decrease/increase in fair value of the financial liabilities in respect of DPS2.

 

- 106 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

26.DIVIDEND PREFERENCE SHARES

 

26.1Dividend preference shares recognised as financial liabilities

 

Dividend preferred shares (“DPS2”) issued under the series of financial instruments and contracts, together with all rights, obligations and features, were treated as a bundle of instruments (collectively referred to as the ‘Financial liabilities in respect of DPS2’), and are measured at fair value through profit or loss in the consolidated statements of the Company. Details are as below:

 

-In 2022, the Company and Vingroup JSC entered into Subscription Agreements with certain investors pursuant to which, Vingroup JSC issued to such investors, and such investors subscribed for, USD625 million aggregate principal amount of exchangeable bonds (“EB”). Investors of EB has the right to require Vingroup JSC to redeem the EB upon the occurrence of certain events as specified in transaction documents. Concurrent with the entry into the EB, the Company entered into a Deed Poll, pursuant to which, investors of EB have the rights to exchange their EB for a number of the Company’s ordinary shares at the exchange rate determined in transaction documents. Under the terms of the EB, Vingroup JSC shall use the proceeds from the issuance of EB (net of fees and expenses incurred in connection with such issuance) to contribute capital into VinFast Vietnam via the issuance of DPS2.

 

-In May and June 2022, VinFast Vietnam issued DPS2 amounting to VND11,745.72 billion and VND2,249.64 billion to Vingroup JSC, respectively. DPS2 are non-voting, non-redeemable and entitled to dividend at specified rates. DPS2 shall be converted automatically into ordinary shares of VinFast Vietnam at the earlier of the transfer of such DPS2 from Vingroup JSC to the Company and the date falling five years and three months after the issuance date of DPS2, at the conversion rate of 1:1, and such conversion is dependent on whether appropriate approvals are obtained.

 

-In July 2022, the Company entered into a put option agreement with Vingroup JSC, pursuant to which Vingroup JSC will have the right to require the Company to purchase DPS2 on the earlier of Vingroup JSC’s receipt of a notice to redeem the EB or the maturity date of the EB.

 

-In 2024, Vingroup JSC partially redeemed the EB. The terms of the remaining EB (“Revised EB”) were revised in accordance with the Deed of Amendment and Supplement and Supplemental Deed Poll both dated in April 2024. On 16 July 2024, Vingroup JSC and VinFast signed a Notice Letter relating to the put option agreement (as amended and supplemented) to clarify the amount of the put option considerations, which include the amount required for Vingroup JSC to fulfil its redemption obligations resulting from the relevant redemptions. The costs to be incurred by Vingroup JSC, and therefore comprising the put option consideration, is understood to also include an interest amount at the rate of 9% accruing over any actual payment amount that has been paid by Vingroup JSC.

 

-In October 2025, the conversion ratios and exchange ratios of the Company’s Dividend Preferred Shares (“DPS”) into common shares of VinFast Vietnam and the Company were modified after restructuring transaction (Note 6).

 

-As of 31 December 2025, the fair value of the financial liabilities in respect of DPS2 was VND24,332,136 million. Change in fair value of this instrument was recorded as a loss on financial instruments at fair value through profit or loss in the consolidated statement of profit or loss.

 

- 107 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

26.DIVIDEND PREFERENCE SHARES (CONT’D)

 

26.2Dividend preference shares recognised as equity instruments

 

Other dividend preference shares (DPS) held by Vingroup JSC, are recognised as equity instruments and presented as non-controlling interest in the consolidated financial statements of the Company. Details are as below:

 

Preference shares  Timing of issuance (year)  No of shares   Dividend (%) (v) 

Other

principles

              
Dividend Preference Shares 1 (“DPS 1”)  2022   120,254,284   0.01%/year  (i), (ii), (iii), (iv), (vi)
Dividend Preference Shares 3 (“DPS 3”)  2022   916,612,490   9%/year  (i), (ii), (iii), (iv), (vi)
Dividend Preference Shares 4 (“DPS 4”)  2022   2,578,216,022   0.01%/year  (i), (iv)
Dividend Preference Shares 5 (“DPS 5”)  2024 and 2025   3,542,643,385   12%/year (unpaid dividends shall be accumulative)  (i), (ii), (iii), (iv), (vi)
               
TOTAL      7,157,726,181       

 

(i)Par value of share: 10,000 VND. These DPS carry no voting right and are not redeemable at the request of DPS shareholder.

 

(ii)DPS shareholder has the right (but not the obligation) to convert DPS into ordinary shares of VinFast Vietnam and VinFast Investment and Development, as stipulated in the transaction documents.

 

(iii)DPS shareholder has the right (but not the obligation) to exchange DPS into ordinary shares of the Company, as stipulated in the Share Exchange Agreements dated 31 December 2024 which were entered into between Vingroup JSC and the Company. The number of the Company’s ordinary shares to be issued shall be equal to the number of DPSs requested to be exchanged divided by a pre-determined exchange rate and rounded down to the nearest whole number. In all cases, the exchange rates shall be subject to customary adjustment terms.

 

(iv)Unless DPSs have been converted into ordinary shares of VinFast Vietnam and VinFast Investment and Development before these companies are dissolved, liquidated, or bankrupt, in the event of these companies’ dissolution, liquidation, or bankruptcy, DPS shareholder shall have the same rights as ordinary shareholders to receive the remaining assets of these companies as specified in the transaction documents.

 

(v)The payment of dividends shall be made provided that net retained earnings for the year of VinFast Vietnam and VinFast Investment and Development, after paying all dividends, is positive and the payment of dividends in the year does not lead to any breach of these companies’ obligations. Dividend may be paid at a time determined by shareholders of these companies.

 

(vi)In October 2025, the conversion ratios and exchange ratios of DPS1, DPS3, DPS5 into common shares of VinFast Vietnam and the Company were modified after restructuring transaction (Note 3), which triggered extinguishment accounting. DPS1, DPS3 and DPS5, following this amendment, are still qualified for equity classification. As a result, DPS1, DPS3 and DPS5 were remeasured at fair value and the differences between their fair value and carrying amount at extinguishment date were recorded as a change in other reserves.

 

- 108 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

27.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

 

The Group’s financial liabilities, other than derivatives, comprise trade payables, other liabilities, accruals, loans and borrowings, amounts due to related parties and lease liabilities. The main purpose of these financial liabilities is to finance the Group’s operations. The Group also has various financial assets such as trade receivables, other assets, amount due from related parties, and cash and short-term bank deposits and other financial assets which arise directly from its operations.

 

The Group is exposed to market risk, credit risk and liquidity risk. Management reviews and agrees policies for managing each of these risks which are summarized below.

