Vinfast inspires Vietnamese businesses to go global

"August 15, 2023 - A historical milestone of Vietnam's economy and finance" - economic expert Vu Dinh Anh proudly wrote on his personal Facebook page right after VinFast's brilliant debut on Nasdaq. Without commenting too much on the event, Mr. Vu Dinh Anh only briefly said that this is the most accurate answer to doubts about the capacity of Vietnamese enterprises in the international arena. If more enterprises look to VinFast to learn, Vietnam's economy will soon reach a higher level on the world stage.

Mr. Vu Dinh Anh is not exaggerating when calling this a historical milestone of Vietnam's economy and finance, because over the past two decades, many Vietnamese enterprises have dreamed of being listed and trading shares on foreign stock exchanges, but for many reasons, they have not been able to turn their dreams into reality. There was even a case where Vietnam Investment and Construction Joint Stock Company - Cavico Corp merged with an American company and listed its shares on the OTC.BB exchange with the stock code CVIC in April 2008. The OTC.BB exchange is also part of Nasdaq, similar to the UPCoM registration exchange under the Hanoi Stock Exchange, but it is not yet an official listing exchange of Nasdaq. By September 2009, Cavico shares were officially listed on the US Nasdaq exchange with the code CAVO. But after less than two years, Cavico had to leave the Nasdaq exchange due to violations of information disclosure requirements.

Ms. Le Thi Thu Thuy, Global CEO of VinFast at the listing ceremony of VFS shares on the US stock exchange

Therefore, when revealing its plan to list on the US stock exchange in mid-2021, when it was only born for nearly 4 years, being a young company in the automobile market, VinFast received more skepticism than expectations. However, VinFast has not only written history but also made its mark with a lightning-fast journey - realizing the dream of listing on the foreign exchange at the official brain of the world's financial market - after only about 2 years since announcing the plan.

Speaking at VinFast's IPO event, Ms. Le Thi Thu Thuy, Global CEO of VinFast, could not hide her emotions: "Becoming a listed company in the US is an important milestone in VinFast's global development journey. This is not simply a transaction on the stock market, but also a recognition of our strong belief in our vision and potential, as well as our commitment to making smart, safe and environmentally friendly electric vehicles more accessible to everyone. I acknowledge the great collaboration of Black Spade, along with VinFast's important partners, for a journey together to break all limits, as well as continue towards a green future for us and future generations."

In the first trading session, VinFast's (VFS) stock price increased sharply to $22, more than double the $10 price set in the merger agreement with Black Spade. At the end of the session, VFS shares were pegged at $37.06, bringing the capitalization of the Vietnamese electric car manufacturer to more than $85 billion, higher than all US electric car startups combined and surpassing Ford Motor (F), GM, Stellantis (STLA), BMW (Germany), Volkswagen (VOW - Germany), Mercedes-Benz Group (MBG - Germany) and many other car manufacturers. Foreign press assessed this as a surprising number.

Ms. Le Thi Thu Thuy said that she herself was surprised, not expecting the stock to rise like that. But what VinFast people care about more is the support for VFS, the image of many people eagerly watching VFS listed. That is the motivation for them to realize their aspiration to position the Vietnamese car brand in the world market. The aspiration that VinFast set out from the beginning, all strategies are not only oriented towards profit.

From the beginning, Vinfast has invested in a factory system compatible with electric vehicles to ensure good and stable product quality.

Vinfast's leaders once shared that becoming a 100% electric car company has been VinFast's vision since its inception. It is a vision of a sustainable future for people and the planet through green, clean and safe mobility. The Vietnamese car brand also aspires to reach even higher achievements - becoming one of the leading electric car companies in the world. Therefore, from the beginning, the company has invested in a factory system compatible with electric cars to ensure good and stable product quality. VinFast's leaders are confident that they have many advantages thanks to starting from zero, so they are not bound by old products and thinking. At the same time, electric cars are an irreversible trend, so this is the right time to transform and gain a competitive advantage.

On the official "ringing the bell" day on the Nasdaq floor, Ms. Le Thi Thu Thuy once again affirmed that this is not only an important day for VinFast, but also an important milestone in the effort to build a greener future for everyone through sustainable mobility.

"Transportation is a key factor in human achievements because it brings opportunities to individuals as well as to society. However, the revolutions in the mobility industry also create many challenges for our planet, threatening the balance between the living environment and human development. Now, we have a mission to bring everyone access to green means of transport at reasonable prices, aiming towards sustainable development on a global scale" - Ms. Le Thi Thu Thuy emphasized.

