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PROPERTY, PLANT AND EQUIPMENT, NET

12 Months Ended

Dec. 31, 2024

PROPERTY, PLANT AND EQUIPMENT, NET

PROPERTY, PLANT AND EQUIPMENT, NET

10.PROPERTY, PLANT AND EQUIPMENT, NET


		As of December 31,
		2023		2024		2024
		VND million		VND million		USD
Freehold land		1,952,618		2,048,104		84,162,893
Buildings and structures		23,466,382		26,303,728		1,080,901,089
Machinery and equipment		63,421,857		70,764,858		2,907,945,675
Leased-out batteries		4,242,908		5,895,670		242,271,214
Vehicles		2,328,694		2,537,029		104,254,325
Office equipment		909,400		829,408		34,082,926
Others		100,318		75,847		3,116,787
Subtotal		96,422,177		108,454,644		4,456,734,909
Less: Accumulated depreciation		(15,222,216)		(23,914,727)		(982,729,690)
Less: Impairment charges		(2,077,258)		(5,840,402)		(240,000,082)
Total property, plant and equipment, net		79,122,703		78,699,515		3,234,005,137

The Group recorded depreciation expenses of VND9,493.6 billion (USD390.1 million), VND6,507.9 billion and VND4,044.6 billion for the years ended December 31, 2024, 2023 and 2022 respectively.

As of December 31, 2024, a portion of property, plant and equipment was mortgaged with banks to secure the Group’s loans and debts (Note 13.2).

During the year, the amount of interest cost that has been capitalized is VND409.4 billion (USD16.8 million) (2023: VND669.4 billion, 2022: VND357 billion).

In 2024, the Group identified specific impairment indicators associated with individual assets, which include:

●

Impairment of leased-out batteries of VND907,2 billion (USD37.3 million) under the Car and E-scooter segments was recognized during the year (2023: VND1,023.6 billion, 2022: VND1,053.6 billion) due to competitive lease subscription fee provided to customers. The Group impaired identified asset based on its fair value.

●

Impairment of battery production line facilities under the Car segment was recognized during the year of VND2,665.3 billion (USD109.5 million) due to idle operations. The Group impaired identified asset based on its fair value.

●

Impairment of showroom assets under the Car segment was recognized during the year of VND190.7 billion (USD7.8 million) due to the change in plan of these showrooms. The Group impaired identified asset based on its disposal cashflows.

The impairment losses were recognised in the administrative expenses. The following methods and significant unobservable inputs were used for the estimation of fair value measurements categorized within Level 3 of the fair value hierarchy:


Item		Valuation technique		Valuation date		Significant unobservable inputs		Amount
Fair value of leased-out batteries		Discounted Cash Flow		December 31, 2024		Discounted rate		8.67 – 10.22 (%/annum)
Fair value of battery production line facilities		Replacement Cost		December 31, 2024		Economic obsolescence		29.4%