The chairman of Vingroup stated that the initial public offering (IPO) for the company VinFast may be postponed until next year due to market uncertainty.
Previously, VinFast planned to release their initial shares in the fourth quarter of this year.
However, instead of conducting an IPO this year, Vingroup Chairman Pham Nhat Vuong actually said that the Vietnamese conglomerate company was prioritizing an aggressive sales strategy.
“We are eyeing the IPO in the fourth quarter, but there is a lot of market uncertainty going on right now… If necessary, we can postpone it until next year,” Vuong said.
“IPOs are not just for fundraising. It’s also about marketing and claiming VinFast’s position globally,” he said.
Singapore-based parent company VinFast has filed for an IPO with US securities regulators, and is preparing to invest $4 billion to build a factory in the United States.
Vuong also said at the meeting that the company faced obstacles in getting parts from China.
“The chip factory in Shanghai is closed. Therefore the supply of chips has been disrupted and it’s the same story for other parts,” said Vuong.
Vuong said VinFast wants to sell 750,000 cars by 2026, with 150,000 cars to be produced in North Carolina and the rest from factories in Vietnam.
