Electrification And Mobility Ecosystem Expansion Will Drive Major Long Term Upside Potential

Catalysts

About VinFast Auto

VinFast Auto is a fast scaling Vietnamese electric vehicle manufacturer building a global, multi segment mobility ecosystem across passenger cars, commercial fleets and two wheelers.

What are the underlying business or industry changes driving this perspective?

• Rapid electrification of two wheelers in Vietnam, supported by policies restricting gasoline motorbikes in major city centers from mid 2026, underpins VinFast target of 1.5 million e scooter deliveries in 2026 and materially expands group revenue and cash generation.
• Accelerated EV adoption in key emerging markets such as India, Indonesia and the Philippines, where VinFast is ramping localized production, dealer networks and financing partnerships, positions the company to capture outsized unit growth and lift consolidated revenue.
• Deployment of the new common vehicle platform and zonal EE architecture, covering an expected 70% to 80% of Asia volumes in 2026, should significantly lower bill of materials and labor costs per unit and drive structural improvement in gross margin.
• Expansion of the integrated green mobility ecosystem, including the Green series fleet business, GSM ride hailing and V Green charging and battery swap networks, increases utilization per vehicle, raises recurring service income and supports higher long term earnings quality.
• Ongoing battery cost deflation of roughly low double digits year over year and the transition to more efficient battery generations are expected to reduce pack costs per kilowatt hour and narrow net losses by improving vehicle level contribution margins.

Assumptions

This narrative explores a more optimistic perspective on VinFast Auto compared to the consensus, based on a Fair Value that aligns with the bullish cohort of analysts. How have these above catalysts been quantified?

• The bullish analysts are assuming VinFast Auto's revenue will grow by 41.0% annually over the next 3 years.
• The bullish analysts are not forecasting that VinFast Auto will become profitable in next 3 years. To represent the Analyst Price Target as a Future PE Valuation we will estimate VinFast Auto's profit margin will increase from -137.0% to the average US Auto industry of 4.9% in 3 years.
• If VinFast Auto's profit margin were to converge on the industry average, you could expect earnings to reach ₫9301.1 billion (and earnings per share of ₫3972.07) by about December 2028, up from ₫-92516.3 billion today.
• In order for the above numbers to justify the price target of the more bullish analyst cohort, the company would need to trade at a PE ratio of 89.6x on those 2028 earnings, up from -2.3x today. This future PE is greater than the current PE for the US Auto industry at 19.0x.
• The bullish analysts expect the number of shares outstanding to remain consistent over the next 3 years.
• To value all of this in today's terms, we will use a discount rate of 19.42%, as per the Simply Wall St company report.

Risks

What could happen that would invalidate this narrative?

• Persistent negative unit economics and deeply negative gross margins, even after the planned platform refresh and battery cost reductions, could signal that scale and efficiency improvements are insufficient to offset high production, warranty and SG&A costs. This would limit the path to sustainable earnings and free cash flow and put prolonged pressure on net margins and overall profitability.
• Heavy dependence on Vietnam as the core profit and volume engine, with 70% to 80% of deliveries still expected to come from the domestic market in the medium term, creates concentration risk if policy support softens, competitive intensity rises or local demand normalizes. This would constrain revenue growth and delay the inflection of operating leverage and earnings.
• Capital intensity and continued high cash burn from global factory build out, ecosystem investments and elevated R&D, against a liquidity runway the company itself frames at roughly 18 months, raise the risk of future dilutive funding or constrained investment capacity. This would pressure per share earnings and return on capital and could slow revenue expansion.
• Execution risk around international expansion, including ramping CKD plants, building dealer networks and supporting aftersales in diverse regulatory and demand environments such as India, Indonesia, the U.S. and Europe, could result in slower than expected overseas volume ramp and continued reliance on lower margin markets. This would weigh on consolidated revenue mix and delay improvement in net margins.
• Strategic complexity from simultaneously scaling multiple brands, segments and geographies, while pursuing autonomy, robotaxis and a broad mobility ecosystem, increases the risk of operational missteps, product or quality issues and suboptimal capital allocation. Any of these outcomes could lead to higher warranty and support costs, weaker pricing power and ultimately lower earnings and cash generation over the long term.

Valuation

How have all the factors above been brought together to estimate a fair value?

• The assumed bullish price target for VinFast Auto is $7.95, which represents up to two standard deviations above the consensus price target of $6.36. This valuation is based on what can be assumed as the expectations of VinFast Auto's future earnings growth, profit margins and other risk factors from analysts on the bullish end of the spectrum.
  
• However, there is a degree of disagreement amongst analysts, with the most bullish reporting a price target of $7.95, and the most bearish reporting a price target of just $5.5.
  
• In order for you to agree with the more bullish analyst cohort, you'd need to believe that by 2028, revenues will be ₫189419.4 billion, earnings will come to ₫9301.1 billion, and it would be trading on a PE ratio of 89.6x, assuming you use a discount rate of 19.4%.
  
• Given the current share price of $3.47, the analyst price target of $7.95 is 56.4% higher.
  
• We always encourage you to reach your own conclusions though. So sense check these analyst numbers against your own assumptions and expectations based on your understanding of the business and what you believe is probable.