VinFast Auto Ltd., a Vietnamese EV company, had gone public and started trading on Nasdaq, after which its shares soared upwards at $37 per share, reaching a market cap of a staggering $85 billion. With this recent milestone, the EV maker continues to pave the road toward sustainable transportation.
A member of Vingroup JSC, VinFast is Vietnam’s leading EV maker with the mission to make the future green. The company manufactures and exports electric SUVs, buses, and scooters in its home country and the U.S.
VinFast Goes Public (IPO)
Trading under the ticker symbol of “VFS”, VinFast went public after it acquired Black Spade Acquisition Co. The latter will provide VinFast an ongoing business advisory for the brand’s growth and help with direct investor engagement.
Their merger will be led by Global CEO Le Thi Thu Thuy, also known as Madame Thuy Le. Remarking on the company’s massive success, Madame Thuy Le commented saying that:
“VinFast has accelerated the global EV revolution by making smart, safe, and environmentally friendly EVs accessible to everyone. Today’s successful listing… supports VinFast’s commitment to sustainable mobility at a global scale.”
The company’s IPO brought its valuation to more than that of GM ($45.8B), Ford ($47.9B), and other EV makers like Rivian ($19.6B). The Vietnamese carmaker also works on strengthening its stance in the global EV market. It’s taking on new partners in large markets such as North America and Europe.
The now US-listed company has delivered about 19,000 EVs including different models as of the first half of 2023. At the same time, it’s preparing for the launch of its next-generation EV and solutions as it expands globally.
VinFast had rolled out its own EV charging network across Vietnam, spanning 63 cities and provinces. It has also developed its own retail and service network of more than 120 stores nationwide.
The company’s Nasdaq listing is a step closer to its vision for a “sustainable future for people and the planet through green, clean, and safe mobility”.
VinFast’s Sustainability and Net Zero Goals
According to VinGroup and VinFast’s ESG Director, they are on track to achieve 100% zero-emission vehicle sales by 2035. The automaker is working its way to strengthen its title as a sustainability champion and hit net zero by 2040.
However, VinFast’s total carbon emissions had increased, both for Scope 1 and 2 emission sources, according to Vingroup’s annual report.
Scope 1 increased by 4% while Scope 2 jumped much higher by about 144% from 2021 to 2022.
Scope 1 includes direct greenhouse gas emissions measured in tons of CO2 equivalent from energy consumption and losses from cooling systems, while Scope 2 emissions are indirect GHG emissions. The chart below shows VinFast emissions breakdown per Scope.
Scope 1 emissions dropped from 12% in 2021 to 5% in 2022. But Scope 2 went up from 88% to 95% for the same period.
To address its growing carbon emission, VinFast plans to install renewable energy sources (rooftop solar panels) in its factories. This is crucial to reduce the footprint from energy use, which represents most of the carmaker’s carbon emissions. Sourcing energy from renewables will offset the company’s emissions from the grid.
Part of its net zero strategy is discontinuing production of internal combustion engine vehicles in July 2022 and switching to making full EVs. More importantly, the Vingroup company pledged to reach net zero emissions by 2040 when it joined “The Climate Pledge”. The pledge is co-founded by Amazon and Global Optimism.
In the same year, VinFast also signed the COP26 Zero-Emission Vehicle (ZEV) Declaration. With that, the EV maker aimed to sell 100% zero-emission vehicles in major markets starting in 2035.
VinFast also employs processes that enable it to further reduce carbon emissions and save on energy and water consumption. They opt for energy-efficient production and partner with researchers to find new solutions to achieve zero emissions.
Just recently, the Vietnamese carmaker had broken ground at its new EV manufacturing plant in the United States. This marks another huge achievement for the company’s aim to expand and develop its supply chain in North America. The move aligns with Vingroup’s efforts and plans to establish its own battery manufacturing capacity.
Establishing EV Battery Line and Supply Chain
Last year, the parent company built a battery pack manufacturing facility at the VinES factory in Ha Tinh. At VinFast’s manufacturing facility in Hai Phong, they established a lithium iron phosphate manufacturing line for their EVs and e-bikes.
Integrating battery manufacturing technology into its EVs is crucial to meeting its goal of global expansion. To this end, Vinfast collaborates with battery industry leaders like China’s CATL to develop new battery and EV technologies.
An important part of this strategy is to ensure enough suppliers of critical EV battery components such as nickel and lithium. Lithium, in particular, has seen a soaring demand as other EV manufacturers like Tesla and Rivian are ramping up production.
The critical metal is hailed as the new oil, at least for the EVs, and the global race is on to secure this valuable resource. In the US, American Lithium Corp is playing a key role to help deliver an ample supply of lithium. The company runs two of the biggest lithium deposits in the Americas.
In the fast-evolving landscape of sustainable transportation, VinFast’s Nasdaq debut marks a monumental step towards its vision of green, clean, and safe mobility. With a commitment to net zero and innovative strategies, the Vietnamese EV company continues to find ways to drive down its carbon emission and make positive changes in the automotive industry.
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