VinFast rebounds after 3 sessions of decline

In the trading session on August 21 (US time), VinFast shares increased strongly again from the beginning, ending a series of 3 consecutive declines.

Closing the session on August 21 (early morning of August 22, Vietnam time), VinFast shares (VFS) increased by nearly 14.2% to 17.58 USD/share. The strong increase in VFS price helped billionaire Pham Nhat Vuong's assets increase by nearly 10.6%, equivalent to an increase of 2.2 billion USD to 23.5 billion USD.

With this fortune, billionaire Pham Nhat Vuong ranks 68th on Forbes' list of the richest people on the planet.

However, the Chairman of Vingroup Corporation (VIC) - the parent company of VinFast car company - has not regained the richest position in Southeast Asia as he achieved in VinFast's debut on the Nasdaq stock exchange on August 15 and in the following two sessions.

In the Nasdaq listing session on August 15, VinFast shares closed at over $37/share, equivalent to a Vietnamese car company with a capitalization of $85 billion. Billionaire Pham Nhat Vuong was then estimated by Forbes and Bloomberg to have assets of about $44.5 billion, ranking in the top 30 richest people.

VinFast shares then fell sharply for three consecutive sessions, at one point falling to nearly $13/share. This is also common for shares of electric car companies listed on the international stock exchange. Investors' expectations for electric car companies are often very high, but this is a new field with many difficulties.

Volatility is also common for stocks listed through SPACs - a form of back door listing, or reverse merger.

Billionaire Vuong ranked 4th in Southeast Asia, VinFast still has many challenges

With assets of 23.5 billion USD as of August 22, billionaire Pham Nhat Vuong ranked 68th on the Forbes list, after the 3 richest billionaires in Southeast Asia, all of whom are Indonesian: R. Budi Hartono (nearly 26 billion USD), Michael Hartono (nearly 25 billion USD) and Low Tuck Kwong (nearly 25 billion USD).

However, according to Forbes, Mr. Vuong is richer than the richest person in Thailand (over 13 billion USD), the richest person in Singapore (14 billion USD) and the richest person in Malaysia (11 billion USD). Mr. Vuong is also richer than the richest person in Korea, Samsung Chairman Jay Y. Lee (8.4 billion USD).

Billionaire Pham Nhat Vuong is only slightly behind Chinese billionaire Jack Ma (owner of Alibaba, who has more than 24 billion USD) but is richer than the family of billionaire Ha Huong Kien, owner of China's largest home appliance manufacturer Midea (who has 23 billion USD).

With VinFast, this car company currently has a capitalization of 40.5 billion USD, still above Hyundai (33 billion USD), Kia (23.6 billion USD), Nissan (16.4 billion USD)... but lower than Mercedes-Bens (80 billion USD), BMW (71 billion USD), Volkswagen (70.8 billion USD), Ferrari (56 billion USD), Honda (48 billion USD), Ford (47.8 billion USD), GM (46 billion USD)...

VinFast shares rebounded and recorded exciting trading on August 21, which is believed to be due to the bottom-fishing efforts of an ambitious electric car company. In addition, the low free float (about 4.5 million out of more than 2.3 billion listed VFS shares) also contributed to supporting the price of this stock.

The news that an important partner - Gotion - has signed an agreement to buy 15 million VinFast (VFS) shares at a price of 10 USD/share is also positive for the Vietnamese electric vehicle company. Gotion Inc. is a company that cooperates with VinES in the VINES-GOTION Lithium Battery Joint Venture Factory project in Vung Ang Economic Zone, Ky Anh Town, Ha Tinh Province. Gotion (headquartered in California, USA) is a subsidiary of Gotion High Tech (China's leading battery manufacturer).

Investors have placed high hopes on electric car companies in recent years. However, competition in this market has recently been fierce.

Since early 2023, the giant Tesla has launched a price war in the Chinese market. Meanwhile, many big names in the auto industry such as Ford, GM, BMW and VW have joined this field. Besides, there are startups such as Nikola, Lucid and NIO.

According to the Korea Times, in mid-June, three Korean corporations, including Samsung, SK and LG, will cooperate with Hyundai Motor Group to form an electric vehicle alliance. This alliance is expected to create products that combine the best values ​​of leading Korean companies and are ready to challenge competitors.

Vietnamnet.vn

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