Title: Vietnamese Automaker VinFast’s Wall Street Debut Surpasses Auto Giants Volkswagen and Ford
In a surprising turn of events, Vietnamese automaker VinFast has surpassed industry giants Volkswagen and Ford in terms of market capitalization after its strong debut on Wall Street. The company’s shares skyrocketed by a staggering 270% on the Nasdaq following its merger with a special purpose acquisition company (SPAC). This monumental feat has positioned VinFast as a major player in the automotive industry, with its market cap now exceeding $85 billion, outperforming Volkswagen’s 63.9 billion euros and Ford’s $48 billion.
It is worth noting, however, that the rally was based on thin trade as 99% of VinFast is still owned by Vietnam’s richest man, Pham Nhat Vuong. Vuong’s wealth experienced an astronomical surge on Tuesday, increasing by approximately $39 billion, bringing his estimated net worth to $44.3 billion. This massive boost in wealth further solidifies his seemingly unstoppable success.
VinFast, a subsidiary of Vingroup, is primarily known for manufacturing electric SUVs, scooters, and buses. Remarkably, the company has now become the largest US-listed Vietnamese company based on market capitalization. While the brand has already established itself as a household name in Vietnam, it has faced challenging times in the United States due to poor reviews of its electric SUVs.
Nonetheless, VinFast plans to utilize the funds raised from its listing to drive expansion and establish its presence in new markets, including Europe. The company aims to overcome its previous setbacks by rejuvenating its product portfolio and addressing any criticisms it has faced in the US market.
However, it is worth mentioning that VinFast is still grappling with profitability. According to recent reports, the company reported a loss of $1.4 billion for the nine months through September 2023 and carries approximately $2.5 billion in debt. Despite these challenges, VinFast remains determined to forge ahead and strengthen its position as a key player in the global automotive industry.
In conclusion, VinFast’s astounding debut on Wall Street has thrust the Vietnamese automaker into the spotlight, surpassing industry giants Volkswagen and Ford in terms of market capitalization. While the company faces some hurdles, it is armed with a vision to expand its operations and venture into new markets, with Europe being a top priority. Only time will tell if VinFast can maintain its momentum and continue to disrupt the global automotive landscape.