Yesterday, Vietnam-based electric vehicle (EV) start-up VinFast Auto (NASDAQ:VFS) announced that it would expand into the Philippines. Heading into today’s trading, VFS stock had fallen more than 25% so far this year.
VinFast will begin its foray into the country by launching “a network of electric car and motorcycle dealerships.” The electric vehicle maker intends to begin investing in the Philippines starting this year. Pham Nhat Vuong, chairman of VinFast parent company Vingroup, recently discussed the company’s plans with President Ferdinand Marcos Jr. of the Philippines as well as other leaders.
VFS Stock: An Entrance Into the Philippines
VinFast is “targeting a presence in at least 50 countries this year.” The firm has designated Southeast Asia — which is home to both Vietnam and the Philippines — as its “key markets region.”
In 2023, VinFast delivered nearly 35,000 EVs. However, that came in significantly below the company’s target of at least 40,000 deliveries. Still, on a positive note, the EV maker’s deliveries jumped 35% in the fourth quarter from Q3, amounting to 13,513 cars delivered.
Among the reasons cited by VinFast for its lower-than-expected sales in 2023 were “slow EV adoption in some regions, tough competition, and a choppy macroeconomic backdrop,” per Seeking Alpha.
Looking beyond the Philippines, VinFast also has multiple showrooms in California. The company plans to build a factory in North Carolina as well as a plant in India.
Despite recent declines for VFS stock, shares have a high trailing price-to-sales ratio of 15.5 times.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
