VinFast, the automobile unit of Vietnam’s biggest conglomerate, has registered for an initial public offering in the US, where its plans for aggressive investment have earned a tweet of kudos from President Joe Biden.
The IPO filing to the Securities and Exchange Commission announced Thursday could put the Vingroup subsidiary on track to list shares by the end of the year. The size of the IPO is unclear, though earlier reports have said such an offering could raise up to USD 3 billion.
If successful, it would be the first major listing in the US for a Vietnamese company.
“The size and price range for the proposed offering have yet to be determined,” the business, founded by Pham Nhat Vuong, Vietnam’s richest man, said in a post on its website.
VinFast signed a preliminary deal last week in North Carolina to invest USD 2 billion to build a factory for producing electric cars, buses, and batteries.
Biden called the investment a win in his aim to attract clean manufacturing businesses, many of which have migrated to Vietnam.
“It’s the latest example of my economic strategy at work,” he said in a post on Twitter.
US Commerce Secretary Gina Raimondo also praised the move, saying, “We applaud VinFast’s investment [and] efforts to build the technology that will help us create jobs of the future.”
Construction of the North Carolina factory should begin this year and is expected to finish by July 2024. The plant’s initial capacity will be 150,000 units per year, VinFast has said.
The company has begun taking preorders globally for two electric sport utility vehicles with a goal to begin delivering them in the fourth quarter.