VinFast founder Pham Nhat Vuong will acquire the Vietnamese electric vehicle maker’s research and development arm for $1.52 billion, marking his latest financial injection into the loss-making company as it targets break-even by the end of 2026.
The transaction will see Novatech Research and Development JSC, a Vietnam-incorporated unit, carved out of VinFast Trading and Production JSC (VFTP), the firm’s domestic manufacturing subsidiary, VinFast said in a filing to the U.S. Securities and Exchange Commission. Novatech will retain investment costs linked to completed R&D projects, while VFTP will continue to oversee EV production and future research in Vietnam.
Since debuting on the Nasdaq in 2023, VinFast has faced challenges including tepid demand and intense competition. It reported a first-quarter net loss of $712.4 million, though revenue rose 150% to $656.5 million. Vuong, who chairs parent company Vingroup and controls about 98% of VinFast’s shares, has been a consistent source of funding for the automaker since its launch in 2017.
The Novatech share transfer, valued at nearly 40 trillion dong, includes a fair value assessment of 17.25 trillion dong plus a premium. Intellectual property tied to Novatech’s assets will be leased back to VinFast for manufacturing needs.
VinFast has completed development of its first-generation EVs and spent $81.2 million on R&D in the first quarter of 2025, down 22.3% from a year earlier. The company aims to deliver 200,000 vehicles in 2025, more than double its 2024 total, with most sales in Vietnam.