In a stunning market debut, Vietnamese electric vehicle maker VinFast has skyrocketed in value, now worth almost as much as Ford and General Motors combined. The company’s shares surged over 250% in their Spac-led debut on Tuesday, leaving VinFast with a market capitalization of $85 billion. However, despite this impressive feat, VinFast is yet to turn a profit and has faced criticism for its initial car shipments to the US. With its founder and chairman, Pham Nhat Vuong, now the richest person in Vietnam, the company’s rise has been nothing short of extraordinary, but some skeptics wonder if the surge will be short-lived, following a pattern seen with other Spac companies.

Vietnamese EV Maker VinFast Worth Almost as Much as Ford and GM

VinFast, a Vietnamese electric vehicle (EV) manufacturer, made a remarkable market debut on Tuesday, with its shares soaring more than 250%. This surge in value now leaves the company worth an impressive $85 billion, almost as much as Ford and General Motors combined. However, it is worth noting that VinFast is yet to turn a profit, and its initial car shipments to the US have faced criticism.

VinFast’s rapid rise in value has made its founder and chairman, Pham Nhat Vuong, the richest person in Vietnam. He currently owns around 99% of the company and saw his net worth increase by a staggering $39 billion in just one day. This impressive market debut has undoubtedly put VinFast on the map as a significant player in the EV industry.

Despite the company’s success, it has faced some challenges. The first shipments of VinFast vehicles to the US received negative reviews. However, the CEO, Le Thi Thu Thuy, emphasized that they take these reviews seriously and use them to improve their products. It is crucial for VinFast to address any issues and ensure the quality and performance of their vehicles meet customer expectations.

While VinFast’s market debut has been astonishing, it is essential to put its initial success into perspective. The company delivered only 11,300 vehicles in the first half of this year, which is significantly lower than its larger competitors such as Tesla and BYD, who delivered 889,000 and 1.26 million vehicles, respectively, in the same period. This highlights the challenges VinFast will face as it seeks to establish itself as a major player in the global EV market.

VinFast went public through a special purchase acquisition company (Spac), using the Hong Kong-based blank-check firm Black Spade Acquisition. It is worth noting that many Spacs have seen their share prices decline after their market debuts as traders seek quick profits. Therefore, it remains to be seen whether VinFast’s surge in value will be sustained or short-lived.

Overall, VinFast’s impressive market debut has positioned the Vietnamese EV maker as a significant contender in the industry. Despite the initial challenges and criticisms, the company’s founder and chairman’s wealth has skyrocketed, and VinFast’s market value is now comparable to established automotive giants. However, the company will need to overcome hurdles, including improving its vehicle quality and production scale, to compete with industry leaders in the long term.

Takeaways:

• VinFast, a Vietnamese EV manufacturer, saw its shares soar more than 250% on its market debut, making it worth $85 billion.
• The founder and chairman of VinFast, Pham Nhat Vuong, became the richest person in Vietnam, with a net worth of $44.3 billion.
• Despite the company’s success, VinFast is yet to turn a profit and faced criticism for its initial car shipments to the US.
• VinFast delivered only 11,300 vehicles in the first half of this year, significantly less than its larger competitors.
• VinFast went public through a Spac, but it remains to be seen if its surge in value will be sustained.