Market cap of Vietnam EV maker VinFast hits $85 bln in Nasdaq debut

The market capitalization of Vietnamese electric vehicle (EV) producer VinFast reached $85 billion in its Nasdaq debut Tuesday with nearly 6.8 million shares changing hands.

VinFast’s shares on Nasdaq Global Select Market go under the ticker symbol “VFS”. It became the second Vietnamese company listed on Nasdaq.

The stock opened at $22 per share and closed at $37.06, valuing the EV startup, which has not recorded a profit, at $85 billion, more than General Motors' market capitalization at $46 billion and Ford's $48 billion.

VinFast’s public listing follows the completion of the business combination with Black Spade Acquisition, a SPAC, on Monday, U.S. time. The business combination values VinFast at approximately $23 billion, according to a June filing with the U.S. Securities and Exchange Commission, or SEC.

The combined company will now operate as VinFast Auto Ltd. and continue to be led by global CEO Le Thi Thu Thuy. Black Spade will provide ongoing business advisory input for the growth of the brand and assist with direct investor engagement, according to VinFast.

SPACs are shell companies that raise capital in an initial public offering (IPO) and use the cash to merge with a private company in order to take it public, usually within two years.

Commenting on VinFast’s U.S. listing, Thuy said, “Today’s milestone supports our commitment to sustainable mobility at a global scale while unlocking access to the capital markets and important avenues for future development.”

She added, “It is our hope that VinFast’s listing will inspire and unleash greater opportunities for Vietnamese brands to participate in the global market.”

VinFast has delivered almost 19,000 EVs including the VF e34, VF 5, VF 8, and VF 9 models as of June 30, 2023. It is also preparing for the upcoming launch of the VF 3, VF 6, and VF 7 models in the Vietnamese and global markets. VinFast looks forward to building upon its rapid expansion as the company rolls out next-generation EVs and solutions, and carries out its strategy of expanding its footprint globally.

The company has established a strong foothold in its Vietnamese home market by rolling out its own charging network spanning across 63 cities and provinces, and plans to expand it further in the coming years. VinFast has also established a company-owned retail and service network of over 122 VinFast stores worldwide.

The firm, part of Vietnamese private conglomerate Vingroup JSC, is working to strengthen its position in the global EV market by leveraging new partnerships with distributors and dealers in select markets, including North America, Europe, Vietnam, and Southeast Asia.

On July 28, VinFast broke ground at its new EV manufacturing facility in the U.S. The event marked a significant step toward its global expansion and supply chain development in North America. A total investment of $4 billion is expected to go to the project, with a half for the first phase.

VinFast was founded in 2017 and envisioned to drive the movement of global smart electric vehicle revolution. It operates a manufacturing complex in northern Vietnam’s Hai Phong that boasts up to 90% manufacturing automation and an annual production capacity of up to 300,000 units per year in phase one.

The first Vietnamese company listed on Nasdaq was Cavico which was delisted in 2011 due to violations in information disclosure.