VinFast likely to postpone US listing again on “market uncertainty”
Vietnam’s domestic car maker VinFast once again is set to postpone its much-awaited initial public offering (IPO) in the US, likely until next year due to “market uncertainty,” Pham Nhat Vuong, chairman of the parent company Vingroup, Vietnam’s largest conglomerate, said on May 11, according to a Reuters report.
The IPO is currently scheduled for the fourth quarter of this year after it was pushed back from an initial deadline in the second or third quarter 2021.
“We are eyeing a fourth-quarter IPO, but there are lots of ongoing market uncertainties now… If necessary we may delay it to next year,” the news agency cited Vuong as saying at the company’s annual general meeting.
Plans for a $4-billion car factory in the US
VinFast’s Singapore-based holding company had filed for an IPO with the US securities regulators as the company prepares a $4-billion investment to build a car factory in the US.
However, Vuong told the meeting that Vingroup was prioritising the production expansion of VinFast and gave an aggressive car sales target, even though the car maker at the same time is facing obstacles obtaining parts – particularly computer chips – from China as main factories in Shanghai are closed due to continued Covid-19 lockdowns in the country.
But Vuong sought to reassure shareholders the startup would go ahead with the IPO “no matter how uncertain the market”.
Sales target of 750,000 cars by 2026
VinFast has promised to create 7,500 jobs at its planned plant in North Carolina, US, where it will build the battery-powered VF8 and VF9 sport utility vehicles. The company has said it plans to begin construction of the plant as soon as permits are granted with a goal of starting production by 2024.
Vuong said that VinFast aims to sell 750,000 cars in 2026, with 150,000 cars to be produced in North Carolina and the rest in its Vietnam factory.
[caption id="attachment_38452" align="alignleft" width="300"] VinFast's flagship electric SUV VF9[/caption] Vietnam’s domestic car maker VinFast once again is set to postpone its much-awaited initial public offering (IPO) in the US, likely until next year due to “market uncertainty,” Pham Nhat Vuong, chairman of the parent company Vingroup, Vietnam’s largest conglomerate, said on May 11, according to a Reuters report. The IPO is currently scheduled for the fourth quarter of this year after it was pushed back from an initial deadline in the second or third quarter 2021. “We are eyeing a fourth-quarter IPO, but there are lots of ongoing market uncertainties...
Vietnam’s domestic car maker VinFast once again is set to postpone its much-awaited initial public offering (IPO) in the US, likely until next year due to “market uncertainty,” Pham Nhat Vuong, chairman of the parent company Vingroup, Vietnam’s largest conglomerate, said on May 11, according to a Reuters report.
The IPO is currently scheduled for the fourth quarter of this year after it was pushed back from an initial deadline in the second or third quarter 2021.
“We are eyeing a fourth-quarter IPO, but there are lots of ongoing market uncertainties now… If necessary we may delay it to next year,” the news agency cited Vuong as saying at the company’s annual general meeting.
Plans for a $4-billion car factory in the US
VinFast’s Singapore-based holding company had filed for an IPO with the US securities regulators as the company prepares a $4-billion investment to build a car factory in the US.
However, Vuong told the meeting that Vingroup was prioritising the production expansion of VinFast and gave an aggressive car sales target, even though the car maker at the same time is facing obstacles obtaining parts – particularly computer chips – from China as main factories in Shanghai are closed due to continued Covid-19 lockdowns in the country.
But Vuong sought to reassure shareholders the startup would go ahead with the IPO “no matter how uncertain the market”.
Sales target of 750,000 cars by 2026
VinFast has promised to create 7,500 jobs at its planned plant in North Carolina, US, where it will build the battery-powered VF8 and VF9 sport utility vehicles. The company has said it plans to begin construction of the plant as soon as permits are granted with a goal of starting production by 2024.
Vuong said that VinFast aims to sell 750,000 cars in 2026, with 150,000 cars to be produced in North Carolina and the rest in its Vietnam factory.
