VinFast Auto Ltd announced on May 12 it will sell two Vietnamese factories to reduce roughly 182 trillion dong (about US$6.9 billion) in debt and obligations [1, 2, 3]. The move aims to make VinFast essentially debt-free, retaining only a small amount of remaining debt, the company said [1].
The restructuring will separate VinFast's manufacturing operations housed under VinFast Trading and Production JSC (VFTP) into an independent company. Production at the Haiphong and Ha Tinh factories will be outsourced under the new entity [2, 3]. Overseas facilities in India and Indonesia will remain under VinFast’s direct control [2, 3].
VinFast plans to transfer its entire stake in VFTP, valued at about 13.3 trillion dong, to a buyer group led by Future Investment Research and Development JSC, formerly Novatech R&D JSC. After the transaction, Future Investment will hold 95.5% of VFTP, while founder Pham Nhat Vuong will retain less than 5% as a minority investor [2, 3].
Future Investment and Vuong will assume borrowings, bonds, finance leases, payables, and other obligations tied to the manufacturing operations being spun off [2, 3]. The standalone manufacturing company will be allowed to produce vehicles not only for VinFast but for other automakers as well, with VinFast’s orders prioritized [2, 3].
VinFast described the spinoff as a strategic pilot model. “If the model proves effective, we will continue to scale and expand it. If challenges arise, we remain prepared to make the necessary adjustments,” the company said [2].
Founder Vuong said in April he expects VinFast to reach EBITDA breakeven and generate profits in its domestic market in 2027. VinFast declined to specify an exact timeline for post-spinoff profitability but aims to accelerate its path to profit [2, 3].
VinFast’s restructuring will take effect following the sales and transfers related to the VFTP stake. The company has not disclosed a specific completion date but the announcement on May 12 marked the beginning of the process [2, 3].
