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Vietnamese EV Maker VinFast Files For $2 Billion US IPO

VinFast is getting the ball rolling on a US IPO just months after delivering its first EVs in Vietnam. Could this be the next EV boom stock, or is VinFast running before it can walk?

Vietnamese automaker VinFast has filed the draft for an initial public offering in the US which, as Bloomberg reports, could bring the burgeoning manufacturer as much as $2 billion. The exact size of the offering is not currently public knowledge but we do know that it's likely to take place in the second half of 2022. The announcement comes hot on the heels of another in which VinFast pledged up to $6.5 billion worth of investment in a North Carolina facility to build the VF8 and VF9 BEV SUVs as well as electric buses, batteries, and other EV-related components.

Up To Speed On VinFast
Founded in 2017 as the automotive arm of the Vingroup conglomerate, VinFast is Vietnam's largest car company. While it currently sells gas-powered vehicles based on previous generations of the BMW 5 Series and X5, VinFast plans to go all-electric by the end of 2022. Plans for global expansion are already well underway with the North Carolina factory under construction and deliveries to the US, Canada, France, Germany, and the Netherlands targeted for the end of 2022. North American EVs will be shipped from Vietnam until the North Carolina facility comes online in 2024. VinFast commenced EV deliveries in its home market at the end of 2021.

Image showing examples of the VinFast VF8 and VF9 parked in front of some mountains

VinFast will launch in the US with a pair of BEV SUVs: the VF8 and VF9. The former comes with a choice of single or dual motors and an estimated range of 300 miles, while the latter has twin e-motors, seating for seven, and a projected 420 mile range. VinFast hopes to establish itself in buyers' minds with reasonable pricing and a higher level of standard equipment than the more widely-known brands it wants to compete with.

VinFast announced the filing in a press release on its website earlier today.

"VinFast Trading & Investment Pte. Ltd., a Singapore-incorporated subsidiary of Vingroup Joint Stock Company, today announced that it has confidentially submitted a draft registration statement on Form F-1 to the Securities and Exchange Commission (the “SEC”) relating to the proposed initial public offering of its ordinary shares. The size and price range for the proposed offering have yet to be determined. The initial public offering is expected to take place after the SEC completes its review process, subject to market and other conditions."

Buzz around VinFast continues to grow with President Biden tweeting about the new VinFast factory as an example of the administration's economic strategy working as designed. A statement was also released on the White House website, which you can read in full here.

If Bloomberg's $2 billion figure proves correct VinFast's IPO will be the largest by any Vietnamese company. The current record holder is another Vingroup company: commercial real estate developer Vinhomes, with a $1.4 billion IPO back in 2018. So will VinFast stock surge or disappoint after the planned IPO? Here's how we see all the pieces of the puzzle.

VinFast is a young company, but it's backed by a giant in Vingroup. It lacks the proprietary technology of the Lucids of the world, but it's targeting daily drivers on a reasonable budget so its vehicles don't need to reinvent the electric wheel. Giving out a higher level of standard equipment worked for Japanese and Korean automakers when they launched in America, and could well do the same for this Vietnamese company.

Finally, with Rivian and Lucid stock prices both cooled to fractions of their launch values, it seems that the hysteria around new EV stock offerings has abated somewhat with parts shortages and logistical problems further complicating matters. Whether this results in a slow and steady rise or a lack of investor interest in VinFast remains to be seen.

Related: Stellantis, LG Set To Build $4.1 Billion EV Battery Plant In Canada

Images by VinFast licensed by CC BY 2.0.

James Walker is an Automotive Journalist at Torque News focusing on Lucid Motors. If it's got wheels he's interested, and he's looking forward to seeing what kind of cars the EV revolution brings us. Whether it's fast, slow, new, or old, James wants to have a look around it and share it in print and on video, ideally with some twisty roads involved. You can connect with James on Twitter, Instagram, and LinkedIn.