Kamal Ghorui
VinFast has announced a major restructuring exercise involving its manufacturing business in Vietnam in a deal valued at around USD 530 million (approximately VND 13.3 trillion). The move is aimed at improving capital efficiency, reducing debt burden and helping the EV maker move faster towards profitability.As part of the restructuring, VinFast will separate its manufacturing operations in Vietnam into a new entity called VFTP (VinFast Trading and Production JSC). This 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 Pham Nhat Vuong, founder of VinFast. Along with the production facilities, VFTP will also take over around VND 182 trillion (roughly USD 7.3 billion) in liabilities linked to manufacturing operations.
Following the restructuring, VFTP will focus purely on vehicle production. Apart from manufacturing vehicles for VinFast, the entity could also explore contract manufacturing and assembly partnerships for other companies in the future. Meanwhile, the core VinFast Vietnam business will continue handling higher-value operations such as research and development, product engineering, software, technology, sales, marketing and customer service.According to VinFast, the restructuring follows the 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 worldwide 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. The factories will continue producing vehicles for VinFast under existing quality standards, while the company’s sales and service operations will continue normally. The company also expects the restructuring to help reduce a large portion of its debt burden and accelerate its path towards profitability, with expectations now pointing towards profitability from 2027 onward.