 

Market risk

 

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: interest rate risk, currency risk and other price risk, such as equity risk. Financial instruments affected by market risks include loans and borrowings, corporate bonds, financial assets and financial liabilities at fair value through profit or loss and term deposits.

 

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and the proportion of financial instruments in foreign currencies are all constant.

 

The following assumptions have been made in calculating the sensitivity analysis:

 

-The consolidated statements of financial position sensitivity relate to derivatives and other financial assets at fair value through profit or loss; and/or
   
-The sensitivity of the relevant consolidated statements of profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held on 31 December 2025 and 31 December 2024.

 

Interest rate risk

 

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s debt obligations with floating interest rates. To manage this, the Group enters into interest rate swaps for loan contracts, in which it agrees to exchange, at specified intervals, the difference between fixed and variable rate interest amounts calculated by reference to an agreed-upon notional principal amount.

 

- 109 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

27.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

 

Market risk (cont’d)

 

The following table demonstrates the sensitivity to a reasonably possible change in interest rates expected over the current financial year. With all other variables held constant, the Group’s profit before tax and its equity is affected through the impact on floating rate borrowings as follows:

 

Interest rate sensitivity

 

The following table demonstrates the sensitivity to a reasonably possible change in interest rates expected over the current financial year. With all other variables held constant, the Group’s profit before tax and its equity is affected through the impact on floating rate borrowings as follows:

 

  

Increase/(decrease)

in basis points

   Effect on loss before tax 
   2025   2024   2025   2024 
           VND million   VND million 
                 
VND   175    73    (200,004)   (96,036)
VND   (175)   (73)   200,004    96,036 
                     
USD   79    57    (114,662)   (71,354)
USD   (79)   (57)   114,662    71,354 
                     
IDR   68    –    (4,790)   – 
IDR   (68)   –    4,790    – 
                     
INR   305    –    (26,036)   – 
INR   (305)   –    26,036    – 

 

The assumed movement in basis points for interest rate sensitivity analysis is based on the currently observable market environment.

 

Foreign currency risk

 

Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group’s exposure to the risk of changes in foreign currency rates relate primarily to the Group’s operating activities (when revenue or expenses are denominated in a different currency from the Group’s functional currency) and the Group’s borrowings in foreign currency. To manage this, the Group enters into foreign exchange rates swap and forward foreign exchange for loan contracts.

 

Foreign currency sensitivity

 

The following table demonstrates the sensitivity to a reasonably possible change in the foreign exchange rate with respect to VND expected over the following financial year using historical trends, with all other variables held constant, of the Group’s profit before tax and its equity (due to changes in the fair value of monetary assets and liabilities).

 

- 110 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

27.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

 

Market risk (cont’d)

 

Foreign currency sensitivity (cont’d)

 

  

Change in

foreign exchange rate

   Effect on profit
before tax		 
   2025   2024   2025   2024 
           VND million   VND million 
                 
USD   +5%   +5%   (3,114,183)   (1,013,553)
USD   -5%   -5%   3,114,183    1,013,553 
                     
EUR   +20%   +6%   (125,266)   (103,872)
EUR   -20%   -6%   125,266    103,872 
                     
GBP   +17%   +8%   (2,133)   1,544 
GBP   -17%   -8%   2,133    (1,544)
                     
INR   +7%   –    (169,125)   – 
INR   -7%   –    169,125    – 
                     
IDR   +5%   –    24,091    – 
IDR   -5%   –    (24,091)   – 

 

Commodities price risk

 

The Group is affected by the volatility of certain commodities that are used for its manufacturing of automotive and other goods. The Group manages its commodity price risk by keeping close watch on relevant information and situation of commodity market in order to properly manage timing of purchases, construction plans and inventories level. The Group does not employ any derivative financial instruments to hedge its commodity price risk.

 

Credit risk

 

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or a customer contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and lending to related parties.

 

Counterparty credit risk is managed by each business unit subject to the Group’s established policy, procedures and control relating to counterparty credit risk management. Credit quality of a counterparty is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding counterparty receivables and contract assets are regularly monitored and any shipments to major counterparties are generally covered by letters of credit or other forms of credit insurance obtained from reputable banks and other financial institutions.

 

An impairment analysis is performed at each reporting date to measure expected credit losses. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions.

 

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets as disclosed in the following notes:

 

- 111 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

27.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

 

Credit risk (cont’d)

 

Trade receivables (Note 15)

 

Customer credit risk is managed when the Group generally requires the customers to make deposits for purchasing of finished goods and merchandises. The Group manages this credit risk by regularly monitoring the collection progress from these customers and assesses if there is any impairment on the outstanding balance, which as at 31 December 2025 and 31 December 2024 is immaterial.

 

Other receivables (Note 16)

 

Other credit risk also arises from receivables from corporate customers and individuals. The Group manages this credit risk by regularly monitoring the collection progress from these customers and assesses if there is any impairment on the outstanding balance, which as at 31 December 2025 and 31 December 2024 is immaterial.

 

Short-term investments (Note 25) and amount due from related parties (Note 29)

 

Customer credit risk also arises from amount due from related parties (Note 29). Certain loans are not secured or secured by the securities. The Group manages this credit risk by regularly monitoring the collection progress from these counterparties and assesses if there is any impairment on the outstanding balance, which as at 31 December 2025 and 31 December 2024 is immaterial.

 

Deposits with banks

 

Credit risk from balances with banks is managed by Group’s treasury in accordance with the Group’s policy, which is to place deposits with reputable banks and financial institutions. As such, management assessed the credit risk to be low and no impairment is made on the outstanding balance, which as at 31 December 2025 and 31 December 2024 is immaterial.

 

Allowance for Expected Credit Losses

 

The loss allowance recognised in the year is impacted by a variety of factors, as described below:

 

-Additional allowances for new financial instruments recognised during the year, as well as releases for financial assets derecognised in the year;
   
-Impact on the measurement of ECL due to changes in PDs, LGDs and EADs in the year, arising from regular refreshing of inputs to models;
   
-Impact on the measurement of ECL due to changes in LGDs arising from the effect of pledging of own shares and properties by various debtors to fulfil the collateral requirements of the lending contracts; and
   
-Impacts on the measurement of ECL due to changes made to models and assumptions.

 

For the years ended 31 December 2025 and 2024, the allowance for expected credit loss for the Group and the Company is immaterial.

 

Liquidity risk

 

The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank loans and corporate bonds. The Group has managed this liquidity risk by arranging for long-term credit facilities with the banks, or issuing long-term corporate bonds, to ensure that the loans and bonds will be repaid after the Group has completed and put into commercial operations its projects.

 

- 112 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

27.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

 

Liquidity risk (cont’d)

 

The Group determines the liquidity risk based on terms of contracts. For accruals and other liabilities, the Group uses its judgement to determine the appropriate level of liquidity risk exposed to these liabilities.

