Vietnam is at the forefront of Southeast Asian countries in electric vehicle technology. They are ready to compete with the world’s automotive giants to compete in the electric vehicle market of Asia and the United States.
To meet this goal, VinFast is moving its legal and financial headquarters to Singapore and is preparing to go public and manufacture its first cars for the US and European markets. This was explained by the CEO of VinFast, Le Thi Thu Thuy, to Reuters, Wednesday 24 May.
VinFast will start building the VF8 sports vehicle (SUV) next week, with production of its own EV battery in August. Le Thi Thu Thuy, they will also build a factory in the US worth 4 billion US dollars by the end of this summer.
Vingroup chairman Pham Nhat Vuong said earlier this month. VinFast has submitted an initial public offering (IPO) in the United States through its Singapore-based holding company – although market conditions may push the deal through to 2023.
Thuy declined to comment further on the IPO, but said the company’s EV expansion plans were not dependent on listings. “Like other large companies, we always consider all potential financing transactions,” said Thuy.
The CEO said he plans to spend more time in Singapore, where VinFast bought a building, turning its parent company into an operations hub that will include offices and housing for staff and executives.
“We feel Singapore is a jurisdiction that will give investors more confidence,” said Thuy. “We are putting ourselves in the shoes of investors.”
Although Thuy did not elaborate, Singapore is widely seen as the most developed market in Southeast Asia, with a strong regulatory framework, a mature financial services sector and access to arbitration.
Parent Vingroup is Vietnam’s largest listed company by market capitalization, with businesses in retail, real estate and resorts. It created VinFast in 2019 to build conventional gasoline-powered cars before switching exclusively to EVs in 2021.
Although the market is teeming with established automakers competing with startups, Vingroup said in May still that it saw a global EV shortage it saw as a “golden opportunity”.
With a local line-up of just one small EV, the e34, VinFast has invested heavily in developing models for overseas.
Alongside its VF8, they have also developed a larger VF9, although that was delayed by about a month due to the impact of the COVID-19 containment measures in Shanghai on suppliers.