VinFast, the rising star of the stock market… or a shooting star?

VinFast successfully went public. Before applauding too quickly, however, let’s remember that each dizzying climb can hide equally great challenges.

VinFast is nothing new. We remember its 100% electric SUV, the VF8, and the visit to its gigantic factory in Vietnam. As a reminder, VinFast is a subsidiary of Vingroup, one of the largest private conglomerates in Vietnam. Founded in 2017, it is relatively young in the automotive industry, and quickly decided to go all-electric.

But, what has generated a lot of interest recently is its IPO. With a market capitalization of 85 billion dollars (77 billion euros), VinFast is now one of the historical behemoths of the industry. To put these numbers into perspective, Ford and General Motors, two American giants, are valued at $48 billion and $46 billion respectively.

VinFast

VF9

Product sheet

Getting started

€62,750

VinFast

VF8

Product sheet

Getting started

€46,050

VinFast

VF7

Product sheet

The tactic used for this IPO is equally intriguing. Instead of following a classic introduction, VinFast chose the route of merging with a front company, known as SPAC. This approach often speeds up the IPO process, but it is also more volatile. And this was confirmed with a significant fluctuation in the price of VinFast’s shares on NASDAQ.

Investors are certainly betting heavily on the promising future of electric mobility, and VinFast, as a newcomer, is benefiting from this wave of optimism. But beware, the enthusiasm around electric cars has already caused speculative bubbles in the past. Take the example of Rivian, which was valued at $150 billion in 2021 before plummeting in the face of supply challenges. VinFast, despite its impressive rating, also has its challenges.

We are still waiting for the VF8 in France

Its electric SUV, the VF8, while innovative, has not been without its problems. Its consumption turned out to be higher than expected, and product recalls were required soon after its launch. In France, the marketing of the VF8 is still pending, pending approvalalthough the brand already has showrooms in cities like Rennes and Paris.

After our first contact with VinFast’s VF8, and even recently, we are resolutely optimistic. It’s a daring SUV, with an excellent equipment package and a convincing drive. However, we look forward to testing the officially homologated models for the European market. In the meantime, be patient.

VinFast, as Vietnam’s first automaker to venture onto the global stage, has big ambitions. Behind the brand is the billionaire Pham Nhat Vuong, main shareholder of Vingroup. The company is betting big on electric mobility, with projects ranging from SUVs (including the enormous VF9 or the much more compact VF7) to electric bicycles.

However, the road to global success is strewn with obstacles. Chinese automakers, armed with technology and capital, share similar goals. For VinFast, the challenge will be to skillfully navigate this competitive market while offering distinctive and reliable products. And, it is far from over.