 

The table below summarises the maturity profile of the Group and the Company’s financial liabilities as at 31 December 2025 based on contractual undiscounted payments.

 

   On demand  

Less than

1 year

  

1 to 5

years

  

Over

5 years

   Total 
   VND million   VND million   VND million   VND million   VND million 
Group                    
                     
As at 31 December 2025                    
Financial liabilities in respect of DPS2   24,332,136    –    –    –    24,332,136 
Interest-bearing loans and borrowings   –    40,954,901    53,361,315    3,559,623    97,875,839 
Trade payables   –    32,630,360    –    –    32,630,360 
Accruals   –    18,077,325    2,857,928    –    20,935,253 
Lease liabilities   –    1,459,937    4,107,576    93,902,949    99,470,462 
Amount due to related parties   –    41,857,325    18,334,403    138,817,475    199,009,203 
Others   –    3,635,408    537,674    –    4,173,082 
                          
    24,332,136    138,615,256    79,198,896    236,280,047    478,426,335 
                          
Company                         
                          
As at 31 December 2025                         
Financial liabilities in respect of DPS   38,577,604    –    –    –    38,577,604 
Interest-bearing loans and borrowings   –    2,344,706    12,292,416    –    14,637,122 
Trade payables   –    36,210    –    –    36,210 
Accruals   –    162,086    –    –    162,086 
Amount due to related parties   –    44,585    10,104,465    –    10,149,050 
                          
    38,577,604    2,587,587    22,396,881    –    63,562,072 

 

- 113 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

27.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

 

Liquidity risk (cont’d)

 

The table below summarises the maturity profile of the Group and the Company’s financial liabilities as at 31 December 2024 based on contractual undiscounted payments. (cont’d)

 

   On demand  

Less than

1 year

  

1 to 5

years

  

Over

5 years

   Total 
   VND million   VND million   VND million   VND million   VND million 
Group                    
                     
As at 31 December 2024                    
Financial liabilities in respect of DPS2   15,272,181    6,347,431    –    –    21,619,612 
Interest-bearing loans and borrowings   –    43,475,002    25,908,494    2,377,092    71,760,588 
Trade payables   –    20,791,192    –    –    20,791,192 
Accruals   –    11,032,804    329,267    –    11,362,071 
Lease liabilities   –    1,763,947    4,780,147    12,235,561    18,779,655 
Amount due to related parties   –    75,696,393    31,721,420    137,384,280    244,802,093 
Others   –    4,347,268    94,886    –    4,442,154 
                          
    15,272,181    163,454,037    62,834,214    151,996,933    393,557,365 
                          
Company                         
                          
As at 31 December 2024                         
Financial liabilities in respect of DPS   20,500,000    –    –    –    20,500,000 
Interest-bearing loans and borrowings   –    4,826,386    2,724,196    –    7,550,582 
Accruals   –    211,111    –    –    211,111 
Amount due to related parties   –    49,990,500    –    –    49,990,500 
                          
    20,500,000    55,027,997    2,724,196    –    78,252,193 

 

- 114 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

27.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

 

Capital management

 

For the purpose of the Group’s capital management, capital includes issued capital and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Group’s capital management is to ensure that it maintains healthy capital ratios in order to support its business and maximize shareholder value.

 

The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To maintain or adjust the capital structure, the Group may adjust payment to shareholders. In order to achieve this overall objective, the Group’s capital management, among other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. The Group monitors financial covenant ratios by reference to the Group’s financial information and Vingroup’s consolidated financial information, as specified in each loan agreement. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. During the current period, the Group did not breach any of its loan covenants, nor did it default on any of its obligations under its loan agreements.

 

The Group primary requirements for liquidity are to finance working capital, capital expenditures and general corporate purposes. Since the Group inception, the Group have financed its operations primarily though debt and equity financing activities, including support from its parent company, Vingroup, and its Chairman, Mr. Pham Nhat Vuong in the form of borrowings, corporate loan guarantees, grant and capital contributions.

 

There were no changes made in the objectives, policies and processes during the years ended 31 December 2025 and 2024.

 

- 115 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

27.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

 

Changes in liabilities arising from financing activities

 

   1 January 2025  

Cash

Inflows

   Cash outflows   Foreign exchange   New lease   Others1   31 December 2025 
   VND million   VND million   VND million   VND million   VND million   VND million   VND million 
Group                            
                             
Year ended 31 December 2025                            
Borrowings from external parties, business cooperation contract, finance lease   62,331,079    64,582,395    (45,720,034)   694,668    –    372,354    82,260,462 
Borrowings from related parties   78,834,370    41,497,937    (46,710,903)   –    –    (32,691,269)   40,930,135 
Lease liabilities   7,422,134    –    (1,672,954)   –    3,673,018    (925,840)   8,496,358 
Financial liabilities in respect of DPS2 and warrant liabilities   21,655,938    –    –    –    –    2,689,262    24,345,200 
Interest payable   6,780,443    –    (13,189,286)   –    –    6,855,550    446,707 
                                    
    177,023,964    106,080,332    (107,293,177)   694,668    3,673,018    (23,699,943)   156,478,862 

 

   1 January 2024  

Cash

inflows

   Cash outflows   Foreign exchange   New lease   Others1   31 December 2024 
   VND million   VND million   VND million   VND million   VND million   VND million   VND million 
Group                            
                             
Year ended 31 December 2024                            
Borrowings from external parties, business cooperation contract, convertible debenture and finance lease   71,255,406    36,173,922    (59,721,852)   918,724    –    13,704,879    62,331,079 
Borrowings from related parties   39,812,992    62,431,898    (12,155,053)   –    –    (11,255,467)   78,834,370 
Lease liabilities   6,849,151    –    (1,536,412)   –    370,542    1,738,853    7,422,134 
Financial liabilities in respect of DPS2 and warrant liabilities   18,395,120    –    –    –    –    3,260,818    21,655,938 
Interest payable   2,797,194    –    (9,371,333)   –    –    13,354,582    6,780,443 
                                    
    139,109,863    98,605,820    (82,784,650)   918,724    370,542    20,803,665    177,023,964 

 

- 116 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

27.FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (CONT’D)

 

Changes in liabilities arising from financing activities (cont’d)

 

   1 January 2025  

Cash

Inflows

   Cash outflows   Foreign exchange   Others1   31 December 2025 
   VND million   VND million   VND million   VND million   VND million   VND million 
Company                        
                         
Year ended 31 December 2025                        
Interest-bearing loans and borrowings   6,296,073    5,788,294    (267,811)   164,767    156,173    12,137,496 
                               
    6,296,073    5,788,294    (267,811)   164,767    156,173    12,137,496 

 

   1 January 2024  

Cash

inflows

   Cash outflows   Foreign exchange   Others1   31 December 2024 
   VND million   VND million   VND million   VND million   VND million   VND million 
Company                        
                         
Year ended 31 December 2024                        
Interest-bearing loans and borrowings   5,946,887    –    (839,366)   275,427    913,125    6,296,073 
                               
    5,946,887    –    (839,366)   275,427    913,125    6,296,073 

 

1This includes the effect of business combination, change in the fair value of DPS, the effect of accrued but not yet paid interest on interest-bearing loans and borrowings, the effect of lease liabilities (except for additions and payment) and amortisation of issuance cost into the consolidated statement of profit or loss.

