New York, 16 Aug, 2023 (GNP): The market value of one of Vietnam’s prominent automakers, VinFast, has risen above that of industry titans like Volkswagen and Ford.
VinFast, a distinguished player in Vietnam’s automotive sector and a pioneer in electric vehicle manufacturing, orchestrated an impressive debut on Wall Street on Tuesday that sent shockwaves through the industry. Following a strategic merger with a special purpose acquisition company (SPAC), Black Spade Acquisition Co., VinFast’s stock ignited a blazing ascent on its Nasdaq debut.
During its first day of trading, the combined entity’s shares experienced an astonishing surge of 270%, captivating market attention. The opening price of $22, more than doubling its initial value of $10, ultimately led to a closing price of $37 per share.
This meteoric rise catapulted VinFast’s market capitalization beyond $85 billion, a figure that now surpasses the valuations of industry giants Volkswagen (VLKAF) and Ford (F), valued at approximately 63.9 billion euros ($69.7 billion) and $48 billion respectively, as reported by sources.
However, it’s important to note that this extraordinary rally was rooted in relatively light trading. VinFast remains predominantly under the ownership of Vietnam’s preeminent tycoon, Pham Nhat Vuong, who retains a 99% stake through shares held by his other corporate entity, Vingroup, along with various affiliated business ventures, according to a regulatory filing.
In the wake of the remarkable stock performance, Vuong, who holds chairman positions at both Vingroup and VinFast, witnessed a staggering increase of about $39 billion in his own wealth on Tuesday, according to the sources. His net worth has now ascended to an estimated $44.3 billion.
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Established in 2017 as a subsidiary of Vingroup, one of Vietnam’s most prominent conglomerates, VinFast has carved a niche in producing electric SUVs, scooters, and buses, which enjoy demand in both the domestic Vietnamese market and North America.
The resounding success on its first day of trading has positioned VinFast as the leading Vietnamese company by market capitalization within the US-listed domain, underscoring the company’s burgeoning prominence on the global stage.
CEO Thuy Le articulated the company’s vision, stating, “We anticipate that VinFast’s listing will serve as a catalyst, inspiring and facilitating greater opportunities for Vietnamese brands to participate actively in the global market.” This resounding achievement heralds an exciting new chapter in the trajectory of Vietnamese enterprise and innovation.
