VinFast Auto has unveiled a strategic plan to reorganize its assets by creating a new entity called Novatech Research and Development Joint Stock Company (JSC). This move is aimed at supporting the company’s long-term growth goals.
Novatech JSC will be separated from VinFast Trading and Production JSC (VFTP) and will operate as a direct subsidiary of VinFast. It will hold assets related to investment costs of completed research and development (R&D) projects. VinFast Auto will retain a 37.642% ownership stake in Novatech, ensuring control over 99.9% of voting rights.
On the other hand, VFTP will continue to focus on VinFast’s core electric vehicle manufacturing operations in Vietnam, as well as conduct future R&D activities on new technologies and products.
Following the restructuring, VinFast plans to transfer all of its shares in Novatech to its CEO, Pham Nhat Vuong, for approximately VND39.8tn ($1.6bn). This amount includes the fair value of the shares based on an independent third-party valuation, as well as an additional premium. After the transfer, VinFast and its subsidiaries will lease back licenses for the R&D intellectual property required for manufacturing VinFast products.
The completion of this reorganization is subject to obtaining necessary approvals. Recently, VinFast Auto inaugurated a new assembly plant in Tamil Nadu, India, marking a significant milestone in the company’s global expansion efforts. This facility, located in the Sipcot Industrial Park in Thoothukudi, is VinFast’s third vehicle assembly plant to become operational worldwide.
In June, VinFast also opened a new electric vehicle manufacturing plant in HÃ TÄ©nh, Vietnam. Additionally, the company issued VND2.5tn ($96m) in bonds through its VIF12502 bond series in the following month, as part of its strategy to enhance its presence in the global market.
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