 

- 117 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

28.SHARE CAPITAL, OTHER RESERVES AND LOSS PER SHARE

 

   Group and Company 
   2025   2024 
   No. of shares   VND million   No. of shares   VND million 
Issued and fully paid ordinary shares                
At 1 January      2,338,812,496    10,164,467    2,337,788,498    10,029,207 
Share based payment to employees   723,334    62,135    914,000    115,629 
Share based payment to service providers   –    –    109,998    19,631 
Warrants exercised and additional paid to convert into capital   180    53    –    – 
                     
At 31 December      2,339,536,010    10,226,655    2,338,812,496    10,164,467 

 

As at 31 December 2025, there were 2,339,536,010 (2024: 2,338,812,496) ordinary shares of the Company issued and outstanding. The Company’s ordinary shares have no par value as there is no such concept under Singapore law. The issue of ordinary shares is disclosed in the consolidated and stand-alone statements of change in equity.

 

Loss per share

 

Basic loss per share and diluted loss per share have been calculated for the years ended 31 December 2025 and 2024. Details are as below:

 

   Group 
   2025   2024 
   VND million   VND million 
         
Net loss attributable to parent   (119,857,494)   (73,212,746)
           
Net loss attributable to parent adjusted for the effect of dilution   (119,857,494)   (73,212,746)
           
Weighted average number of ordinary shares for basic earnings
 per share		   2,339,145,514    2,338,415,230 
           
Weighted average number of ordinary shares adjusted for the effect of dilution   2,339,145,514    2,338,415,230 
           
    VND    VND 
           
Basic loss per share   (51,240)   (31,309)
Diluted loss per share   (51,240)   (31,309)

 

For the year ended 31 December 2025, the Company had potential ordinary shares, including unvested shares, convertibles notes and warrants which could potentially dilute basic loss per share in the future but were not included in the calculation of diluted loss per share because they are anti-dilutive for the current year.

 

- 118 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

28.SHARE CAPITAL, OTHER RESERVES AND LOSS PER SHARE (CONT’D)

 

   Group   Company 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
Other reserves                
Allocation of commitment shares issued under Standby Equity Subscription Agreement   (89,224)   (46,944)   (89,224)   (46,944)
Deemed contribution through awards granted by shareholders to the Company’s employees and others   475,600    475,600    –    – 
Capital contribution reserve   6,738,358    6,738,358    –    – 
Acquisition of VinFast Vietnam   (56,978,175)   (56,978,175)   –    – 
Changing the term of previously issued DPS (Note 26.2)   53,964,520    27,498,417    –    – 
Deemed contribution from owner through free electric charging offered to customers   5,900,756    5,900,756    –    – 
Acquisition of VinES JSC   2,261,091    2,261,091    –    – 
Deemed contribution from owners through donation (i)   64,000,173    41,000,000    –    – 
Spin-off of Novatech (Note 6)   40,792,257    –    –    – 
Others   (133)   –    (133)   – 
                     
TOTAL   117,065,223    26,849,103    (89,357)   (46,944)

 

(i)This represents financial supports in form of cash injected into the Group from the Managing Director and CEO of the Company, being recognised in the statements of changes in equity.

 

- 119 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

29.TRANSACTIONS WITH RELATED PARTIES

 

29.1Investments in subsidiaries

 

The Company’s significant investments in subsidiaries are presented in Note 1.

 

   Company 
   2025   2024 
   VND million   VND million 
         
Shares, at cost        
At the beginning of the year   78,035,537    56,048,591 
Derivative liability arising from DPS’ (Note 26.1, 26.2)   23,730,301    20,500,000 
Share based payment to employees in VinFast Vietnam   –    52,513 
Disposal of investment from spin-off of Novatech   (60,936,965)   – 
Capital contribution to VinFast UK   –    15,479 
Capital contribution to VinFast India Ltd.   653,760    346,119 
Capital contribution to PT VinFast Automobile Indonesia   2,859    764,656 
Capital contribution to VinFast Middle East   35,063    174,212 
Capital contribution to VinFast Mexico   –    2,772 
Capital contribution to VinFast Philippines   118,453    118,209 
Capital contribution to VinFast Auto (Thailand) Co., Ltd.   –    967 
Capital contribution to VinFast Kazakhstan   1,407    11,529 
Capital contribution to VinFast Nigeria   –    490 
Dissolution of VinFast Nigeria   (490)   – 
           
    41,639,925    78,035,537 
Allowance for impairment          
Beginning balance   57,377,612    46,577,612 
Charge for the year   35,979    10,800,000 
Reversal of impairment during the year   (9,632,930)   – 
Disposal of investment from spin-off of Novatech (Note 6)   (40,751,477)   – 
           
Ending balance   7,029,184    57,377,612 
           
At the end of the year   34,610,741    20,657,925 

 

- 120 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

29.TRANSACTIONS WITH RELATED PARTIES (CONT’D)

 

29.1Investments in subsidiaries (Cont’d)

 

Investments in subsidiaries with operations in Vietnam with carrying amounts, net of impairment losses, amounting to VND22,960,571 million (2024: VND8,511,216 million), were tested for impairment at the end of the reporting year. The recoverable amount of the investments were measured based on its value in use computed using a discounted cash flow based on a five-year cash flow projection.

 

For the year ended 31 December 2025, as the recoverable amount was higher than the carrying amount of the Company’s investment in VinFast Trading and Production JSC due to the restructuring disclosed in Note 6. As such, the Company recorded a reversal of impairment losses amounting to VND9,632,930 million.

 

The recoverable amounts were based on pre-tax discount rate and long-term growth rate of 16.7% and 4.0% (2024: 16.7% and 4.0%), respectively.

 

Sensitivity to changes in assumptions

 

The implication of the change in the two key assumptions for the recoverable amount of the subsidiaries is shown below:

 

-Discount rates – Discount rates represent the current market assessment of the risks specific to each investment, taking into consideration the time value of money and individual risks of the underlying assets that have not been incorporated in the cash flow estimates. The pre-tax discount rate of 16.7% (2024: 16.7%). The post-tax discount rate of 13.3% (2024: 13.3%) is derived based on the specific circumstances of the investee and is derived from its weighted average cost of capital (“WACC”), which reflects market participants’ perspective. If discount rates increase by 0.5%, the investment will be further impaired.

