Vietnam's VinFast Targets to Make It Big in US Electric Vehicle Market

VinFast, Vietnam's electric vehicle manufacturer, has made a striking debut on the Nasdaq stock exchange, with its shares experiencing a significant surge that propelled its market valuation ahead of both Ford and General Motors on the day of its market entry.

Vietnam's Automaker VinFast

Originating from Vietnam, AFP reported that VinFast is the nation's pioneering automaker, breaking ground by introducing two distinct electric vehicle models in North America. Notably, this marks the first instance of a Vietnamese car making its way into the US market.

Challenging established industry giants like Tesla, VinFast has set in motion the construction of a manufacturing facility in North Carolina. The company operates under Vingroup, Vietnam's foremost private conglomerate, helmed by Pham Nhat Vuong, the country's wealthiest individual.

From humble beginnings of peddling dried noodles in the former Soviet Union, Vuong's entrepreneurial acumen has transformed his $5 billion fortune through ventures spanning various sectors, including real estate, tourism, and education.

Shifting the focus to automobiles with VinFast's inception in 2017, Vuong oversaw the metamorphosis of a muddy swampland near Haiphong, a port city in northern Vietnam, into a cutting-edge factory within two years.

Equipped with 1,200 robots and machinery sourced from Germany, Japan, and Sweden, the factory drew on a global team hailing from automotive giants such as BMW and General Motors.

VinFast's Nasdaq debut witnessed an extraordinary trajectory. Trading under the symbol "VFS," its shares entered the market at $22 and experienced a robust surge, ultimately closing at over $37.

This surge catapulted VinFast's market valuation to approximately $85 billion, surpassing the $48 billion valuation of Ford and the $46 billion valuation of General Motors.

As a result of this unprecedented surge, Pham Nhat Vuong's wealth expanded by $39 billion, according to Bloomberg. With Vuong retaining ownership of approximately 99 percent of the company's shares, the limited active trading of the remaining shares renders them susceptible to substantial price fluctuations, AFP reported.

VinFast's Future

VinFast's footprint extends beyond its market debut. The company introduced its electric vehicles to the Vietnamese market last year, gaining steady traction. The launch of an EV-based taxi service in major cities further amplified its presence.

In North America, the demand for VinFast's models VF8 and VF9 manifested in more than 10,000 customer orders. However, AFP reported that the current on-road count stands at a modest 350 VF8s.

VinFast's future endeavors are poised for remarkable growth. Anticipating the commencement of production at its North Carolina facility in 2025, the company's strategic vision extends to international audiences, as underscored by the establishment of showrooms in Canada and Europe.

As VinFast navigates the intricate terrain of the EV landscape and endeavors to etch its identity on the global stage, its strategies, actions, and market performance will shed light on its capacity to rival established industry giants and achieve lasting prominence.