In an inverted economy, what is up is down and what is down is up. This means that the natural hierarchy is defied and human nature is challenged.
VinFast: a national champion turned international loser
VinFast is a Vietnamese automobile company that was once seen as a national champion. However, in the inverted economy, it has become an international loser. This is because VinFast is struggling to find a ‘natural demand’ for its electric vehicles relative to sales and earnings.
Insider Selling - For Post Modernist Infrastructure
One of the founders of VinFast recently made headlines by selling his shares and effectively tunneling the money back to his domestic real estate company in Vietnam. This indicates that the founder is more interested in his own wealth than in the success of VinFast.
Excuse my French - Arbitrage
In the case of VinFast, there would have been an opportunity for arbitrage if as VinFast is sort of a spin off from the domestic real estate business. However, this would have required a level of sophistication that is beyond the grasp of most Vietnamese capital market specialists.
Fake It - Till You Make It
BYD is a Chinese electric vehicle company that has been successful in creating artificial demand for its products. VinFast may attempt to do the same by offering subsidies or other incentives to buyers. However, it is important to note that artificial demand is not sustainable in the long term.
A Stock Less Than $6 and Maybe 75 cent’s
VinFast is a struggling company in an inverted economy. It is facing a number of challenges, including insider selling, difficulty finding a market for its products, and a lack of sophistication by the Vietnamese capital market to have an international listing.