VinFast Secures Funding with Restructuring Plan and Sale of R&D Assets.

VinFast has secured funding for the next 12-18 months through the sale of R&D assets to its founder. The company has announced a restructuring plan that includes creating a new entity and changes to its business structure. The move aims to help VinFast scale its business and reduce its reliance on external funding.

VinFast, the Vietnamese electric vehicle (EV) maker, has secured funding for the next 12-18 months through the sale of research and development (R&D) assets to its founder, Pham Nhat Vuong. The company announced a restructuring plan that includes the creation of a new entity, Novatech Research and Development JSC, which will be sold to Vuong for $1.52 billion [1]. This move aims to help VinFast scale its business and reduce its reliance on external funding.

The new entity, Novatech, will hold investment costs tied to completed R&D projects, while VinFast's domestic manufacturing arm, VinFast Trading and Production JSC (VFTP), will continue to lead EV production and future research in Vietnam [1]. Vuong, who holds about 98% of shares in VinFast and its parent company Vingroup, will lease back intellectual property from Novatech for manufacturing purposes as needed [1].

VinFast has faced challenges including weak consumer demand and stiff competition. In the first quarter of 2025, the company made a net loss of $712.4 million, although revenue jumped 150% to $656.5 million [1]. The company has set a delivery target of 200,000 cars for 2025, more than double its deliveries in 2024 [1].

The restructuring plan is part of VinFast's broader strategy to focus on Southeast Asia, after a push into Europe and the U.S. stuttered [2]. The company has been opening dealerships in Asia, Europe, the Middle East, and the U.S. and recently began producing cars at a factory in the southern Indian state Tamil Nadu [3].

While the new funding is welcome, analysts predict that VinFast may not turn a net profit until 2033 [2]. The company's overwhelming dependence on Vuong's financial support is a significant risk. However, the new entity and restructuring plan suggest that VinFast is taking steps to become more sustainable and less reliant on external funding.

References:

[1] Reuters. (2025, August 14). VinFast to spin off R&D arm in $1.52 billion deal. Retrieved from https://www.reuters.com/business/autos-transportation/vinfast-founder-inject-another-15-billion-exchange-rd-assets-2025-08-14/

[2] TradingView. (2025). VinFast has more emergency pitstops ahead. Retrieved from https://www.tradingview.com/news/reuters.com,2025:newsml_L6N3UA0AD:0-vinfast-has-more-emergency-pitstops-ahead/

[3] Forbes. (2025, August 15). Vietnam's EV maker VinFast to sell R&D assets to billionaire founder for $1.5 billion. Retrieved from https://www.forbes.com/sites/yessarrosendar/2025/08/15/vietnams-ev-maker-vinfast-to-sell-rd-assets-to-billionaire-founder-for-15-billion/