 

29.2Transactions with related parties

 

The related parties with which the Group had significant transactions during the years ended 31 December 2025 and 2024 presented are as follows:

 

Related parties   Relationship with the Company
     
Pham Nhat Vuong   Managing Director and CEO
Vingroup JSC   Ultimate Parent
VIG   Shareholder
VinBus Ecology Transport Services Limited Liability Company (“VinBus Ecology LLC”)   Entity under common control
Vincom Retail JSC  

Associate of the Ultimate Parent Company

(Entity under common control until 30 March 2024)

Vincom Retail Operation Company Limited (“Vincom Retail Operation LLC”)  

Associate of the Ultimate Parent Company

(Entity under common control until 30 March 2024)

Vincom Retail Landmark 81 Company Limited (“Vincom Retail Landmark 81 LLC”)  

Associate of the Ultimate Parent Company

(Entity under common control until 30 March 2024)

Vinhomes Industrial Zone Investment JSC (“VHIZ JSC”)   Entity under common control
Vinhomes Hai Phong Industrial Zone Investment JSC (“VHIZ Hai Phong JSC”)   Entity under common control
Vinhomes Ha Tinh Industrial Zone Investment JSC (“VHIZ Ha Tinh JSC”)   Entity under common control
Vinhomes JSC   Entity under common control
Vinpearl JSC   Entity under common control
VinSmart Research and Manufacture JSC (“VinSmart JSC”)   Entity under common control
VinFast Lithium Battery Pack Limited Liability Company (“VinFast Lithium Battery Pack LLC”)   Entity under common control
Green and Smart Mobility Joint Stock Company (“GSM JSC”)   Entity under common control
PT XanhSM Green and Smart Mobility Indonesia (“PT Xanh SM Indo”)   Entity under common control
Green and Smart Mobility Philippines Inc (“GSM Philippines”)   Entity under common control
Ecology Development and Investment Joint Stock Company (“Ecology JSC”)   Entity under common control
Suoi Hoa Urban Development and Investment Joint Stock Company (“Suoi Hoa JSC”)  

Associate of the Ultimate Parent Company

(Merged into Vincom Retail Operation LLC in September 2025)

VinCSS Internet Security Services Joint Stock Company (“VinCSS JSC”)   Entity under common control
VinSmart Future JSC (formally known as VinITIS Transmission Infrastructure and Information Technology Solution)   Entity under common control

 

- 121 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

29.TRANSACTIONS WITH RELATED PARTIES (CONT’D)

 

29.2Transactions with related parties (cont’d)

 

The related parties with which the Group had significant transactions during the years ended 31 December 2025 and 2024 presented are as follows:

 

Related parties   Relationship with the Company
     
VinApp Joint Stock Company (“VinApp JSC”)  

Entity under common control

(Merged into VinSmart Future JSC in November 2025)

VinAI Artificial Intelligence Application and Research Joint Stock Company (“VinAI JSC”)   Entity under common control
V-Green Global Charging Stations Development Joint Stock Company (“V-Green JSC”)   Entity under common control
Green Future Services and Trading Joint Stock Company (“Green Future JSC”)   Entity under common control
Vinpearl Australia Pty Ltd.   Entity under common control
Green Future USA   Entity under common control
V-G High-Tech Energy Solutions Co., Ltd (“V-G”)   Joint Venture

 

- 122 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

29.TRANSACTIONS WITH RELATED PARTIES (CONT’D)

 

29.2Transactions with related parties (cont’d)

 

Significant transactions with related parties during the year were as follows:

 

      Group 
      2025   2024 
Related party  Transactions  VND million   VND million 
            
Vingroup JSC  Borrowings   41,470,796    60,854,614 
   Borrowings (converted from interest payables)   7,308,731    2,792,567 
   Interest expense   9,464,120    8,014,773 
   Capital contribution by offsetting against borrowings   40,000,000    20,000,000 
   Sale of vehicles   86,190    9,777 
   Purchase of service   64,506    35,288 
   Vingroup guarantee for VinFast’s payment obligations   (i)   (i)
              
VIG  Cash received for disposal of ICE assets (inclusive of VAT receivable)   –    1,642,444 
   Sponsorship contribution accounted for as deemed contribution   173    74,904 
              
Pham Nhat Vuong  Sponsorship contribution - accounted for as deemed contribution   23,000,000    8,277,310 
   Deemed contribution from owner through free electric charging offered to customers   –    5,900,755 
   Cash received from spin-off of Novatech transaction (ii)   39,828,245    – 
              
Vinhomes JSC  Sale of smart devices   79,830    5,681 
   Sale of vehicles   94,193    1,613,572 
   Service fee   82,103    82,934 
              
Vinpearl JSC  Loan receivable   –    300,000 
   Interest receivable   –    2,071 
   Purchase of hospitality vouchers   39,303    55,423 
   Purchase of other services   178,718    126,523 
   Hotel service expenses   30,038    19,370 
              
VHIZ JSC  Interest expense   –    1,485,300 
   Payment on behalf   –    1,580 
              
VHIZ Hai Phong  Interest expense   1,992,475    283,217 
   Service fee   117,372    14,364 
              
VHIZ Ha Tinh JSC  Origination of finance lease (iii)   3,422,114    – 
   Unwinding interest from finance lease   250,674    – 
   Service fee   57,101    – 

 

(i)There are certain loans and borrowings of VinFast guaranteed by ultimate parent (Note 21).

 

(ii)Details are presented in Note 6.

 

(iii)In June 2025, VinFast Vietnam signed a long-term contract of 69 years to lease of the factory and auxiliary technical infrastructure of VinFast Manufacturing Complex project in Ha Tinh from VHIZ Ha Tinh JSC for VinFast Vietnam’s production activities.

