Fresh on the scene, recently overlooked and unheard-of electric vehicle (EV) maker VinFast Auto (VFS -3.35%), a Vietnamese automaker, has been getting much more publicity after its debut in U.S. markets and additional coverage from analysts.

With the stock up nearly 60% in November, is it time for investors to embrace the foreign automaker?

What's going on with VinFast?

One of the biggest positives for VinFast in November came in a vote of confidence from a Wall Street analyst. More specifically, Wedbush analyst Dan Ives launched coverage of the Vietnamese EV maker with a buy rating and a $12 price target -- representing a nearly 70% upside from its current price.

The vote of confidence may be a bigger deal than many investors realize. VinFast is trying to get its foot in the door of an emerging EV market in the U.S., and it's doing so with hardly any name or brand recognition. Even long-standing global manufacturers with huge names such as Ford Motor Company and General Motors don't expect to turn a profit on EVs for another year or two until sales volume rises and costs decline.

Ives' vote of confidence comes from seeing operations in Vietnam. "We have seen the impressive VinFast operations in Vietnam firsthand and came away extremely impressed with its EV footprint," stated Ives in a research note. "VinFast EV vehicles are the result of years of R&D, massive engineering resources, complex supply chain relationships, and are now set for prime time."

It's true that VinFast is a bit unique in that it operates a state-of-the-art plant in Haiphong, which according to management boasts up to 90% manufacturing automation and annual production capacity of up to 300,000 units. Further, VinFast is part of the larger Vingroup, a conglomerate with its hands in everything from real estate to retail, and the group has provided substantial financial support to VinFast -- to the tune of roughly $9.3 billion since 2017.

The vote of confidence comes at a good time for the foreign automaker. VinFast has ambitious plans to enter 50 new target markets by the end of 2024, and it's using a cash infusion from Vingroup founder and chairman Pham Nhat Vuong of $1.25 billion to tackle its strategy.

In fact, in November VinFast detailed its plans for a U.S. dealer network that anticipates 125 sales points in the first phase and hundreds more by the end of 2024 -- all offering multiple models. This is a switch from its prior direct sales model.

While VinFast's ambitious market entry strategy appears daunting, the company does have a slight advantage when it comes to labor. In fact, as recently as 2022, the cost of labor in China was nearly three times higher than in Vietnam, and Detroit automakers themselves just went through a costly union autoworker negotiation that will add large pay raises into the cost of vehicles. The cheaper labor could enable the company to slash prices to the point its vehicles offer an intriguing substitute for more well-known brands.

So is VinFast a buy?

The vote of confidence in VinFast from Wall Street is worth noting, and it's a large reason the stock jumped in November. However, VinFast still has many obstacles and hurdles to navigate as it enters a slew of new markets with a relatively unknown brand. Investors should consider its closest comparable automaker before getting too hyped on its potential.

Further, VinFast has completely discontinued manufacturing internal combustion engines, which might cause some dealers -- especially those in regions with slower-selling EV rates -- hesitation to take on the brand.

Savvy investors would be wise to realize the risk associated with such daunting strategies in a capital-intensive and highly competitive automotive market. While VinFast has the potential to grow faster than EV rivals that still only sell directly to consumers, investors might want to watch this young automaker prove itself throughout 2024 before diving into VinFast with investment capital.