The US electric vehicle (EV) market is shaping up with a projected 2023 value of around US$70.1bn. This all thanks to the home of the pioneering organisation Tesla, but also some of the leading traditional manufacturers, such as Ford and General Motors, which have steadily increased their offerings and value to the industry.
However, electric-native businesses are becoming increasingly competitive, considering the effects of Chinese automakers and further brands appearing across the Asia Pacific region, of which one of these is VinFast.
Born in Vietnam, the EV only company was founded by Pham Nhat Vuong, the country’s richest man and now one of the most important men in the battery-electric car sector thanks to VinFast’s recent activities on the stock market. The company seems to have acquired a significant level of interest following previous losses of US$2.1bn and is now valued higher than both Ford and GM through trading on the NASDAQ on the 15th August 2023.
During the first day of trading on the open stock market, VinFast received incredible interest and, as a result, the company is now in good stead to challenge the US automotive players and acquire its share of the market.
Speaking of shares, the company’s leader and first dollar billionaire Vuong holds 99% of VinFasts equity, meaning his value also increased by US$39bn during stock trading.
Now the company will begin to develop itself in the US with a North Carolina production plant already in the works with an expected annual manufacturing rate of 150,000 cars. The company’s CEO Le Thi Thu Thuy broke ground at the site with the state’s Governor Roy Cooper, which makes a historical moment for the country and the brand.
Why so much interest in EVs from VinFast?
Unlike other pure-play manufacturers attempting to build funds and penetrate critical markets, VinFast is unencumbered by high labour costs—or at least, this is what is expected from the Vietnamese business.
Nevertheless, attention will be focused on the company’s performance as it evolves in this new space where some businesses—namely fleet manufacturers—have struggled to acquire funding or meet production deadlines. The VinFast brand appeals to a similar nature in the US, which is the demand for premium-grade EVs.
Founded in 2017, VinFast prides itself on developing state-of-the-art automotive manufacturing at the North Carolina site and, if it’s anything like production in Hai Phong, Vietnam, the facility will leverage highly automated systems to build its cars.
Not only will this project create thousands of jobs and contribute to North Carolina’s economic development, but VinFast’s electric vehicles produced here will also bring additional economic benefits to consumers. We also look forward to contributing to the development of the North Carolina community – our second home – during the production and business operation here,” said the company’s CEO at the groundbreaking event.
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