VinFast to sell Vietnamese manufacturing unit in $530 million restructuring move

HÀ NỘI — Vietnamese electric vehicle maker VinFast plans to spin off and sell its domestic manufacturing business for about US$530 million as part of a restructuring aimed at shifting to a more capital-efficient, asset-light operating model in Việt Nam, according to a filing with the US Securities and Exchange Commission (SEC) on May 12.Under the plan, VinFast will split certain assets from VinFast Trading and Production JSC (VFTP), its manufacturing subsidiary in Việt Nam, into a newly established entity called VinFast Vietnam JSC (VFVN). The new company will hold the automaker’s global research and development operations, intellectual property, after-sales services and overseas subsidiaries in Australia and Germany.VFTP will retain manufacturing-related assets in Việt Nam, stakes in VinEG Green Energy Solutions JSC and certain real estate-related investment agreements, while continuing to assume its existing financial liabilities to third-party creditors, subject to creditor approval.Following the split, VinFast plans to transfer its entire stake in VFTP to an investor group led by Future Investment Research and Development JSC, with VinFast founder and chief executive Phạm Nhật Vượng participating as a minority investor.The transaction would value VFTP at around VNĐ13.3 trillion, equivalent to approximately $530 million.VinFast said the price was negotiated on an arm’s-length basis using the book value of consolidated net assets allocated to VFTP after the restructuring as of March 31.The company added that the valuation exceeded the midpoint estimate of over VNĐ2.65 trillion, or about $106 million, calculated by Grant Thornton Vietnam Advisory using a discounted cash flow methodology.VFVN and VFTP will also sign a manufacturing and supply agreement under which VFTP will continue producing VinFast-branded vehicles in Việt Nam based on designs and technical standards provided by VFVN.VinFast said the restructuring would allow the company to focus on higher value-added activities, such as product development, technology, brand building and global sales, while giving it greater flexibility to respond to evolving electric vehicle technologies and market dynamics.The company said the proposed transaction would not affect its other subsidiaries or international operations, including manufacturing facilities under development in India and Indonesia.VinFast expects to complete the deal in the third quarter of 2026, subject to shareholder, creditor and regulatory approvals.The filing also disclosed amendments to share exchange agreements between VinFast and parent company Vingroup as part of the restructuring.As of the shareholder record date on May 1, Vượng and affiliated shareholders controlled about 97.8 per cent of VinFast Auto Ltd, according to company filings. — BIZHUB/VNS