(Hanoi) The American dream of the Vietnamese manufacturer of electric vehicles VinFast has just started with a bang with an entry on the hats of wheels on the NASDAQ.
VinFast, the first car manufacturer created in Vietnam, hopes to find a place in the United States by offering models cheaper than its famous rival Tesla and a monthly battery rental system, supposed to lower the bill for the customer.
The manufacturer has laid the foundations of a car and battery factory in North Carolina, from which 150,000 vehicles per year should come out from 2025. Its cost: $2 billion.
On Tuesday, after its first day of trading, the valuation of VinFast exceeded those of the American giants Ford or General Motors.
Launched at $22, the stock closed at more than $37, valuing the company at some $85 billion, compared to $48 billion for Ford and $46 billion for GM.
To list in the United States, VinFast merged with a SPAC (Special Purpose Acquisition Company), the Black Spade Acquisition of Hong Kong casino magnate Lawrence Ho.
Other EV startups introduced to the US stock market through a SPAC, such as Americans Nikola and Lucid, saw their valuations plummet afterwards.
And the title is likely to vary greatly since only a very small part of the capital is on the market. VinFast is some 99% owned by its chairman, billionaire Pham Nhat Vuong.
Vietnam’s richest man with his Vingroup conglomerate had started his business selling instant noodles in the former USSR. He launched VinFast in 2017, building a state-of-the-art factory in Haiphong from scratch in two years. Still, in 2022 VinFast posted a loss of $2.1 billion.
“Today’s successful listing supports VinFast’s commitment to sustainable mobility globally and also opens access to capital markets,” VinFast CEO Thuy Le said in a statement.
VinFast launched its electric vehicles across Vietnam last year, as well as an electric taxi service in major cities in April.
In North America, more than 10,000 private orders have already been registered for two models, VF8 and VF9, VinFast told AFP on Wednesday. But only 350 cars, all VF8s, are currently on the road.
VinFast has also opened showrooms in Canada as well as in Europe, in Paris and Cologne.