VinFast has announced a major restructuring exercise involving its manufacturing business in Vietnam in a deal worth approximately US$530 million (approximately VND 13.3 trillion). The move aims to improve capital efficiency, reduce debt burden and help the EV maker move towards profitability faster.As part of the restructuring, VinFast will separate its manufacturing operations in Vietnam into a new entity called VFTP (VinFast Trading and Production JSC). The new company will house the brand’s manufacturing assets, including its factories in Hai Phong and Ha Tinh.VFTP will then be transferred to an investor group led by Future Investment and Development Research JSC, with participation from VinFast founder Pham Nhat Vuong. Along with the production facilities, VFTP will also handle approximately VND 182 trillion (approximately USD 7.3 billion) in liabilities associated with manufacturing operations.
After the restructuring, VFTP will focus exclusively on vehicle production. Apart from manufacturing vehicles for VinFast, the firm may also explore contract manufacturing and assembly partnerships for other companies in the future. Meanwhile, VinFast Vietnam’s core business will continue to handle high-value functions such as research and development, product engineering, software, technology, sales, marketing and customer service.According to VinFast, the restructuring follows a growing global trend of adopting an “asset light” business model. Under this approach, companies reduce direct ownership of expensive manufacturing assets and instead focus more on technology, product development, branding and customer experience.The company believes the move will help improve operational flexibility while allowing more efficient use of capital, especially at a time when EV manufacturers around the world are investing heavily in batteries, software, autonomous systems and charging infrastructure.VinFast has clarified that the restructuring will not affect customers, products or after-sales services. Factories will continue to produce vehicles for VinFast under existing quality standards, while the company’s sales and service operations will continue as normal. The company also expects the restructuring to help reduce a large portion of its debt burden and accelerate its path to profitability, with expectations now pointing to profitability from 2027 onwards.
