Vingroup conglomerate is considering delaying the IPO for it’s auto unit Vinfast until 2023, citing “market uncertainties” as the reason for possibly doing so.
The Vinfast IPO is currently set to launch in the fourth quarter of 2022, but Vingroup Chairman Pham Nhat Vuong has said that the date is flexible and could be pushed back if necessary.
“We are eyeing a Q4 IPO, but there are lots of ongoing market uncertainties now… If necessary we may delay it to next year,” Vuong said, speaking at the company’s annual general meeting.
“The IPO is not just for fundraising. It’s also about marketing and claiming VinFast’s position globally,” he added.
The automotive start up, which commenced operations in 2019, had filed for an IPO with the US securities regulators las month, announcing plans to spend $4 billion on its first US factory complex.
Whilst acknowledging the possibility of a delay, Vuong confirmed the company planned to go ahead with the IPO in the near future “no matter how uncertain the market”.
Vuong also addressed the supply chain issues caused by sustained Covid lockdowns in China.
“Chip factories in Shanghai are closed – therefore chip supplies have been disrupted and the same story for other parts,” he said, confirming that the company was working on solutions.
Relatively unknown at present, VinFast is hopeful of gaining a larger foothold within the US, and aims to compete with existing EV manufacturers by offering a battery leasing model that will reduce purchase prices for its vehicles. The company is hopeful of receiving assistance from the US government’s $25 billion Advanced Technology Vehicles Manufacturing loan program to assist with the expansion.
Beyond the US, VinFast is also looking for a plant in Germany, the company confirmed in January.