In the heart of the rapidly evolving EV market in the United States, the Vietnamese automaker is confidently carving out its niche.
Vietnamese Electric Vehicle (EV) manufacturer, VinFast is set to debut on the tech-focused Nasdaq Composite (INDEXNASDAQ: .IXIC) this morning in New York. This significant step follows the successful completion of its merger with the US-listed Special Purpose Acquisition Company (SPAC), Black Spade.
CEO Le Thi Thu Thuy articulated the magnitude of VinFast’s achievement in a recent report, stating:
“It’s a big milestone for us to be listed in the US. The listing is going to open access to the capital markets for us in the future.”
VinFast’s Journey to Nasdaq
VinFast’s journey to Nasdaq is a remarkable tale of ambition, innovation, and the convergence of global markets. Founded in 2017 as part of the Vingroup conglomerate, VinFast’s mission was to put Vietnam on the map as a serious contender in the automotive industry, focusing initially on traditional gasoline vehicles.
However, it did not take long for the company to pivot towards EVs, recognizing the critical role they play in addressing environmental concerns and the global shift toward sustainable transportation.
By 2021, VinFast had not only produced a line of electric automobiles but also electric buses and scooters, demonstrating its versatility and commitment to green mobility. This daring path caught the interest of investors, setting the road for its historic merger with Black Spade Acquisition.
The allure of SPACs lies in their ability to expedite Initial Public Offering (IPO) processes, offering companies like VinFast an efficient way to access capital markets. VinFast stated in a recent joint statement that its merger with Black Spade is valued at approximately $23 billion.
The merger not only elevated VinFast’s financial position but also integrated Black Spade as a wholly-owned subsidiary of the EV maker. Consequently, Black Spade is anticipated to delist from the New York Stock Exchange, streamlining VinFast’s presence on Nasdaq.
VinFast Displays Competitive Edge in the US EV Market
In the heart of the rapidly evolving EV market in the United States, the Vietnamese automaker is confidently carving out its niche.
Faced with giants such as Tesla Inc (NASDAQ: TSLA) and BYD VinFast’s CEO highlighted the company’s strategy, which includes “offering premium quality products at affordable pricing with excellent after-sales service”. This strategy is the foundation of the company’s success, allowing it to present its goods as high-quality alternatives to other market competitors.
A notable example of VinFast’s pricing strategy is evident in its 5-seater VF 8 model, starting from $46,000, closely competing with the basic Tesla 5-seater Model Y priced from $47,740.
While Tesla benefits from federal tax credits for its vehicles, VinFast’s vehicles currently do not qualify for these incentives as they are not manufactured in the US. Notably, VinFast is constructing a manufacturing facility in North Carolina in order to enhance its foothold in the US.
With a projected annual capacity of up to 150,000 vehicles, the factory is poised to become a crucial asset in VinFast’s expansion strategy.
Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.
