VinFast plans to increase free shares ratio to 10-20%

According to Donghai

Investing.com – VinFast (NASDAQ: ) aims to increase the proportion of freely transferable shares to 10-20% by the end of 2024, Reuters reports. Increasing the proportion of freely transferable shares could help reduce volatility in the VFS market. When listed on the stock exchange in August, VFS shares rose more than 255%, giving it a market capitalization of $85 billion. Currently, VinFast’s capitalization is close to $16 billion.

Sponsored by Tesla (Nasdaq: ) and with participation from Chinese companies such as BYD (Hong Kong: ), VinFast enters the electric vehicle market amid intensifying price competition.

In the first three quarters of 2023, VinFast sold more than 21,000 electric vehicles and had a net loss of US$1.73 billion.

During the CES 2024 event, Vietnamese automaker VinFast launched the new VF Wild electric pickup truck, with deliveries expected to begin in 2026.

The company said it plans to launch the VF 3 mini electric SUV globally instead of limiting it to the Vietnamese market as originally planned. Deliveries of the mini-SUV to U.S. customers are expected to begin early next year.

Last week, VinFast announced plans to set up a battery and manufacturing facility in India. The company also plans to expand into additional markets in the Middle East, Latin America and Asia, including Indonesia.

Also last week, VinFast made senior personnel changes, with Ms Le Thi Thu Thuy and Mr Pham Nhat Vuong swapping positions. Chairman Pham Nhat Vuong will directly manage the company as CEO, while Ms. Thuy will serve as chairman.

Ms Thuy said the move allowed her to focus on raising growth capital. “This year, I need to focus on raising money for VinFast,” she told Reuters.

“Furthermore, we need to convey the right story about VinFast to everyone,” the chairwoman added.

Mr Vuong said there was a perception that a Vietnamese company making electric cars might not have the best technology and he wanted to change that perception.

VinFast’s appearance at CES, along with the company’s new announcements, illustrate the Vietnamese automaker’s ambitions in the global electric vehicle market. VF Wild and VF 3 and plans to expand production and markets are important steps in this strategy.

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