VinFast divests EV manufacturing operations for asset-light strategy

Under the restructuring plan disclosed on May 12, VinFast will implement a split of its subsidiary, VinFast Trading and Production JSC (VFTP), to focus on high-value electric vehicle (EV) designing, branding, pricing, and go-to-market strategy, while offloading its capital-intensive manufacturing infrastructure.

A new entity, named VinFast Vietnam JSC (VFVN), will be established as a direct subsidiary of VinFast Auto Ltd to oversee research and development activities, intellectual property, after-sales operations, and sales functions.

Furthermore, VFVN will manage equity interests in key arms, including VinFast Commercial and Service Trading LLC, VinFast Engineering Australia Pty Ltd, and VinFast Germany GmbH.

Following this split, the company intends to transfer its entire interest in VFTP, valued at approximately $532.4 million, to a group of purchasers led by Future Investment Research and Development JSC.

VFTP will retain the physical manufacturing infrastructure in Vietnam, including the factory complex in Haiphong, and remain responsible for existing financial liabilities with third-party creditors. Under the manufacturing agreement, VFTP will continue to produce VinFast-branded EVs based on the designs and technical standards provided by VFVN.

The completion of the manufacturing divestment remains subject to shareholder approval at the upcoming AGM on May 27.

The timing of the divestment is closely linked to the shifting regulatory landscape.

Earlier this month, VinFast joined other major domestic automakers, including THACO and TC Group, in urging the Ministry of Finance to reconsider draft proposals to remove car manufacturing, assembly, and importation from the list of conditional investment sectors.

The companies argued that existing requirements for factories, assembly lines, and warranty systems are essential safeguards for product quality and consumer protection. The Ministry of Industry and Trade has also raised similar concerns, warning that removing these barriers could expose the nation to a surge of low-value assembly operations and unfair competition, particularly from neighbouring China.

However, the Vietnam Chamber of Commerce and Industry has backed the Ministry of Finance’s deregulation proposal, arguing that the current framework creates high entry barriers that inflate vehicle prices and that existing technical safety and environmental inspections provide sufficient oversight.

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