VinFast bounces back after 9 sessions of decline

Opening the official trading session on September 12 on the US Nasdaq stock exchange (September 12 evening Vietnam time), VinFast Auto (VFS) shares of billionaire Pham Nhat Vuong increased again.

As of 9:55 p.m. on September 12 (Vietnam time), VFS shares increased by nearly 5.7% compared to the previous session, to 17.51 USD/share. However, this price is still low compared to the initial price of more than 37 USD/share on August 15.

VinFast's capitalization is now over 40 billion USD.

Previously, VinFast shares had jumped to 93 USD/share in the trading session on August 28. VinFast's capitalization at that time reached nearly 210 billion USD.

*VinFast shares rebound after 9 sessions of decline.*

With a current market capitalization of 40 billion USD, VinFast has recovered to 14th place in the world's car market capitalization rankings, although it is still behind most of the world's famous car manufacturers such as BMW of Germany or Honda of Japan, and above some long-standing car manufacturers such as Hyundai and Kia.

Specifically, VinFast is currently behind the following car companies: Tesla (864 billion USD, as of the beginning of the session on September 12) of billionaire Elon Musk, Toyota of Japan (245 billion USD); China's largest electric car company BYD (98.7 billion USD), German supercar company Porsche (98.7 billion USD), Mercedes-Benz (77.4 billion USD), BMW (68.8 billion USD), Volkswagen (63.5 billion USD), Stellantis (59.4 billion USD), Honda (56 billion USD), Italian car company Ferrari (54.7 billion USD), General Motors (45.5 billion USD) and Li Auto (42.3 billion USD).

VinFast is an automobile company founded in 2017 and will officially switch to electric vehicles from 2022. VinFast estimates that it will deliver 50,000 electric cars to customers in 2023. This is the first electric car company in Vietnam and the ASEAN region to list its shares on the US stock exchange.

VinFast shares rebounded after a sharp decline earlier and were in the spotlight after US President Joe Biden mentioned the company's $4 billion investment in the US during his visit to Vietnam.

Mr. Biden gave the example of a Vietnamese company that in 2022 signed a $4 billion deal to build an electric car and battery factory in the US state of Northern California, creating 7,000 jobs.

Previously, in March 2022, VinFast and the government of North Carolina (USA) announced the signing of a memorandum of understanding on the construction of VinFast's first manufacturing plant in the North American market. The project has an investment of up to 2 billion USD in phase 1 and will create thousands of jobs for local workers.

Investors also pay attention to Vietnamese businesses when Vietnam and the US upgrade their relationship to a comprehensive strategic partnership.

According to Asia Nikkei, VinFast is also expected to record increased sales and soon turn a profit after partnering with technology motorbike taxi company Be Group to sell electric motorbikes. The total annual production capacity of VinFast’s Hai Phong factory for electric motorbikes is estimated at about 500,000 units. The agreement between VinFast and Be may be expanded to electric cars in the future.