VinFast Founder Pham Nhat Vuong to Invest $1.5 Billion in R&D Assets

VinFast founder Pham Nhat Vuong has agreed to inject $1.52 billion into the electric vehicle (EV) maker by purchasing its research and development (R&D) arm, marking his latest financial support for the loss-making Vietnamese company. The move comes as VinFast aims to break even by the end of 2026.

The deal involves Novatech Research and Development JSC, a Vietnam-incorporated entity, being carved out of VinFast Trading and Production JSC (VFTP), the company’s domestic manufacturing unit, according to a filing with the U.S. Securities and Exchange Commission. Novatech will hold investment costs related to completed R&D projects, while VFTP will continue leading EV production and future research within Vietnam.

VinFast, which debuted on Nasdaq in 2023, has faced challenges such as weak consumer demand and intense competition. The company reported a net loss of $712.4 million for the first quarter, though revenue surged 150% to $656.5 million. Shares rose 1.4% in pre-market trading to $3.59.

Since its launch in 2017, VinFast has relied heavily on support from Vuong, who owns about 98% of VinFast and its parent company, Vingroup (VIC.HM), where he serves as chairman. The transfer of Novatech shares to Vuong, valued at nearly 40 trillion dong ($1.52 billion), 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 as needed for manufacturing purposes.

VinFast has completed development of its first-generation EVs. R&D expenses totaled $81.2 million in Q1 2025, down 22.3% year-on-year. The company targets delivering 200,000 cars in 2025, more than double its 2024 deliveries, with most sales concentrated in the Vietnamese market.