 

- 123 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

29.TRANSACTIONS WITH RELATED PARTIES (CONT’D)

 

29.2Transactions with related parties (cont’d)

 

Significant transactions with related parties during the year were as follows: (cont’d)

 

      Group 
      2025   2024 
Related party  Transactions  VND million   VND million 
            
Vincom Retail Operation LLC  Rental showrooms and charging stations   111,896    174,200 
   Borrowings   –    2,130,000 
   Interest expense   –    138,128 
   Asset borrowing fee   74,346    – 
              
Suoi Hoa JSC  Borrowings   –    230,000 
              
GSM JSC  Revenue from sale of vehicles   16,897,059    9,852,019 
   Late payment penalty interest   163,676    245,817 
   Other revenue   –    53,796 
   Transportation supporting cost   164,576    – 
   Commission fee   92,004    – 
              
PT Xanh SM Indo  Revenue from sale of vehicles   3,329,993    1,654,307 
              
GSM Philippines  Revenue from sale of vehicles   1,632,491    – 
              
VinFast Lithium
Battery Pack LLC		  Purchase of assets, materials and tools   13,056    138,425 
              
VinBus Ecology LLC  Revenue from sale of electric buses   27,545    87,963 
   Loan receivables   –    9,900,000 
   Interest receivables   –    180,197 
   Interest expense   –    327,755 
   Borrowings   –    18,474,000 
              
VinSmart JSC  Purchase of property, plant and equipment and goods   260    225,082 
   Sponsorship contribution - accounted for as deemed contribution   –    12,000,000 
              
Ecology JSC  Revenue from sale of electric buses   –    21,545 
              
VinCSS JSC  Information technology service fee   23,929    61,353 
              
VinSmart Future JSC  Information technology service fee   350,738    103,642 
              
Vincom Retail Landmark 81 LLC  Borrowings   –    140,000 
              
Novatech JSC  Net proceeds from the spin-off transaction   701,402    – 

 

- 124 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

29.TRANSACTIONS WITH RELATED PARTIES (CONT’D)

 

29.2Transactions with related parties (cont’d)

 

Significant transactions with related parties during the year were as follows: (cont’d)

 

   Group 
   2025   2024 
Related party  Transactions  VND million   VND million 
            
V-Green JSC  Revenue from business cooperation contracts   232,438    55,298 
   Payment on behalf   1,842,209    650,066 
   Charging subsidies   1,547,218    179,197 
   Purchase of assets   114,841    – 
   Sub-lease income   121,660    – 
              
VinApp JSC  Purchase of voucher   301,611    – 
              
Green Future JSC  Revenue from sale of goods   1,786,321    52,347 
   Disposal of asset   267,255    27,082 
   Vehicle rental fee   62,948    – 
              
VinAI JSC  Purchase of fixed assets, tools and materials   68,812    20,993 
              
V-G  Purchase of materials   4,158,982    – 
              

- 125 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

29.TRANSACTIONS WITH RELATED PARTIES (CONT’D)

 

29.2Transactions with related parties (cont’d)

 

Significant transactions with related parties during the year were as follows: (cont’d)

 

      Company 
      2025   2024 
Related party  Transactions  VND million   VND million 
            
VinFast JSC  Share based payment   –    52,513 
              
Vingroup USA  Loan repayment   –    419,220 
   Interest Income   327,871    353,884 
              
VinFast France  Lending   –    690,480 
   Loan repayment   225,552    2,776,716 
   Interest Income   –    140,087 
              
VinFast UK  Capital contribution   –    15,479 
              
VinFast India  Capital contribution   653,760    346,119 
   Lending   655,675    – 
              
VinFast Indonesia  Capital contribution   2,859    764,656 
              
VinFast ME  Capital contribution   35,063    174,212 
              
VinFast Mexico  Capital contribution   –    2,772 
              
VinFast Nigeria  Capital contribution   –    490 
              
VinFast Philippines  Capital contribution   118,453    118,209 
   Lending   2,596,473    – 
   Loan repayment   236,043    – 
              
VinFast Thailand  Capital contribution   –    967 
              
VinFast Kazakhstan  Capital contribution   1,407    11,529 
              
VinFast Germany  Lending   860,883    – 
   Proceeds of borrowings   844,512    – 
   Repayment from borrowings   844,512    – 
              
Pham Nhat Vuong  Cash received from spin-off of Novatech transaction   39,828,245    – 

 

- 126 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

29.TRANSACTIONS WITH RELATED PARTIES (CONT’D)

 

29.2Transactions with related parties (cont’d)

 

Significant transactions with related parties during the year were as follows: (cont’d)

 

Terms and conditions of transactions with related parties during the years

 

During the year ended 31 December 2025 and 2024, the Group sold/purchased goods and rendered/purchased services to/from related parties based on negotiated prices.

 

The sales to and purchases from related parties are made on terms agreed among parties. Outstanding balances at the year-end are unsecured and interest free (except for loans to and borrowings from related parties which are subject to interest rate from 5.2% to 15% per annum) and settlement occurs in cash or offsetting against debts. There has been no guarantee provided or received for any related party receivables or payables.

 

During the year ended 31 December 2025 and 2024, the Group has not made provision for doubtful debts relating to amounts due from related parties. This assessment is undertaken each financial period through the examination of the financial position of the related parties and the market in which the related parties operate.

 

Capital Funding Agreement

 

In November 2024, VinFast Vietnam, has entered into the Grant Agreement with Mr. Pham, Asian Star and VIG (“Grantors”) that provides a framework for us to additionally receive in cash or in kind value of up to VND50,000 billion, in amounts to be mutually agreed, at such time as required by VinFast and subject to financial capacity of Grantors at that time. As of 31 December 2025, Mr. Pham Nhat Vuong disbursed an aggregate amount of VND28,000 billion to VinFast in accordance with this Grant Agreement.

 

29.3Amounts due to and due from related parties

 

Amounts due to and from related parties as at 31 December 2025 and 2024:

 

   Group   Company 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
Amounts due from related parties                
Short-term loans, advance to and receivables from related parties   8,491,889    4,272,121    4,571,667    3,540,656 
Short-term loans (Note 29.3a)   10,491    –    3,326,221    2,565,501 
Short-term advance to and receivables (Note 29.3b)   8,481,398    4,272,121    1,245,446    975,155 
Long-term loans to and receivables from related parties   54,843    3,630    2,989,878    – 
Long-term loans (Note 29.3a)   –    –    2,989,878    – 
Long-term receivables
(Note 29.3b)		   54,843    3,630    –    – 
                     
TOTAL   8,546,732    4,275,751    7,561,545    3,540,656 
                     
Amounts due to related parties                    
Short-term payables to and borrowings from related parties   34,942,775    64,126,981    44,585    49,990,500 
Short-term payables
(Note 29.3b)		   6,065,944    9,245,891    –    49,990,500 
Short-term borrowings
(Note 29.3a)		   28,876,831    54,881,090    44,585    – 
Long-term payables to and borrowings from related parties   29,711,485    40,531,203    10,104,465    – 
Long-term payables
(Note 29.3b)		   17,658,181    16,577,923    10,104,465    – 
Long-term borrowings
(Note 29.3a)		   12,053,304    23,953,280    –    – 
                     
TOTAL   64,654,260    104,658,184    10,149,050    49,990,500 

 

- 127 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

29.TRANSACTIONS WITH RELATED PARTIES (CONT’D)

 

29.3Amounts due to and due from related parties (cont’d)

 

(a)Detail of loans to and borrowings from related parties:

 

 As at 31 December 2025:

 

   Group   Company    
Related parties  VND million   VND million   Interest rate per annum  Maturity date
               
