VinFast: Vietnam's Electric Car Giant Challenging Tesla and Toyota

In the world of electric cars, a new name has been making waves: VinFast. This Vietnamese automaker has seen its market value skyrocket since its initial public offering (IPO) earlier this month, positioning it as a contender alongside industry giants Tesla and Toyota.

VinFast's recent IPO caused a stir in the market, with its shares surging by 23% in just one Monday morning. Just two weeks after it debuted on the Nasdaq Global Select Market at a share price of $10, the stock traded at an impressive $83.16. This price elevation shot VinFast's valuation from $23 billion post-IPO to a staggering $189 billion. While this makes VinFast the third most-valuable automaker in the world, it's essential to note that its production is yet to match its competitors. VinFast aims to sell around 50,000 electric vehicles this year, in contrast to Tesla's projected 1.8 million and Toyota's goal of 1.5 million EVs annually by 2026.

VinFast is the brainchild of billionaire founder Pham Nhat Vuong, recognized by Forbes as the world's 23rd richest individual. Through various holdings, including those with his spouse and his business conglomerate Vingroup JSC, Vuong controls about 99% of VinFast. One intriguing fact is the company's trading volume, which is considerably less than that of its rivals. For instance, last Monday, VinFast had 2.1 million shares traded, while Tesla saw a trading volume of 135.7 million.

VinFast is not just about numbers; it's also expanding its global footprint. Last month, the automaker initiated the development of its inaugural American factory in North Carolina. However, their presence in the U.S is currently minimal, with only 137 of their electric vehicles registered on U.S roads by June.

The company's rapid rise is a testament to its ambitious vision. Established by Vuong in 2017, by the next year, VinFast had already struck a deal with Chevrolet, gaining exclusive rights to sell the brand in Vietnam and even acquiring a General Motors’ factory in Hanoi. By 2021, VinFast was shipping electric crossovers to its customers. Currently, its VF8 electric SUV is the sole model available in the U.S, though more are on the horizon.

Yet, it hasn't been all smooth sailing. VinFast had to recall all cars sent to the U.S earlier due to a screen malfunction. Moreover, 2022 wasn't profitable for them, with reported losses of $2.1 billion.

Despite challenges, VinFast's rapid ascent in the EV market highlights its potential to reshape the industry's landscape. With its ambitious plans and rapid growth, it's a name to watch in the coming years.