Welth of Geeks by Liam Gibson
Electric Vehicle (EV) Startups in Vietnam Vinfast is gaining momentum for its US public market debut.
VinFast filed with the Securities and Exchange Commission (SEC) on December 6th. No release date has been announced, but he will be listed on the Nasdaq under the ticker “VFS.” No details were given on total unit count or pricing, but the filing fee schedule indicates that VinFast aims to raise his $100 million via an initial public offering (IPO).
However, it may be a placeholder sum. Bloomberg’s previous report estimated that his IPO of the company could raise his $2 billion after he filed the first classified documents with the SEC in April.
Founded in 2017 by Vietnam’s richest man and first billionaire, Pham Nhat Vuon, VinFast is based in Hai Phong, a major coastal city in northeast Vietnam. We are phasing out all internal combustion engines this year and are now only building EVs. It produces battery-powered scooters and buses to complement its electric vehicle line-up.
Vingroup is one of Vietnam’s largest conglomerates and owns numerous businesses covering real estate, education and consumer technology, and Vsmart is one of Vietnam’s leading smartphone brands. Earlier this year, Vingroup and its two listed subsidiaries together accounted for nearly 30{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of the value of Vietnam’s stock exchange. The Group’s revenues alone generate about 2{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} of the country’s GDP.
Until now, Vinfast has mainly been a domestic brand in the domestic market. VinFast’s vehicles are currently being produced in Haiphong, but the company recently built his $2 billion factory site in North Carolina and plans to roll at least 150,000 cars off the assembly line after July 2024. We plan to use the funds raised from the IPO to further facilitate our international expansion. The deal is likely to take place in 2023, but Vinfast aims to gain a foothold in the American market and start selling cars in California by the end of the year.
VinFast model. (VinFast image)
VinFast’s first EV product line features A-segment to E-segment electric Sport Utility Vehicle (SUV) models. We are accepting reservations for two electric SUVs, the midsize VF8 and the large VF9.
The company is currently operating at a loss. In his first three quarters of 2022, he made $439 million in revenue, while his total expenses were $1.5 billion.
As an EV manufacturer, VinFast is also vulnerable to the ongoing semiconductor crisis. The company has had to delay shipments of the VF8 and his VF9 models to Europe this year, and could face a similar setback again depending on supply-side constraints.
VinFast Builds Talent Pipeline for Technicians Ahead of 2024 Factory Opening
EV market boom
The US EV market has grown rapidly since the pandemic. According to the U.S. Department of Energy, EV sales in the U.S. will grow 85{ea2cba5bdf6fe62bbe85e24807814144a71e77d3ae7311fbc27a008558d1372c} from 2020 to 2021.
EV brands are also on the rise. In addition to industry leader Tesla, automakers such as Ford, General Motors, Volkswagen, Lucid, Rivian, Polestar and Fisker are all competing for market share.
Vinfast could threaten Tesla’s position by offering comparable cars at much lower prices. Vinfast is also working with established European car brands such as BMW and Bosch to develop new models.
If Vinfast can pull off a big IPO and build a secure beachhead in the US market, Tesla could have a cash advantage in the future.
Investors are considering how Vinfast can differentiate its offerings in an increasingly saturated market and whether rising demand for EVs can keep up with the company’s ambitious expansion plans when considering an IPO. may consider.
About the author
Liam Gibsonis based in Taiwan and is a business news reporter for Taiwan News, according to his profile on Muck Rack.freelance journalist
Taipei Articles: Taiwan News, Al Jazeera English, Nikkei Asia, South China Morning Post, Cointelegraph, Austin American-Statesman, LifeSiteNews.com, 24/7 Wall Street, Taipei Times, The Diplomat Magazine, The National Interest and more.
This article was written and distributed by Wealth of Geeks and was originally published at: https://wealthofgeeks.com/vietnams-vinfast-100-million-ipo/
Vietnam’s Vinfast Makes Profit for US Market with $100 Million IPO
