VinFast’s SPAC merger finalized, primed for Nasdaq trading initiation

VinFast, the Vietnamese electric vehicle manufacturer, is set to make its debut on the Nasdaq stock exchange in New York on Tuesday. This follows the completion of its merger with Black Spade Acquisition, a U.S.-listed special purpose acquisition company.

Special purpose acquisition companies (SPACs) are shell companies that raise funds through an initial public offering (IPO) with the intention of merging with a private company to take it public within two years.

In a joint statement released on Monday, VinFast and Black Spade Acquisition announced that trading would commence on August 15. The merger values VinFast at approximately $23 billion, as stated in a June filing with the U.S. Securities and Exchange Commission (SEC).

Following the merger, Black Spade Acquisition became a wholly owned subsidiary of VinFast and is expected to delist from the New York Stock Exchange.

VinFast CEO Le Thi Thu Thuy expressed excitement about the listing, stating that it opens up access to capital markets for the company in the future.

VinFast, the automobile division of Vietnamese conglomerate Vingroup, was established in 2017. The company has been expanding its presence in the U.S., competing with established automakers like Tesla and BYD, as well as traditional automakers focusing on hybrids and electric vehicles.

Regarding pricing, VinFast’s strategy is to offer premium quality products at affordable prices with excellent after-sales service. The company ensures competitive pricing while incorporating more features and technology into their products. VinFast aims to maintain profitability and believes that it will align with increased production volume.

For example, VinFast’s 5-seater VF 8 starts at $46,000, while Tesla’s basic 5-seater Model Y is priced from $47,740. It should be noted that Tesla vehicles in the U.S. are eligible for a $7,500 federal tax credit, which is currently not applicable to VinFast vehicles.

As part of its expansion plans in the U.S., VinFast is constructing a factory in North Carolina. The facility, spread across 1,800 acres, is expected to produce up to 150,000 vehicles annually starting in 2025, a year later than its initial target.

VinFast CEO Le Thi Thu Thuy believes that the North Carolina plant will significantly reduce costs and enable the company to offer affordable pricing to U.S. customers.