VinFast’s listing on Nasdaq marked a bold but risky milestone for Vietnam’s electric carmaker. After abandoning a traditional IPO, the company went public via a SPAC merger with Black Spade, valuing it at US$27 billion—one of the largest SPAC deals in history. Yet over 86% of Black Spade investors redeemed their shares before the merger, leaving VinFast with little fresh capital.
Backed by over US$9.7 billion in funding from parent company Vingroup and external lenders, VinFast continues to burn cash as it expands into the U.S. and Europe. Despite delivering 9,500 EVs in Q2 2023, revenues remain weak, and the company is burdened with US$7.5 billion in debt. CEO Le Thi Thu Thuy says profitability could come “within a few years” as production scales up.
VinFast’s North Carolina plant aims to create thousands of local jobs, but the company faces fierce competition in a crowded EV market and tighter global credit conditions. Analysts agree: the Nasdaq debut gives VinFast visibility—but the path to sustainable success will depend on execution, market acceptance, and continued access to capital.
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This article is a condensed and translated summary (original in Vietnamese, VN) of a feature published in the October 2023 issue of Bloomberg Businessweek Vietnam.