VinFast Founder to Invest $1.5 Billion in Exchange for R&D Assets

VinFast founder Pham Nhat Vuong will inject $1.5 billion into the EV maker by buying its research and development arm, Novatech, for $1.52 billion. This deal will involve Novatech being carved out of VinFast's domestic manufacturing arm, VinFast Trading and Production JSC. Vuong holds about 98% of shares in VinFast and its parent company Vingroup. VinFast aims to break even by 2026 and has set a delivery target of 200,000 cars for 2025.

Vietnamese electric vehicle maker VinFast Auto Ltd has announced plans to spin off part of its research and development unit into a newly formed company, Novatech Research and Development SJC, which will then be sold to the automaker’s founder, Pham Nhat Vuong, for approximately US$1.5 billion (RM6.3 billion). This transaction reflects a significant strategic move by Vuong to facilitate VinFast’s long-term growth [1].

The newly-formed Novatech will be carved out from VinFast Trading and Production JSC (VFTP) and will initially remain a direct subsidiary of VinFast. After the creation of the new entity, VinFast will sell all of its shares in Novatech to Vuong for approximately 39.8 trillion dong ($1.52 billion). VinFast will own about 38% stake in Novatech, with Vuong acquiring the remaining shares [2].

Novatech will hold assets related to the costs of completed research and development projects. VinFast will continue to operate its core EV manufacturing business in Vietnam and conduct future research and development on new products and technologies through VFTP [3].

Vuong, Vietnam’s richest man with a US$10.9 billion fortune, has already invested over US$2 billion of his own money into VinFast and has expressed his willingness to support the company until his cash runs out. This latest investment is part of Vuong’s ongoing efforts to bolster VinFast’s financial position and achieve profitability by the end of 2026 [4].

The transaction comes amidst VinFast’s ambitious growth plans, including the recent inauguration of a factory in the Indian state of Tamil Nadu with an initial production capacity of 50,000 vehicles per year. The company also expects to open a plant in Indonesia by October 2025. VinFast delivered 97,399 EVs globally in 2024 and aims to deliver at least 200,000 vehicles in 2025, with a significant portion of these deliveries occurring in Vietnam [5].

The move to spin off and sell the R&D arm underscores VinFast’s commitment to leveraging its intellectual property and technological advancements to maintain a competitive edge in the EV market. Despite facing challenges such as weak consumer demand and stiff competition, VinFast’s strategic restructuring and Vuong’s continued financial support position the company for future growth and success [6].

References:
[1] https://theedgemalaysia.com/node/766626
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L4N3U60MN:0-vinfast-to-spin-off-r-d-assets-sell-shares-to-founder-for-1-5-billion/
[3] https://www.reuters.com/business/autos-transportation/vinfast-founder-inject-another-15-billion-exchange-rd-assets-2025-08-14/
[4] https://www.businesstimes.com.sg/keywords/electric-vehicles
[5] https://finance.yahoo.com/news/vinfast-founder-inject-another-1-110602346.html