VinFast, the leading Vietnamese electric vehicle (EV) manufacturer, has made a significant move toward global expansion with a new business combination agreement. The company has secured a deal that will provide ample cash for its rapid growth plans, allowing it to further solidify its presence in the international market. VinFast's claims that its commitment to creating a ‘green future for everyone', has been a driving force behind its success thus far.
Pham Nhat Vuong was Vietnam’s first billionaire and, in 2017, he founded the first major Vietnamese car brand by launching VinFast. The company is heavily focused on electric vehicles – with its own designs on everything from scooters to saloon cars. We first met with VinFast over in Germany back in 2022 when they presented the VF8 and VF9 to European customers for the first time. In person, these cars are certainly impressive. External styling on the VF8 has been augmented by Pininfarina, while the powertrain is taken care of by a pair of motors capable of getting to to 60mph in just over 5 seconds – and the 87kWh battery pack (on the extended range model) should get you around 290 miles closer to your destination before needing a charge (that will be less than 190 miles with the basic battery).
VinFast has announced a partnership with Black Spade Acquisition Co (BSAQ), a Special Purpose Acquisition Company listed on the New York Stock Exchange (NYSE). The business combination agreement will result in VinFast having an equity value of over US$23 billion and being listed in the United States.
The completion of this agreement is expected in the second half of 2023, pending regulatory and shareholder approvals, as well as customary closing conditions. Following the transaction, existing shareholders of VinFast will retain approximately 99% ownership of the combined company, highlighting the continued commitment and involvement of the original stakeholders. These cars have been described as an ‘overly soft ride' by early American test drivers – which means VinFast may need to go back to the suspension drawing board before launching into Europe.
Thuy Le, Global CEO of VinFast Auto, expressed her enthusiasm about the partnership with Black Spade and the company's listing in the U.S. market. She emphasised that VinFast has already demonstrated its ability to expand quickly into international markets. This partnership and capital raising avenue will provide VinFast with the necessary resources to pursue its global ambitions effectively. That all adds up to ‘rapid expansion’.
Dennis Tam, Chairman and Co-CEO of Black Spade Acquisition Co, acknowledged VinFast's impressive execution capabilities – especially the operation of its new 300,000 unit-a-year line. Tam said that his company was attracted by VinFast’s ‘beautifully designed, high-quality EV portfolio’. BSAC is keen to support Vingroup (one of Vietnam's largest conglomerates), and the investor believes that there is huge potential for VinFast in the EV market.
VinFast was established in 2017 with the vision of spearheading the global smart electric vehicle revolution. The company has been manufacturing and exporting a comprehensive range of EVs, including SUVs, scooters, and buses, across Vietnam and North America. Its expansion into Europe is also on the horizon. VinFast operates a state-of-the-art automotive manufacturing complex in Hai Phong, characterized by up to 90% manufacturing automation. In its initial phase, the facility has a remarkable annual production capacity of up to 300,000 units. In a nod to history, Hai Phong was the first Vietnamese city to install and run off a modern electric grid.
As part of its commitment to sustainability, VinFast transitioned into a fully electric vehicle manufacturer in 2022. The company has already introduced four EV models, namely VF e34, VF 8, VF 9, and VF 5, to customers in Vietnam.
Black Spade Capital focuses on cross-border investments and continually seeks new investment projects and opportunities to expand its global portfolio. The company's collaboration with VinFast aligns with its investment strategy and provides an opportunity to participate in the booming EV market.
The feeling in the market right now, is that investment in the EV industry will lead directly to large scale profits as the planet rolls toward carbon neutrality in the coming decades.
Bringing in a completely unknown brand into a hugely competitive/brand-loyal market like Europe could mean that VinFast needs to be more price competitive than it would have liked – but more competition is always a good thing for consumers.
You can find out more from VinFast using this link.