
Vietnamese electric vehicle (EV) maker VinFast has achieved an impressive stock market debut on the New York Stock Exchange, with its shares closing above $37 each, resulting in a market valuation of $85 billion. This valuation has propelled VinFast ahead of established automotive giants Ford and General Motors (GM), valued at $48 billion and $46 billion respectively. Despite currently operating without profitability, VinFast’s entry into the market has caught attention as global automakers fiercely compete in the rapidly growing EV sector.
The company’s founder and chairman, Pham Nhat Vuong, already Vietnam’s wealthiest individual, saw his wealth surge by approximately $39 billion due to the listing. He controls 99% of VinFast’s shares through Vingroup JSC, the largest conglomerate in Vietnam. This concentrated ownership structure can result in significant price fluctuations due to the limited number of shares available for trading.
In contrast to traditional initial public offerings (IPOs), VinFast opted for a special purpose acquisition company (SPAC) to facilitate its public listing. While established competitors like Tesla and BYD remain in the forefront of the EV market, industry experts believe that VinFast’s backing by Vingroup provides a solid foundation for success in the competitive EV sector, which is experiencing heightened demand and rapid innovation.