On the Dash:
- VinFast will spin off part of its R&D department into a new company called Novatech Research and Development SJC.
- VinFast will sell all its shares in Novatech to founder and CEO Pham Nhat Vuong for $1.5 billion.
- VinFast Trading and Production JSC (VFTP) will remain a VinFast subsidiary and continue its EV manufacturing business.
VinFast Auto Ltd. will spin off part of its research and development department into a new company called Novatech Research and Development SJC, according to a recent filing with the U.S. Securities and Exchange Commission (SEC).
Novatech will be formed from VinFast Trading and Production JSC (VFTP) and will initially remain a direct subsidiary of VinFast, which will own a 38% stake. Once Novatech is fully formed, VinFast will sell all its shares in the company to its founder and CEO, Pham Nhat Vuong, for $1.5 billion.
VFTP will remain a VinFast subsidiary and continue its EV manufacturing operations, while also conducting research and development on future products and technologies.
VinFast founder and CEO Pham, Vietnam’s richest man, has invested more than $2 billion of his personal funds into the automaker and has publicly pledged to continue doing so to support its global expansion and success.
VinFast recently reported a first-quarter net loss of $712.4 million, with rising costs tied to its global expansion outpacing its revenue gains.
As part of its expansion efforts, the company inaugurated a new factory in Tamil Nadu, India, earlier this year, with an initial production capacity of 50,000 vehicles annually. The company also plans to open a new facility in Indonesia by October.
