VinFast

VinFast is a Vietnamese automotive company, the first independent automaker in Vietnam. The company was founded in 2017, its head office is located in Hanoi, the plant is located in Haiphong.

2023

Capitalization - $160 billion. This is the third indicator among automakers

At the end of August 2023, the unprofitable Vietnamese electric car manufacturer VinFast rose to third place in the ranking of the most expensive auto companies in the world.

According to Reuters, after entering the Nasdaq exchange through the SPAC merger, VinFast is rapidly increasing its capitalization. As of mid-August 2023, the company's value was estimated at $85 billion, and by the end of this month it had reached $160 billion. According to this indicator, VinFast bypassed Mercedes, Volkswagen, Ford, General Motors and BMW. In first place in the list of the most expensive car companies is Tesla with a capitalization of about $740 billion, and in second place is Toyota with a result of more than $250 billion.

VinFast climbed to third place in the ranking of the most expensive auto companies in the world

VinFast is part of the largest Vietnamese conglomerate Vingroup, owned by billionaire Pham Nhat Vuong. VinFast expects to sell up to 50,000 electric vehicles by the end of 2023. For comparison: Tesla plans to sell up to 1.8 million cars. VinFast is also entering the U.S. and European markets at a time when demand growth for electric vehicles is slowing and Tesla is waging a price war to counter numerous competitors.

VinFast leads Vietnam in passenger electric vehicle market share by 2023, according to BNI Research statistics. In 2025, the company intends to open its first plant in the United States - it will be located in North Carolina. After the launch of this enterprise, VinFast's production capacity for the production of electric vehicles will increase by about one and a half times. At the same time, according to S&P Global Mobility, in June 2023, only 137 VinFast electric vehicles were registered in the United States. Market participants say the Vietnamese company has a long way to go before it can truly compete with Tesla and other major automakers, which are spending billions of dollars to grab a share of the electric vehicle segment.^[1]

Going public with an estimate of $85 billion

On August 15, 2023, the Vietnamese automotive corporation VinFast entered the American stock exchange Nasdaq, becoming a global public company with a market capitalization of more than $85 billion.

The offering came on the heels of the successful completion of a deal to merge VinFast with Black Spade Acquisition on August 14, 2023. Initially, it was assumed that at the time of entering the stock exchange, the value of VinFast securities would be $10, but trading opened from $22. This means that the market capitalization of the car manufacturer was estimated at $23 billion.

VinFast entered the US stock exchange

During the trading, the price of shares continued to grow and at the end of the session amounted to $37.06. Thus, the capitalization of VinFast reached approximately $85 billion. For comparison: Ford has this figure by mid-August 2023 is approximately $48 billion, General Motors - $46 billion.

VinFast's stock trading volume was about $185 million, according to Refinitiv. The founder of Pham Nhat Vuong, the richest man in Vietnam, is the beneficial owner of 99% of VinFast's 2.3 billion ordinary shares (including through affiliates).

We have a number of strategic and institutional investors. We intend to work out a certain way to raise capital over the next 18 months, "said VinFast CFO David Mansfield in an interview with Reuters.

VinFast plans to become a direct competitor to Tesla. The Vietnamese company is building a plant worth approximately $4 billion and is switching to a hybrid sales model with the involvement of dealers. VinFast also expects to enter into partnership agreements in overseas markets. At the same time, the company will continue to demonstrate cars in its own exhibition halls.^[2]

Recall of the entire batch of crossovers due to defective software

On May 25, 2023, the Vietnamese automotive company VinFast announced the recall of the entire first batch of electric VF8 crossovers intended for the American market. The problem is related to on-board software. Read more here.

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