Supporting VinFast's approach, Associate Professor Dr. Tran Dinh Thien - former Director of the Vietnam Economic Institute, affirmed that this is an "extremely standard" choice in terms of strategy. Vietnam's automobile industry, compared to the world, is far behind. VinFast, newly established, did not choose to follow and compete in the same segment, but with the consistent declaration of "pioneering", this enterprise also "attacked" the newest market, the most advanced technology of mankind.

Looking at the world, VinFast's choice of green development is in line with the green trend of the times, which means it is supported by the world and quickly accepted. The support of the state of North Carolina in both policy and the largest economic incentive package in the history of this state for the construction of the VinFast electric vehicle factory is the clearest proof that VinFast is on the right track. In addition, for Vietnam, energy technology cannot be out of the trend and is changing very quickly to renewable energy, new energy production (hydrogen, green ammonia...). Electric cars replacing gasoline cars are the fastest product to widely apply this energy source. These two trends combined will create extremely large development benefits. Obviously, VinFast has foreseen this trend and has formed an alliance with the world's leading battery manufacturers to be ready to implement.

"This is the era of crazy ideas, of long-term visionary strategies, VinFast has gone very well in terms of strategy. The only thing left is quality implementation. It is necessary to understand that being a pioneer means hardships and harsh challenges. Enterprises have had to prepare many conditions for this battle, not just the illusion of going into battle with only a belief in victory. With the achievements up to today, we must believe in the capacity of enterprises. VinFast's initial victories on the US stock market have affirmed that Vietnam is a "player" in the highest-level market that only a few global automakers have penetrated. That not only creates a position for enterprises but also builds an image for Vietnam. If there is more support from the Vietnamese nation, the Vietnamese people, and the Vietnamese government, there is no reason why VinFast cannot win" - Associate Professor, Dr. Tran Dinh Thien emphasized.

Right after the first trading session of VinFast shares on the Nasdaq, from Paris (France), Professor Nguyen Duc Khuong - Chairman of AVSE Global (Vietnam Science and Expert Organization Global), Director of Resources and Research at IPAG Business School (France) - shared with Thanh Nien : Nasdaq is a market with very high standards for listing, not easy to enter. VinFast being listed and selected into the Nasdaq Global Select Market Composite index demonstrates the capacity of the company and its consulting team. This is a great success, very proud for Vingroup in particular and Vietnam in general. It also opens the way for other Vietnamese enterprises in their aspirations to reach out globally, to access the international capital market. VinFast itself is a known brand, contributing to bringing Vietnam's reputation to the world.

VinFast's first batch of electric cars shipped to the US

Dr. Vo Tri Thanh, Director of the Institute for Brand Strategy and Competition Research, also commented that this is the starting event for the process of enterprises reaching out to the big sea. This is a welcome event and has positive significance for the Vietnamese business community in particular as well as the national brand. To be listed on a high-end capital market like Nasdaq requires enterprises to be highly transparent and reputable. In particular, the electric car sector is very competitive because this market requires enterprises not only to create cars but also to build a supporting ecosystem. At the same time, VinFast will certainly also face fierce competition with very strong corporations, with long-standing brands, even surpassing them in research and technology.

"The number of domestic enterprises with brands that the world knows is still small. Bringing a brand to the world is difficult, maintaining a brand is even more difficult. It is a process that requires enterprises to constantly innovate, develop, make quality products, and serve the diverse needs of consumers. Through the brands of many Vietnamese enterprises, Vietnam's national brand has gradually been upgraded in recent times. Especially through the story of VinFast, the Vietnamese brand will become stronger, its value will increase faster on the rankings of world organizations" - Dr. Vo Tri Thanh acknowledged.

Associate Professor, Dr. Tran Dinh Thien commented: It is easy to see that Vingroup is devoting all its efforts to VinFast with the desire to bring Vietnam to the world by introducing a product, a technology of the highest level that Vietnamese people have mastered; by connecting with the world; sharing development benefits with the world. Thereby, bringing the world to Vietnam. International recognition of VinFast marks the maturity of a Vietnamese enterprise, and is also an example to affirm that Vietnamese enterprises are fully capable of approaching the world market quickly and effectively. This is a very strong encouragement for Vietnamese enterprises.

VinFast automobile factory in Hai Phong

Ba Hung

"The special successes in the early days of listing on the US stock exchange brought great encouragement to VinFast and Vietnam. However, the battle is still very fierce. The market is cruel, nothing can confirm that today's success means that next year, the year after that, it will continue to be favorable. Therefore, we must also look at it in the spirit of a Vietnamese enterprise doing meaningful work for the country so that the support for VinFast must be viewed in terms of supporting the national brand and national image. We must believe in the way of doing things, believe in the efforts of the enterprise for the country" - this economic expert emphasized.

Thanhnien.vn