VinFast was blocked by Uncle Sam to US market

It seems that Uncle Sam’s house is not an easy place to penetrate for Mr. Pham Nhat Vuong

Uncle Sam is the nickname and personification of the United States. Image of an old European-American man, wearing a gile vest, a high-top hat with a pattern of the American flag with stars and stripes, tall and thin, with a goatee, handsome appearance, and healthy spirit. That comic image was drawn by the famous artist James Montgomery Flagg for the Committee of Public Information, and it became a metaphor, symbolizing America.

It can be said that VinFast entering the US market is finding its way into Uncle Sam’s house. This uncle’s family is very rich, a business that can’t get into Uncle Sam’s house can’t be called a global business. Although Chinese car companies have a very large number of sales to the market, they are still not considered global enterprises, because they only sell mainly to the Chinese domestic market and a number of other poor countries. In contrast, there are businesses with not too large sales, but standing firmly in the US market, then it is still a global business.

VinFast of Vietnamese billionair has dreams of becoming a global business. This dream was announced by Vuong in the press and he is realizing it. In order to enter Uncle Sam’s house, VinFast has to do two things, which is to raise capital at Uncle Sam’s house and taking stake in Uncle Sam’s market.

In order to raising capital on the US stock market, Mr. Pham Nhat Vuong has been preparing since last year, and filed an application with the US Securities and Exchange Commission (SEC) in December 2022. However, recently, the press simultaneously announced that Pham Nhat Vuong’s VinFast had withdrawn the IPO application. This is a sign that the way to raise capital on the US stock market through the main gate has been closed.

After withdrawing the application, VinFast intends to submit a new application to list shares in the US, after merging with Black Spade, a previously listed Special Purpose Acquisition Company (SPAC). This is considered a detour, VinFast slips through the narrow door, clinging to the newly merged business, to go to the stock market to raise capital.

In order to develop the business, Mr. Pham Nhat Vuong needs to ensure two things, the first is abundant capital, and the second is that the product must be competitive enough. In Vietnam, VinGroup is king. This business manipulates the media and political power, so it creates its own playground. However, to the world, those advantages are completely lost, VinFast is evaluated as a chick participating in the playground of the world’s war elephants.

The failure to take the main road shows that VinFast’s reputation is low and VinFast itself finds itself unable to afford the main road to jump into the US capital market, so they have to take a detour. The detour also makes potential investors consider when buying shares of an undervalued business.

It is a matter of raising capital, VinFast has a low reputation. As for the product, whether VinFast can compete with Tesla, Hyundai, Nissan etc., surely customers in the US also have the answer. When VinFast left its cocoon, which is the Vietnamese market, its cars were severely criticized. These criticisms are a huge barrier for VinFast to build its brand and develop the market in the US. So far, VinFast has only sold more than 100 cars, an amount like salt in the US car market.

The US market is considered a giant feeder for global businesses. Although it is a giant feeder, not everyone can enter it to take part. Entering the US market requires not only sufficient capacity, but also sufficient prestige. Businesses should not be China’s Huawei if they want to enter the US market. Up to now, VinFast is still confused about how to integrate into the global game. (Translated)