Vietnamese brands are spreading globally.

VietNamNet•14/09/2023

For the first time, a major Vietnamese company is listed on the US stock exchange.

At 8 PM on August 15th (Vietnam time), more than 2.3 billion common shares of VinFast , the automobile company owned by billionaire Pham Nhat Vuong, were officially listed on the US Nasdaq stock exchange under the ticker symbol VFS.

This marks the first time a major Vietnamese company has listed its shares on a US stock exchange.

At the close of its first trading session on the Nasdaq, VinFast Auto shares, owned by billionaire Pham Nhat Vuong, surged above $37. VinFast's market capitalization reached $85 billion, surpassing Ford, General Motors, and many other renowned automakers.

Pham Nhat Vuong's assets also increased by tens of billions of USD, and he entered the top 30 richest people on the planet after VinFast's impressive debut on the Nasdaq.

*VinFast factory in Hai Phong . (Photo: M. Ha)*

According to Bloomberg, billionaire Pham Nhat Vuong's net worth increased by $39 billion to $44.3 billion after VinFast listed on the Nasdaq stock exchange at a price more than three times higher than its initial valuation.

Speaking online with the press on the morning of August 16th, after VinFast listed its VFS shares on the Nasdaq stock exchange in the US, Ms. Le Thi Thu Thuy, General Director of VinFast, stated that VinFast has great potential and the global electric vehicle market is vast. Whether or not they "succeed" depends on VinFast.

According to VinFast's global CEO, becoming a US-listed company is a significant milestone in VinFast's global development journey. This event demonstrates that a Vietnamese company has the potential to become a global enterprise.

VinFast was established in 2017 and is a business within the Vingroup ecosystem, chaired by Vietnam's richest billionaire, Pham Nhat Vuong.

Vietnamese brands are spreading globally.

VinFast not only impressed the US stock market with its very high valuation but is also expected to open the door to the US market for other Vietnamese companies, as many entities seek to access a larger capital market.

Approximately a year and a half after submitting its initial registration application to the U.S. Securities and Exchange Commission (SEC) on March 31, 2022, VinFast shares were listed on the Nasdaq stock exchange in the United States.

The listing of VFS shares on the US stock market is seen as a milestone in the journey of Vietnamese businesses to conquer international capital markets. It is considered a turning point for VinFast in particular and the Vietnamese capital market in general.

This deal is seen as an inspiring story for businesses venturing into international capital markets.

*The Vietnamese brand VinFast is expanding globally. (Photo: M. Ha)*

In the case of VinFast, with a market capitalization of tens of billions of USD, it is considered the first large Vietnamese enterprise to list its shares and access capital on the international market. In a recent report, Vingroup mentioned a plan to raise an estimated 1-2 billion USD on the US stock market between 2024 and 2026.

Ms. Le Thi Thu Thuy believes that listing on Nasdaq is not simply about transactions on the stock market, but also reflects strong confidence in VinFast's vision and potential.

The female CEO of VinFast also shared that the company is in the process of building a factory in North Carolina, expected to be operational from 2025 with a phase 1 capacity of 250,000 vehicles per year to better compete in the US market.

VinFast's listing on the US stock exchange comes amidst a recovery in global capital flows, with signs of a return to the electric vehicle sector.

According to Reuters, VinFast not only has its main factory in Hai Phong, Vietnam, and a factory under construction in North Carolina, USA, but also intends to invest $200 million in an electric vehicle factory in Indonesia by 2026. This is part of its plan to further expand into Asian markets.

VinFast is also considered a prime example of the positive economic relationship between Vietnam and the United States. It was also mentioned by US President Joe Biden during his visit to Vietnam on September 10th, following the agreement between the two countries to upgrade their relationship to a Comprehensive Strategic Partnership.

Manh Ha

VinFast's stock price soared to $210 billion then dropped to $70 billion; what did CEO Le Thi Thu Thuy say? VinFast CEO Le Thi Thu Thuy shared her perspective on the recent fluctuations in the electric vehicle manufacturer's stock price.

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