VinFast, a Vietnamese electric vehicle (EV) maker, recently made headlines with its initial public offering (IPO) on the Nasdaq stock exchange.
- IPO Date: New York – Ha Noi, August 15, 2023 – VinFast Auto Ltd.
- Valuation at IPO: The estimated valuation of VinFast at the time of its IPO was between $25 billion and $60 billion
- Nasdaq Debut: On the day of its Nasdaq debut, VinFast’s shares opened at $22 and closed at $37.06, representing a gain of over 68%.
- Share Surge: VinFast’s shares soared in thin trading on their Nasdaq debut, with a 270% increase compared to the IPO price.
- Market Value: Following its Nasdaq debut, VinFast’s market value exceeded that of Ford and General Motors (GM).
- Listing Exchange: VinFast’s shares are listed on the Nasdaq stock exchange.
- Ticker Symbol: VinFast trades under the ticker symbol ‘VFS‘.
- Lead Banks: Citigroup, Morgan Stanley, Credit Suisse, and JP Morgan led the deal as part of a nine-bank syndicate
VinFast is a Vietnamese-founded private automotive company that is a member of the conglomerate organization Vingroup, one of the largest private conglomerates in Vietnam that was founded by Phạm Nhật Vượng. It is the first Vietnamese car brand to expand into global markets as well as the first to expand into producing electric vehicles (EV) such as electric cars and electric scooters. The company was established in 2017 and has a state-of-the-art automotive manufacturing complex with up to 90% automation in Hai Phong, Vietnam. VinFast has ambitious plans to retire production of gas-powered vehicles and transition fully to EVs by late 2022. The company has also announced plans to build new EV plants in Germany and the United States.
VinFast’s EVs are equipped with human-centered tech that seamlessly improves the driving experience by focusing on the driver. The company’s design language blends sporty curves, luxurious strokes, and formidable presence, all while optimizing performance, functionality, and elegant simplicity. VinFast’s EVs are built with premium craftsmanship and high-quality parts designed for safety, reliability, and comfort on every journey. The company offers a 10-year/125,000-mile warranty and 90% EV charging station coverage. VinFast has been recognized for its achievements, including being awarded “A Star is Born” by AUTOBEST at the 2018 Paris Motor Show for its Lux models.
VinFast has recently gained attention in the US market. The company’s debut on the Nasdaq has been successful, with a market value of $85 billion, surpassing the market value of established automakers like Ford and General Motors. To compete in the US market, VinFast is building a factory in North Carolina, spanning 1,800 acres. This indicates the company’s commitment to establishing a presence in the US and catering to the local market. VinFast integrates suppliers into VinGroup, which includes investing in or buying shares of them. This strategy gives the company more control over its supply chain and potentially reduces the bargaining power of suppliers.
VinFast has also established cooperation with established automakers like GM and BMW, which can provide valuable expertise and support in manufacturing EVs. As a relatively new player in the market, VinFast faces the challenge of building brand recognition worldwide. However, the company benefits from being a part of VinGroup, which provides strong finances and research and development (R&D) support from other subsidiary companies. VinFast’s strengths include strong financial backing, R&D support, experience in manufacturing EVs abroad, a strong brand identity, and integration of important suppliers.
Despite its strengths, VinFast needs to overcome challenges such as building brand recognition globally and adapting to the US market, where competition is fierce. However, the results of a strategic analysis of VinFast on the US electronic vehicles market have shown that the potential penetration of VinFast will be successful.
In conclusion, VinFast’s competitiveness in the US market seems promising. The company’s high market value, expansion plans, supplier integration strategy, and partnerships with established automakers indicate its potential for success. However, it will need to overcome challenges and adapt to the US market to fully capitalize on its strengths and gain a competitive edge
Three Silver 