VinFast’s market value rises; more than Ford and GM?
Vietnamese electric vehicle (EV) maker, VinFast’s market value in the share market has skyrocketed past Ford and General Motors (GM) on its first trading day.
Shares in the company, which has yet to profit, closed past $37 (£29) each in their New York debut.
That stands at VinFast’s market value of $85bn, much higher than Ford’s $48bn and GM’s $46bn. It arrives as motor industry giants and newer manufacturers fight for a slice of the thriving EV market.
The listing added about $39bn to the wealth of VinFast’s chairman and founder, Pham Nhat Vuong, who was already Vietnam’s wealthiest man. Regulatory filings show he owns 99% of the company’s outstanding shares, mainly through Vietnam’s largest empire, Vingroup JSC.
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That restricts the number of shares open for other investors to trade, which can lead to effective price swings. Trading in VinFast was relatively slim on Tuesday, with about $185m value of its shares changing hands.
“Investors are continuing to believe that the future is in electric and that a low-cost East Asian country will emerge as a competitor in the US,” stated Bill Russo, Founder and CEO of Shanghai-based Automobility.
“The markets believe that given geopolitics, Vietnam, not China will be that country.”
