Vietnam's Electric Vehicle (EV) maker VinFast has now officially filed for an Initial Public Offering (IPO) in New York, according to Nikkei Asia.
(Photo : by APU GOMES/AFP via Getty Images)
The VF-8 electric vehicle from VinFast, a Vietnamese automaker producing electric cars and SUV's, is displayed at their showroom in Santa Monica, California, on September 13, 2022.
Should this be successful, the company would be the only Vietnamese company listed in the US. Recently, the EV maker shipped its EVs to the country and now aims to list them on the NASDAQ exchange with the symbol VFS.
Not Easy!
It is known that EV makers in Asia may find it challenging to break into the US market, considering the number of reputable EV brands already rolling out. Still, VinFast has what it takes to compete.
Of course, this didn't come easy, especially since Vietnam has strict capital controls.
In the US, you can get your VinFast EV at a starting price of $42,000, plus a battery subscription. They also have plans to build a car plant in North Carolina and make use of US government subsidies for EV buyers as a selling point. However, with its current lineup, it doesn't qualify under the subsidies' local-input rules.
Also read: VinFast Plans to Become a Maker EV Hub, a Thousand Vietnamese EVS Will Arrive in the US
Breaking Into the US EV Market
The US EV market is not easy to crack, but VinFast is not the only Asian automaker that is positioning itself to make its mark. For a company like VinFast, the journey will not be that easy. Their success is truly up to the key figures in the US government.
Many Asian car makers can break into the US market in the past. For example, Hyundai and Kia were able to gain market share in the US car market in the early 2000s. These two car makers captured US car buyers' attention by offering affordable vehicles with reliable quality.
However, for VinFast, a portion of its success will be dependent on the positive relationship between its parent firm, Vingroup, and the Vietnamese government. VinFast is also requesting that the Vietnamese government liberalize the market. The government has also given the company a hand by cutting its import tariffs for vehicles.
The good news for VinFast, there are already some Asian makers that have been able to gain market share in the US. However, this will not come easy. Right at this moment, there are still many car manufacturers in the US who are offering EVs in the country. This is why VinFast will need to come up with a competitive strategy to win over US buyers' hearts.
If VinFast successfully launches its IPO, the EV maker will have a greater chance of getting a bigger presence in the US.
Related article: Tesla Production in China Hits Record 100K EVs but Stock Slumped After News of a Potential 20% Drop in Output for December
