Listing on the US stock exchange, VinFast realizes the dream of Vietnamese businesses conquering the international market.

On August 15th, VinFast 's common stock and warrants are expected to begin trading on the Nasdaq Stock Market LLC (“Nasdaq”) under the new ticker symbols “VFS” and “VFSWW”, respectively.

With this event, VinFast will be considered the first Vietnamese company to be directly listed on an international stock exchange. Nasdaq is a leading technology stock exchange in the US and the world .

Previously, Vingroup had listed bonds in Singapore, but successfully listing VinFast on the US stock exchange will further enhance the company's standing in the eyes of international investors.

It took over a year to realize the dream of an international listing.

“ Vingroup has officially entered the global arena with the determination to conquer the world ,” the opening sentence of Vingroup’s 2022 annual report is also an affirmation by Mr. Pham Nhat Vuong of his ambition to bring Vietnamese brands to the international level. The VinFast listing on the US stock exchange on August 15th will mark a major step forward in realizing a dream that at one point seemed impossible for the Vingroup Chairman.

The process of VinFast's listing began in early 2022. Specifically, in January 2022, Vingroup (HoSE: VIC) announced plans to list shares of its automotive manufacturing company, VinFast, on the US stock exchange. VinFast would work with consultants from leading global investment banks to finalize the listing in the second half of 2022.

VinFast will be listed on the US stock exchange on August 15, 2023. (Illustrative image)

To undertake this major undertaking, Vingroup actively restructured. In December 2021, the Vingroup Board of Directors approved the transfer of its entire 51.52% stake in VinFast Manufacturing and Trading Company Limited (VinFast Vietnam) to VinFast Trading and Investment Pte. Ltd., a subsidiary of Vingroup Group headquartered in Singapore (VinFast Singapore).

After completing the restructuring process, Vingroup and the existing shareholders of VinFast Vietnam directly own 100% of VinFast Singapore's capital, thereby indirectly owning 99.9% of VinFast Vietnam.

Vingroup Vice President Le Thi Thu Thuy stated that the reason for transferring the entire stake from VinFast Vietnam to VinFast Singapore is that listing Vietnamese companies abroad, especially in the US, has not been possible due to a lack of legal interoperability and related coordination mechanisms. Therefore, VinFast was compelled to list through VinFast Singapore because Singapore already has established connections with the US in this field.

According to Ms. Thuy, a successful listing in the US will open opportunities for VinFast to access international capital, attract investment in technology and engineering, and contribute to realizing the strategy of making VinFast a global brand. This will also make it easier for VinFast to market and introduce its products to the US market.

Vingroup has officially entered the global arena with a determination to conquer the world.

Chairman of Vingroup Pham Nhat Vuong

On May 12, 2023, VinFast and Black Spade Acquisition Co. (Black Spade) announced a merger agreement. Following the transaction, VinFast was valued at over $23 billion and continued its plan to list on a US stock exchange.

On August 10, 2023, shareholders of Black Spade Acquisition Co. approved the business consolidation plan at a Special General Meeting (“EGM”). The formal voting results will be included in the Form 8-K Report filed by Black Spade with the SEC.

The merger transaction is expected to be completed on August 14th. Following the transaction, VinFast will operate as a consolidated company. Common shares and warrants of the Vietnamese electric vehicle manufacturer are expected to begin trading on the Nasdaq Stock Market LLC (“Nasdaq”) on August 15th, under the new ticker symbols “VFS” and “VFSWW”, respectively.

Big dreams are not unique to anyone.

According to stock market investment expert Phan Dung Khanh, if VinFast successfully lists on Nasdaq, this would be a strong and positive impact on all stock groups of companies listed on the Vietnamese stock exchange under Vingroup, and would also be the most noteworthy news on the Vietnamese stock market.

Besides VinFast, many Vietnamese businesses have also been seeking to list on the world's largest stock exchanges, as this is a major dream that many companies aspire to and strive to realize.

VinFast is a pioneer in venturing into the international capital market. (Illustrative image)

In September 2009, a Vietnamese company, Cavico Construction Company, announced its listing on Nasdaq, but through a SPAC (Special Public Offering) rather than a traditional IPO.

The trend of SPACs – a form of "special purpose acquisition" or reverse merger – aims to bring these private companies to the stock exchange in the shortest possible time, significantly shortening the traditional IPO listing process.

However, in 2011, the Nasdaq announced its decision to delist Cavico shares due to the company's failure to submit its 2010 financial reports on time.

In 2022, Thaiholdings (HNX: THD) also announced its intention to IPO its newly established company, Thaispace, on the US stock market within the same year.

Thaispace has a projected charter capital of 26.688 billion VND. Thaispace was established with the goal of developing and applying space science and technology. Between 2026 and 2030, Thaispace expects to have its first space flight from Phu Quoc, if it receives permission from the relevant authorities.

Tiki, a Vietnamese e-commerce platform, also plans to list in the US. Mr. Tran Ngoc Thai Son, founder and CEO of Tiki, said the company initially planned to list in the US in 2025, but this could happen sooner. The company may conduct an IPO through a SPAC (Special Purpose Asset Management Company).

VNG, a Vietnamese online gaming company that was previously invested in by Singaporean asset fund GIC, is also considering listing its shares in the US through a merger with a SPAC. This deal could value VNG at $2-3 billion. According to Bloomberg , the company has had plans to list on Nasdaq since 2017.

Big Invest Group, a real estate company, also plans to IPO in New York to raise $200 billion. Established in late 2017 with an initial capital of 10 billion VND, the company initially specialized in buying and selling construction materials and machinery. Currently, Big Invest Group has a registered capital of 50 billion VND, and its main business has shifted to real estate consulting and brokerage.

Successful listing abroad, especially in the US, offers access to significant capital and increases a company's value in the global market. However, this "dream" is not achievable for every Vietnamese business, as not all companies meet the listing/trading requirements and operate in sectors that attract global investors.

The United States owns the two largest electronic stock exchanges in the world, the NYSE and Nasdaq. Foreign companies wishing to list on these exchanges must meet one of four stringent financial criteria regarding revenue, profit, cash flow, and market capitalization, along with other requirements for stock liquidity.

Ngoc Vy

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