Wealth of Vietnam’s richest man Pham Nhat Vuong balloons by more than 8 times to US$44.3 billion on VinFast debut
- EV maker VinFast Auto’s shares surged 255 per cent on its market debut, boosting the wealth of its billionaire chairman Pham Nhat Vuong
- But the rise in Vuong’s fortunes may be short lived if his company follows the trend of others listed by special purpose acquisition (SPAC)
The index has not previously included Vuong’s stake in the carmaker, which he founded. He directly and indirectly controls 99 per cent of the company’s outstanding shares, mostly through his conglomerate, Vingroup JSC.
That large stake limits the shares available for other investors to trade, meaning the stock is prone to large swings.
To be sure, other recent SPAC deals have experienced eye-popping rallies that ended a few trading sessions after their merger closed, as traders look to make a quick profit on companies with limited shares – meaning the jump in Vuong’s fortune may be short lived.
The carmaker was established by Vuong in 2017, and forecasts sales will reach 45,000 to 50,000 this year. It began building a factory in North Carolina last month. Vuong and his relatives have invested at least US$300 million into the firm.
By that time, he had already established publicly-traded Vingroup JSC, focused on real estate, resorts, schools, shopping malls and more. The Hanoi-based firm booked revenue of US$4.4 billion last year, and remains a major shareholder in VinFast.
If VinFast can hold onto its gains, it will be in a unique position given the dismal performance of other electric carmakers taken public via SPACs, including Lordstown Motors Corp., Nikola Corp. and Faraday Future Intelligent Electric Inc., all of which lost more than 90 per cent of their market value since their mergers.
