Vietnam’s EV tech startup VinFast goes public in a $23 billion SPAC merger deal

Vietnamese electric vehicle (EV) tech startup VinFast finally makes its debut on the Nasdaq stock exchange following the completion of its successful SPAC merger with the U.S.-listed special purpose acquisition company (SPAC) Black Spade Acquisition.

Immediately after the market opens, VinFast’s shares began trading at $22, experiencing a brief surge before declining. As of Tuesday mid-morning, the stock had dipped by approximately 9%. In contrast, Black Spade Acquisition’s shares had concluded at $10.45 on the preceding Monday. The deal with Black Spade puts VinFast’s valuation at about $23 billion, according to a June filing with the U.S. Securities and Exchange Commission.

The news of the market debut comes about a year after the EV maker received a $135 million climate financing package from The Asian Development Bank (ADB) to further support Vietnam’s efforts to achieve net-zero greenhouse gas emissions and expand the high-tech manufacturing industries.

Sometimes called a blank-check company, SPAC is a shell company that has no operations but plans to go public with the intention of acquiring or merging with a company utilizing the proceeds of the SPAC IPOs.

So far this year, SPACs account for 21 out of the 40 US initial public offerings (IPOs), according to data from the SPAC analytics firm, SPACAnalytics.com. The De-SPAC Index, which tracks some of these companies, is down over 50% so far this year.

Vietnam’s transport sector accounts for 18% of annual greenhouse gas emissions, and its decarbonization, through options like e-mobility, will directly impact the country’s ambition to achieve net zero emissions by 2050.

VinFast is a subsidiary of Vingroup, Vietnam’s largest conglomerate founded by Vietnam’s richest man Phạm Nhật Vượng. The 5-year-old startup has partnered with leading automotive industry giants, including LG Chem, Gotion, Pininfarina, and ZF. Besides, VinFast’s team consists of alumni from several top automakers, including BMW, General Motors, Toyota, Hyundai, Porsche, Jaguar-Land Rover, and Volkswagen, among others.

Phạm Nhật Vượng, who made his first fortune in dried ramen noodles,  is a Vietnamese property developer and Vietnam’s first billionaire and richest person. He attended the Hanoi University of Mining and Geology before going to Russia to study at the Moscow Geological Prospecting Institute. He returned back to Vietnam to start the Vingroup.

We covered VinFast last August after the EV tech startup announced it was hiring 8,000 new employees to further ramp up production and meet the increasing demands for its electric cars.

Founded 29 years ago on August 8, 1993, Vingroup focuses on technology, industry, real estate development, retail, and services ranging from healthcare to hospitality. Four years ago, Vượng decided to start building and selling cars through the company’s automotive group called VinFast.