What's going on?

Since being listed on Nasdaq on August 15, VinFast (VFS) shares have achieved truly impressive growth. At the end of the trading session on August 25, VFS increased by more than 40%, to 68.77 USD. After 1 week with 5 consecutive increasing sessions, VinFast's capitalization has grown very impressively, from 123 billion USD, to approximately 160 billion USD.

In terms of market capitalization, VinFast has surpassed a series of long-standing names such as GM, Ford, Volkswagen, BMW, etc. If ranked by the automobile industry in general, VinFast is currently ranked 3rd in the world, after Tesla and Toyota. In terms of electric cars alone, the company is ranked 2nd after Tesla, currently with a market capitalization of approximately 756 billion USD.

At the end of the weekend trading session, VFS increased by more than 40% to 68.77 USD.

Economist Dinh Trong Thinh commented that the fact that VFS stock price has exploded over many consecutive sessions is truly an unexpected phenomenon. Compared to the bottom price, VFS stock price has increased more than 6 times. There are few stocks that can achieve this growth rate in just a few days.

“ In particular, this growth on the NASDAQ floor and in the US market is very transparent, there is no stock manipulation because they manage and supervise very closely. Therefore, I consider this growth to be a strange and rare phenomenon. This is also a great victory for VinFast in the process of listing on the international stock exchange ,” Mr. Thinh commented.

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This growth is on the NASDAQ floor so it is very transparent, there is no stock manipulation because they manage and monitor very closely.

Economist Dinh Trong Thinh

In addition, according to Mr. Thinh, technology-related stocks are more likely to attract cash flow on the NASDAQ. VinFast is considered by experts to be a technology car company with advanced science, high stability and automation, especially VinFast's accessories related to the dashboard are relatively modern.

Besides, electric cars are the field of the future, so American investors see high feasibility. They are willing to buy, pushing prices up.

" Following the green development trend, this is a global trend in the future. It can be seen that Tesla's stock has also increased very strongly, has stability and good price appreciation in the past. Therefore, when VinFast enters, investors also see the potential and have a great influence on the Asian region. This is a region with strong growth, so the opportunity for VinFast to grow will be better, " Mr. Thinh commented.

According to Mr. Thinh, the rapid increase in VinFast shares will be the driving force and inspiration for many Vietnamese enterprises to confidently enter the world's playgrounds and also shows that foreign investors are also paying close attention to Vietnamese enterprises as well as new enterprises with great growth potential.

Vinfast stock price reached 68.77 USD after the end of trading session on August 25.

Sharing the same view, Mr. Phan Manh Ha, Sales Director of VnDirect, affirmed that Vingroup's owner, billionaire Pham Nhat Vuong, is a businessman with a very far-sighted, very deep vision and a strategy in the economic development of the enterprise.

Along with that, the scale of Vingroup in general and VinFast in particular is also very large and has a position in the current international market. Therefore, VinFast has chosen to list on the NASDAQ of the US.

“ Once selected, VinFast must certainly meet the strict requirements of the US Securities and Exchange Commission (SEC) and international investors. This also demonstrates VinFast’s flexibility and determination in the context of the global capital market with many fluctuations. This is therefore the clearest direction for other Vietnamese enterprises if they want to conquer the international capital market ,” said Mr. Phan Manh Ha.

The fact that VFS's stock price on Nasdaq has increased rapidly shows that Vingroup has proven that, to realize that dream, the enterprise must build an extremely strong foundation to meet international listing standards and demonstrate its competitiveness.

“ The US stock market is a very dynamic, professional and volatile market, not a gentle and quiet market. Therefore, Vietnamese businesses need a team of professional consultants to develop in the right direction and sustainably, ” said Mr. Ha.

According to Mr. Ha, positive effects will soon be created and spread throughout the business community. VinFast's story will certainly inspire and help large enterprises in Vietnam gain more motivation and experience to follow VinFast's footsteps to bring Vietnamese brands to the international level.

“ VinFast is a big brand. Vingroup itself is also looking to attract a large amount of international capital to continue investing in growth, expanding production scale, and increasing the number of cars, ” said Mr. Phan Manh Ha.

Mr. Dang Tran Phuc, Chairman of the Board of Directors of AzFin Vietnam Joint Stock Company, said that the rapid increase in VFS stock price is only a reflection of the initial listing, and the purpose of the listing is reflected in two main purposes. First, is to promote the brand and marketing. With this purpose, VinFast has achieved very well when the world press has mentioned VinFast a lot since its listing on the US stock exchange.

Second, is to mobilize capital to serve production and business purposes. It is not yet possible to say whether this mobilization is successful or not, but the increase in value of VinFast in recent days shows the rapid success of VinFast abroad, especially in the US.

“ This is an opportunity to access large capital sources as well as increase the company's value in the global market. Therefore, when VinFast is successfully listed on the NASDAQ, the confidence and motivation of Vietnamese enterprises will certainly be more firmly consolidated, creating momentum for Vietnamese enterprises to turn their dreams into reality, " said Mr. Phuc.

According to Mr. Phuc, Vingroup has very big dreams, which is to bring its products and brands to the US market. And to confirm this, VinFast has opened a very large car factory in the US. Therefore, VinFast's listing on the US stock exchange is a two-pronged arrow, raising capital from foreign markets while implementing a very good PR - Marketing strategy.

In a recent press interview, Ms. Le Thi Thu Thuy, General Director of VinFast Global, said that the increase in VinFast's stock price was an unexpected success. However, according to Ms. Thuy, this was planned by VinFast because the actual value of VinFast is even higher.

According to Ms. Thuy, the reason for the high capitalization value this time is because VinFast offered a small number of outstanding shares, while the trading demand was very high, with the number of transactions increasing to 6.7 million shares. Investors confirmed that VinFast has great value and is trusted by the market.

According to Ms. Thuy, listing in the US and raising capital are just the first steps. Next, VinFast must meet with banks and investors to make further transactions.

" As a business, if you don't do anything, then don't do it. If you do something, you have to do it thoroughly and do the most difficult things. The US market has high liquidity, large capital sources, and VinFast can mobilize large capital to help continue developing electric vehicles and become a global company ," Ms. Thuy emphasized.

CEO Le Thi Thu Thuy also said that currently, VinFast's factory in Vietnam can reach a capacity of 300,000 vehicles/year and the company has plans to expand its scale to 950,000 vehicles/year. The advantage in labor costs, along with a sustainable supply chain, has created a great competitive advantage for VinFast. In addition, the North Carolina factory will operate with a capacity of 150,000 vehicles/year and can also expand production scale according to market demand.

Ngoc Vy - Pham Duy

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