What's going on?

Since its listing on the Nasdaq on August 15th, VinFast (VFS) shares have achieved truly impressive growth. At the close of trading on August 25th, VFS had risen by over 40%, reaching $68.77. After a week of five consecutive days of gains, VinFast's market capitalization has grown impressively, from $123 billion to approximately $160 billion.

In terms of market capitalization, VinFast has surpassed a number of long-established names such as GM, Ford, Volkswagen, BMW… If ranked in the automotive industry as a whole, VinFast currently ranks 3rd in the world , after Tesla and Toyota. And specifically in the electric vehicle segment, the company ranks 2nd after Tesla, which currently has a market capitalization of approximately $756 billion.

At the close of trading on Friday, VFS rose by more than 40%, to $68.77.

Economist Dinh Trong Thinh commented that the surge in VFS stock price over several consecutive sessions is truly an unexpected phenomenon. Compared to its lowest price, VFS stock has increased more than sixfold. Few stocks achieve this level of growth in such a short period of just a few days.

“ In particular, this growth on the NASDAQ and in the US market is very transparent; there is no stock manipulation because they manage and supervise it extremely strictly. Therefore, I consider this growth a rare and unusual phenomenon. This is also a great victory for VinFast in the process of listing on an international stock exchange ,” Mr. Thinh commented.

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This growth is on the NASDAQ exchange, so it's very transparent; there's no question of stock manipulation because they manage and monitor it extremely strictly.

Economist Dinh Trong Thinh

In addition, according to Mr. Thinh, technology-related stocks are more likely to attract investment on the NASDAQ exchange. VinFast is considered by experts to be a technology-driven car manufacturer with advanced science, high stability, and automation, especially its accessories related to the dashboard, which are relatively modern.

Furthermore, electric cars are a field of the future, so American investors see high feasibility. They are willing to buy in, driving prices up.

" Following the green development trend, this is a global trend for the future. Tesla's stock has seen significant growth, stability, and good price appreciation in the past. Therefore, when VinFast enters the market, investors see its potential and significant impact on the Asian region. This is a region with strong growth, so the opportunity for VinFast to grow will be better ," Mr. Thinh commented.

According to Mr. Thinh, the rapid increase in VinFast's stock price will be a driving force and inspiration for many Vietnamese businesses to confidently enter the global arena, and also shows that foreign investors are paying close attention to Vietnamese businesses, as well as new businesses with high growth potential.

Vinfast's share price reached $68.77 at the close of trading on August 25.

Sharing the same view, Mr. Phan Manh Ha, Business Director of VnDirect, affirmed that Vingroup's owner, billionaire Pham Nhat Vuong, is a businessman with a very far-sighted, profound vision and a strategic approach to the economic development of his company.

Furthermore, Vingroup in general, and VinFast in particular, are very large in scale and have a strong position in the international market. Therefore, VinFast has chosen to list on the NASDAQ stock exchange in the United States.

“ Having made the choice, VinFast must certainly meet the stringent requirements of the U.S. Securities and Exchange Commission (SEC) and international investors. This also demonstrates VinFast's flexibility and determination in the context of a volatile global capital market. This is therefore the clearest direction for other Vietnamese businesses if they want to conquer the international capital market ,” Mr. Phan Manh Ha commented.

The fact that VFS's share price on the Nasdaq has risen rapidly shows that Vingroup has proven that, in order to realize that dream, the company must build an extremely strong foundation to meet international listing standards and demonstrate its competitiveness.

“ The US stock market is a very dynamic, professional, and volatile market, not a calm and quiet one. Therefore, Vietnamese businesses need a team of professional advisors to develop in the right direction and sustainably, ” Mr. Ha said.

According to Mr. Ha, positive effects will soon be created and spread throughout the business community. VinFast's story will certainly inspire and motivate large businesses in Vietnam to follow in VinFast's footsteps and bring Vietnamese brands to the international stage.

“ VinFast is a major brand. Vingroup itself is looking to attract a large amount of international capital to continue investing in growth, expanding production scale, and increasing the number of vehicles, ” said Mr. Phan Manh Ha.

Meanwhile, Mr. Dang Tran Phuc, Chairman of the Board of Directors of AzFin Vietnam Joint Stock Company, believes that the rapid increase in VFS's share price is only a reflection of the initial listing, and the purpose of the listing lies in two main objectives. Firstly, brand promotion and marketing. VinFast has achieved this very well, with the world press mentioning VinFast extensively since its listing on the US stock exchange.

Secondly, there's the issue of raising capital for production and business objectives. It's too early to say whether this will be successful, but the recent increase in VinFast's value demonstrates its relatively rapid success abroad, especially in the US.

“ This is an opportunity to access significant capital and increase the company's value in the global market. Therefore, when VinFast successfully lists on NASDAQ, it will certainly strengthen the confidence and motivation of Vietnamese businesses, creating momentum for Vietnamese enterprises to turn their dreams into reality, ” Mr. Phuc said.

According to Mr. Phuc, Vingroup has very ambitious dreams, which is to bring its products and brand to the US market. To affirm this, VinFast has opened a very large automobile manufacturing plant in the US. Therefore, VinFast's listing on the US stock exchange is a win-win situation: raising capital from the foreign market while simultaneously implementing a very effective PR and marketing strategy.

In a recent press interview, Ms. Le Thi Thu Thuy, Global CEO of VinFast, stated that the surge in VinFast's share price was an unexpected success. However, according to Ms. Thuy, this was anticipated by VinFast because the company's actual value is even higher.

According to Ms. Thuy, the reason for the high increase in market capitalization during this period is that VinFast offered a limited number of shares, while trading demand was very high, with the number of transactions increasing to 6.7 million shares. Investors confirmed that VinFast has significant value and enjoys market confidence.

According to Ms. Thuy, listing in the US and raising capital are just the first steps; VinFast will then have to meet with banks and investors to finalize further transactions.

" As a business, we either don't do something at all, or if we do something, we do it thoroughly and tackle the most difficult challenges. The US market has high liquidity and large capital resources, and for VinFast to raise significant capital will help us continue developing electric vehicles and become a global company ," Ms. Thuy emphasized.

CEO Le Thi Thu Thuy also stated that VinFast's factory in Vietnam currently has a capacity of 300,000 vehicles per year, and the company plans to expand this to 950,000 vehicles per year. The advantage in labor costs, along with a sustainable supply chain, has created a significant competitive edge for VinFast. In addition, the North Carolina factory will begin operations with a capacity of 150,000 vehicles per year and may also expand production according to market demand.

Ngoc Vy - Pham Duy

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