Short-term loans to related parties              
Green Future USA Inc. (i)   10,491    –   6%  From February 2026 to March 2026
VinFast OEM US Holding, Inc., (i)   –    2,439,111   From 13.26% to 13.58%  November 2026
VinFast India (i)   –    655,675   8%  February 2026
VinFast Germany (ii)   –    231,435   From 8% to 10%  September 2026
                 
                 
TOTAL   10,491    3,326,221       
                 
Long-term loans to related parties                
VinFast Philippines (i)   –    2,360,430   8%  September 2027
VinFast Germany (ii)   –    629,448   From 8% to 10%  From September 2027 to September 2028
                 
TOTAL   –    2,989,878       
                 
Short-term borrowings from related parties                
Vingroup JSC   28,808,902    –   From 5.7% to 12%  From January 2026 to December 2026
Vinpearl Australia Pty Ltd. (iii)   67,929    –   7%  May 2026
Vinfast Germany   –    44,585   7.5%  February 2026
                 
                 
TOTAL   28,876,831    44,585       
                 
Long-term borrowings from a related party                
Vingroup JSC   12,053,304    –   From 9.2175% to 12.5%  From January 2027 to March 2027
                 
                 
TOTAL   12,053,304    –       

 

(i)Amounts denominated in United States Dollar

 

(ii)Amounts denominated in Euro

 

(iii)Amounts denominated in Australian Dollar

 

- 128 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

29.TRANSACTIONS WITH RELATED PARTIES (CONT’D)

 

29.3Amounts due to and due from related parties (cont’d)

 

(a)Detail of loans to and borrowings from related parties: (cont’d)

 

 As at 31 December 2024:

 

   Group   Company       
Related parties  VND million   VND million   Interest rate per annum  Maturity date
               
Short-term borrowings from related parties              
Vingroup JSC   54,840,302    –   From 5.2% to 14.5%  From February 2025 to November 2025
Vinpearl Australia Pty Ltd. (iii)   40,788    –       
                 
TOTAL   54,881,090    –       
                 
Long-term borrowings from a related party                
Vingroup JSC   23,953,280    –   From 9.2% to 15%  From January 2026 to March 2027
                 
TOTAL   23,953,280    –       

 

(i)Amounts denominated in United States Dollar

 

(ii)Amounts denominated in Euro

 

(iii)Amounts denominated in Australian Dollar

 

- 129 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

29.TRANSACTIONS WITH RELATED PARTIES (CONT’D)

 

29.3Amounts due to and due from related parties (cont’d)

 

(b)Detail of other balance due from and due to related parties:

 

      Group   Company 
      2025   2024   2025   2024 
Related Parties  Transactions  VND million   VND million   VND million   VND million 
                    
As at 31 December                
                    
Short-term advance to and receivables from related parties            
                    
GSM JSC  Receivable from sale of vehicles   2,687,041    2,343,282    –    – 
GSM Indo JSC  Receivable from sale of vehicles   3,344,623    1,325,057    –    – 
V-Green JSC  Receivable from sharing of business cooperation contact, payment on behalf and others   231,569    371,046    –    – 
GSM Philippines  Receivable from sale of vehicles   1,807,370    –    –    – 
Green Future JSC  Receivable from disposal of assets   171,036    51,710    –    – 
VinFast OEM (i)  Interest receivables   –    –    1,152,096    793,553 
VinFast France (ii)  Interest receivables   –    –    33,872    176,010 
VinFast India (i)  Interest receivables   –    –    43,688    – 
VinFast Germany (i)  Interest receivables   –    –    9,666    – 
VinFast Philippines (i)  Interest receivables   –    –    4,003    – 
Others  Other short-term receivables   186,735    112,368    2,121    5,592 
                        
SUBTOTAL      8,428,374    4,203,463    1,245,446    975,155 
                        
Others  Advance to suppliers   53,024    68,658    –    – 
                        
TOTAL      8,481,398    4,272,121    1,245,446    975,155 

 

(i)Amounts denominated in United States Dollar

 

(ii)Amounts denominated in Euro

 

- 130 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

29.TRANSACTIONS WITH RELATED PARTIES (CONT’D)

 

29.3Amounts due to and due from related parties (cont’d)

 

(b)Detail of other balance due from and due to related parties (cont’d):

 

      Group   Company 
      2025   2024   2025   2024 
Related Parties  Transactions  VND million   VND million   VND million   VND million 
                    
As at 31 December
Short-term payables to related parties                
                    
VHIZ JSC  Payable relating to leaseback transaction and others   –    131,978    –    – 
Vingroup JSC  Interest payables and others   3,998,097    5,918,690    –    – 
VinFast Vietnam  Payables due to assignment of P-notes from Vingroup JSC and VIG   –    –    –    49,990,500 
VinSmart JSC  Payable for purchasing of raw materials and assets   153,641    237,371    –    – 
VinSmart Future JSC  Other payables   269,108    63,931    –    – 
Vinhomes JSC  Car vouchers which have not been redeemed   –    338,169    –    – 
   Other payables   65,378    74,311    –    – 
V-Green JSC  Payables   508,425    145,759    –    – 
VHIZ Hai Phong JSC  Payables for leaseback transaction and others   589,541    1,379,381    –    – 
VinBus Ecology LLC  Interest payables and others   3,340    300,525    –    – 
GSM JSC  Payables   82,420    140,864    –    – 
Others  Other payables   325,858    425,357    –    – 
                        
SUBTOTAL      5,995,808    9,156,336    –    49,990,500 
                        
Vinhomes JSC  Advance from customers   67,353    81,109    –    – 
Others  Advance from customers   2,783    8,446    –    – 
                        
TOTAL      6,065,944    9,245,891    –    49,990,500 

 

- 131 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

29.TRANSACTIONS WITH RELATED PARTIES (CONT’D)

 

29.3Amounts due to and due from related parties (cont’d)

 

(b)Detail of other balance due from and due to related parties (cont’d):

 

      Group   Company 
      2025   2024   2025   2024 
Related Parties  Transactions  VND million   VND million   VND million   VND million 
                    
As at 31 December                
                    
Long-term payables to related parties                
                    
VHIZ Hai Phong JSC  Payables relating to leaseback transaction and others   17,655,156    16,360,114    –    – 
Vingroup JSC  Interest payables   3,025    217,809    –    – 
VinFast Vietnam  Payables due to assignment of P-notes from Vingroup JSC and VIG   –    –    10,104,465    – 
                        
TOTAL      17,658,181    16,577,923    10,104,465    – 
                        
Long-term receivables from related parties                    
                        
Others  Deposit received and other receivables   54,843    3,630    –    – 
                        
TOTAL      54,843    3,630    –    – 

 

29.4Other related party transactions

 

Compensation of key management personnel of the Group and Company are as follows:

 

   Group   Company 
   2025   2024   2025   2024 
   VND million   VND million   VND million   VND million 
                 
Salaries and other short-term employee benefits   32,172    25,342    18,899    20,189 
Share-based payments   62,135    57,187    82,648    57,187 
                     
    94,307    82,529    101,547    77,376 
                     
Comprise amounts paid to:                    
Directors of the Company   94,307    82,529    101,547    77,376 
Other key management personnel   –    –    –    – 
                     
    94,307    82,529    101,547    77,376 

 

- 132 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

30.SUPPLIER FINANCE PROGRAM

 

The Group entered into supplier finance arrangements with its third-party suppliers to provide logistic services/material and third-party banks. As a result of these arrangements, the suppliers:

 

-Transfers the credit risk;

 

-Can obtain payment at an earlier date than original terms; and

 

-May receive more favourable terms based on the Group’s credit worthiness than if the suppliers had factored the receivables directly with the bank.

