VinFast’s initial public offering (IPO) in the United States could be delayed until next year because of ongoing uncertainty in the market.
While speaking at the company’s annual general meeting, Vingroup Chairman Pham Nhat Vuong said the IPO is currently scheduled for the fourth quarter of this year but acknowledged it might be pushed back. To quell fears among potential investors, he noted that the IPO will go ahead, “no matter how uncertain the market.”
“We are eyeing a Q4 IPO, but there are lots of ongoing market uncertainties now… If necessary we may delay it to next year,” Vuong said. “The IPO is not just for fundraising. It’s also about marketing and claiming VinFast’s position globally.”
VinFast has big plans in the United States. The most significant of these plans is the establishment of a large assembly plant in Chatham County, North Carolina which was confirmed back in late March. The Vietnamese car manufacturer will invest $4 billion into the U.S. and will create 7,500 jobs at the factory. The current aim is for production to start in the fourth quarter of 2024.
Before VinFast starts producing the VF 8 and VF 9 SUVs in the U.S., it will export them from its existing plant in Vietnam and commence sales here in the States later this year. Vuong told Reuters that VinFast hopes to sell 750,000 vehicles in 2026 of which 150,000 will come from its North Carolina plant while the others will be from its Vietnam factory.
While speaking at the annual general meeting, Vuong added that the car manufacturer faces some supply issues.
“Chip factories in Shanghai are closed – therefore chip supplies have been disrupted and the same story for other parts,” he said.