VinFast: Vietnamese EV-maker valued at $85bn, topping Ford, GM

On the opening of its trade at NYSE, shares of the business surged 270 percent to close at $37.
Jijo Malayil
VinFast's range of cars
VinFast's range of cars


Reflecting the expanding worldwide interest in and demand for electric automobiles, Vinfast, a relatively new all-electric automaker from Vietnam, has managed to skyrocket its valuation above established firms at $85 billion. In comparison, the market capitalization of firms like Ford and General Motors stand at $48 billion and $46 billion, respectively. 

The company's shares finished above $37 in their New York debut on August 14. On their first day of trading, shares of the business surged 270 percent on the Nasdaq. They debuted at $22, more than double their initial $10 price. 

The company was formed in 2017 and has focused on developing affordable all-electric vehicles. VinFast produces and exports an array of electric SUVs, e-scooters, and e-buses throughout Vietnam, the United States, and, shortly, Europe.

"VinFast has accelerated the global electric vehicle (“EV”) revolution by making smart, safe, and environmentally friendly EVs accessible to everyone. Today’s successful listing not only supports VinFast’s commitment to sustainable mobility at a global scale but also unlocks access to the capital markets and important avenues for future development," said Madame Thuy Le, Global CEO of VinFast Auto Ltd, in a media statement.

An unrealistic picture

There's a catch to the story. According to regulatory documents, the company's chairman and founder Pham Nhat Vuong owns 99 percent of the company's outstanding shares, primarily through Vingroup JSC, Vietnam's largest conglomerate.

Due to it, the number of shares available for trading was limited, which could have caused considerable price variation on opening day trade. The total transaction value of its shares traded on August 14 was roughly $185 million. 

The widening interest of investors in the EV market worldwide has helped the Vietnamese firm's cause. The valuation also positively reacts to VinFast's vision of constructing a sustainable future through electric transportation.

A mixed reaction

VinFast began work on a new facility in North Carolina in July, which it believes will serve as a hub for US sales. According to the firm, the facility may potentially handle 150,000 automobiles yearly, and the total investment would exceed $2 billion.

The company is, however, struggling to meet its sales target of 50,000 cars globally. In the first half of 2023, VinFast only delivered 11,300 EVs. The automaker could only sell 128 vehicles in the US after five months of sale. The company just sold 7,400 cars in the previous year. In comparison, Tesla delivered almost 889,000 automobiles within the same period.

Coming to the firm's balance sheet, the firm recorded a $2.1 billion loss in 2022. As of the end of the first quarter, it had lost $598 million, up from $411 million in the same period last year.

According to the firm, it is working to strengthen its position in the global EV market by leveraging new partnerships with distributors and dealers in select markets, including North America, Europe, Vietnam, and Southeast Asia. 

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