Giai Phong Auto has faced significant financial challenges, reporting a net loss of 14,6 billion VND in the first 9 months of this year. This latest figure continues a difficult trend for the company, marking its 15th consecutive year of unprofitability. The automotive manufacturer's financial performance shows a sharp decline, with revenue plunging by 98% compared to the same period last year.

According to its third quarter financial report, Giai Phong Auto recorded just 1,4 billion VND in revenue during the first 9 months of this year. All sales originated from its core operations. Earlier in the year, the company's revenue for the first half was only 400 million VND, indicating ongoing struggles in sales generation.

The company's operational difficulties are evident in its gross profit, which registered a negative 3,7 billion VND. This represents a substantial increase in losses from the 633 million VND recorded in the previous year. Selling products below cost has directly contributed to these operating losses. While the financial segment provided some relief, generating 861 million VND, it was insufficient to offset the substantial fixed costs, including financial, sales, and administrative expenses, which amounted to billions of dong.

The 14,6 billion VND net loss for the first 9 months of this year is higher than the 10,8 billion VND loss reported for the same period last year. This extends the company's long history of financial struggles, following 14 consecutive years of losses prior to this period.

In 2025, Giai Phong Auto generated approximately 115 billion VND in revenue. Despite this, the company still incurred a net loss of nearly 15 billion VND. Management explained that the negative profit was due to selling 2022 inventory at prices below cost, coupled with persistently high financial expenses.

Giai Phong Auto was originally established in 2001 as Ha Giang Electromechanical Joint Stock Company. The company adopted its current name in 2008, shifting its primary focus to manufacturing and trading trucks, specifically those under 25 tons. It operates a vehicle assembly plant located in Thanh Thuy commune, Tuyen Quang province.

This year, Giai Phong Auto issued 20 million private shares, raising 200 billion VND. However, the company has redirected these funds. Instead of investing in electric vehicle assembly as initially planned, it has partnered with Thanh Tin Business Development and Urban Joint Stock Company, a real estate firm, for investment collaboration.

Trong Hieu