 

Participation in the arrangement is at the suppliers’ own discretion. Terms of the original contracts between the Group and the supplier do not change as a result of these transactions and there is no agreement with the debtor to extend payment terms.

 

The following table summarises the carrying amount of liabilities that are part of supplier finance arrangements as of 31 December 2025 and 2024:

 

   Group 
   2025   2024 
   VND million   VND million 
Presented as trade payables        
Opening balance   240,318    – 
Added during the year   1,850,518    240,318 
Settled during the year   (1,232,228)   – 
Ending balance   858,608    240,318 
In which:           
Suppliers have subsequently received payment   436,914    64,230 

 

The following table summarises the range of payment due dates and the interest charged as of 31 December 2025 and 2024:

 

   Group 
   2025   2024 
         
Liabilities that are part of the arrangement   Less than 180 days    Less than 180 days 
Interest charged under the arrangement   From 9.64% to 12.97%   9.94%

 

- 133 -

 

VinFast Auto Ltd. and its subsidiaries

 

Notes to the financial statements (cont’d)

For the financial year ended 31 December 2025

 

31.EVENTS AFTER THE REPORTING DATE

 

Free charging program

 

On 9 February 2026, a subsidiary of the Group announced free charging program for electric cars and e-scooters. Under the program, customers buying the Group’s electric car are eligible for a certain number of free charging per month at charging stations operated by V-Green JSC for a period of up to three years, ending on 10 February 2029. Additional costs (if any) from this program will be funded by Mr. Pham. Customers buying the Group’s e-scooters are eligible for a certain number of free battery swaps per month through 30 June 2028.

 

Restructuring plans

 

On 12 May 2026, the Company announced plans to split certain assets of VinFast Trading and Production JSC, a subsidiary of the Company, into a newly formed entity expected to be named VinFast Vietnam Joint Stock Company (“VFVN”) (the “Split”). Following the Split, the Company will hold approximately 99.9% of the voting rights in each of VFVN and VinFast Trading and Production JSC. VinFast Trading and Production JSC will hold assets associated with the manufacturing business in Vietnam, shares in VinEG Green Energy Solutions JSC, and the investment under the Agreement with SGC. It will also continue to assume all financial indebtedness owed by VFTP to unrelated third-party creditors, subject to the relevant creditors’ approval. VFVN will be established as a new direct subsidiary of the Company to hold assets, operations, and business undertakings related to (i) VinFast’s global research and development activities, intellectual property, after-sales operations and related functions, and sales businesses, and (ii) shares in certain other subsidiaries.

 

Following the Split, the Company intends to transfer all of its interest in VinFast Trading and Production JSC to the Purchasers, led by Future Investment Research and Development Joint Stock Company and including Mr. Pham Nhat Vuong, the Company’s CEO, for an aggregate consideration of approximately VND13,309.6 billion. Subsequently, VFVN and VinFast Trading and Production JSC will enter into a manufacturing and supply agreement, under which VinFast Trading and Production JSC will produce VinFast-branded vehicles in Vietnam in accordance with the designs, technical specifications, and standards provided by VFVN.

 

The restructuring plans are subject to approval by Shareholders of the Company.

 

No adjustments were made to the financial statements in respect of the above matters.

 

There are no other matters or circumstances that have arisen since the consolidated balance sheet date that requires disclosure in consolidated financial statements of the Group.

 

32.AUTHORISATION OF FINANCIAL STATEMENTS FOR ISSUE

 

The financial statements for the year ended 31 December 2025 were authorised for issue in accordance with a resolution of the directors on 22 May 2026.

 

- 134 -

Source: View Original Filing on SEC EDGAR

FAQ

What is VinFast (VFS) asking shareholders to approve at the 2026 AGM?

Shareholders will vote on director emoluments up to US$500,000 for 2027, re-appointing Ernst & Young entities as auditors, adopting 2025 SFRS financial statements, re-electing director Pham Nhat Quan Anh, and granting a broad mandate to issue shares and equity-based instruments until the next annual meeting.

How did VinFast (VFS) perform financially in 2025 under SFRS?

VinFast reported 2025 revenue from contracts with customers of VND 88,612,101 million and a net loss of VND 120,055,683 million. Gross loss was VND 43,785,014 million, reflecting high cost of sales and operating expenses as the company scales manufacturing and international operations.

What did the auditors say about VinFast’s ability to continue as a going concern?

Ernst & Young LLP highlighted a material uncertainty related to going concern. They noted the large 2025 net loss, significant working capital deficit, and reliance on future funding, which together cast significant doubt on VinFast’s ability to continue operating without successfully executing its financing and business plans.

What is VinFast’s liquidity position and cash flow situation at year-end 2025?

As of December 31, 2025, VinFast held cash and cash equivalents of VND 7,351,998 million and recorded negative operating cash flows of VND 19,181,890 million. Current liabilities exceeded current assets by VND 75,859 billion, underscoring reliance on external capital and support from owners.

How much did VinFast’s shareholders lose per share in 2025?

Basic and diluted loss per share attributable to ordinary shareholders was VND 51,240 in 2025, compared with VND 31,309 in 2024. The weighted average number of shares used in this computation was 2,339,145,514, reflecting substantial losses spread over a large share base.

What capital-raising authority is VinFast seeking at the AGM?

VinFast seeks shareholder approval for a general mandate allowing directors to issue shares, warrants, convertible securities, and equity awards. This authority would run until the next AGM or the legal deadline for holding it, enabling potential future equity financings without separate approvals for each issuance.

Who will audit VinFast’s 2026 financial year if shareholders approve the proposal?

If approved, Ernst & Young LLP (Singapore) and Ernst & Young Vietnam Limited will be re-appointed as auditors for the financial year ending December 31, 2026. Directors would also be authorized to fix each auditor’s remuneration for services rendered through the period covered by the engagement.

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