Vietnam’s VinFast targets US electric car market

After launching its electrical autos in Vietnam, VinFast is now eyeing the US market (Nhac NGUYEN)

Vietnamese electrical car maker VinFast has made its debut on the Nasdaq, and its shares soared to push its inventory market valuation previous Ford and Normal Motors on its opening day of buying and selling.

Here is what we learn about VinFast and its push to make it within the crowded EV market:

What’s VinFast?

VinFast is Vietnam’s first homegrown automotive producer. It has launched two electrical car fashions in North America, turning into the first-ever Vietnamese automotive bought within the US market.

It hopes to compete with giants akin to Tesla and it started constructing a manufacturing facility within the US state of North Carolina final month.

The carmaker is a subsidiary of Vietnam’s largest personal conglomerate, Vingroup, which is owned by the nation’s richest man, Pham Nhat Vuong.

Vuong began out promoting dried noodles within the former Soviet Union earlier than amassing a $5 billion fortune from enterprises in a variety of sectors together with actual property, tourism and schooling.

As soon as his focus shifted to vehicles with the launch of VinFast in 2017, he reworked a muddy patch of swampland close to northern Vietnam’s port metropolis of Haiphong right into a state-of-the-art manufacturing facility inside two years.

The manufacturing facility was kitted out with 1,200 robots, German, Japanese and Swedish equipment, and a world group from auto giants together with BMW and Normal Motors.

Nevertheless, in 2022 VinFast posted a loss of $2.1 billion.

What occurred on its Nasdaq debut?

Shares of VinFast — buying and selling beneath the ticker “VFS” — entered the market Tuesday at $22 and rose sharply, closing at greater than $37. That gave it a market worth of round $85 billion after the day’s commerce, a lot increased than Ford’s $48 billion valuation and Normal Motor’s $46 billion.

Vuong’s wealth jumped by $39 billion, in line with Bloomberg.

He owns about 99 p.c of the corporate’s shares, which means solely a small quantity are being actively traded which makes them vulnerable to huge worth swings.

As a technique to get the corporate listed in the US, VinFast accomplished a merger with on line casino mogul Lawrence Ho’s Black Spade Acquisition.

Black Spade is a “clean cheque” firm, or a particular goal acquisition firm (SPAC) launched to public markets with the only goal of merging with an working firm.

Some corporations utilizing SPACs — together with different EV startups — have suffered huge market drops.

What subsequent for VinFast?

VinFast launched its electrical autos final 12 months throughout Vietnam, the place they’re slowly gaining in reputation. It additionally launched a taxi service in main cities in April utilizing the EVs.

In North America, greater than 10,000 orders for 2 fashions — the VF8 and the VF9 — had been positioned by clients, VinFast informed AFP Wednesday.

However solely 350 vehicles — all of them VF8s — are presently on the highway.

VinFast hopes the manufacturing facility in North Carolina will start manufacturing in 2025, and has additionally opened showrooms in Canada and Europe.

bur-aph/lpm/mtp

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