OEM streamlines operations
VinFast secures funding for scaling operations
VinFast
Vietnamese EV maker VinFast has secured funding for its restructuring plan to scale operations for the next 12-18 months with the spin off and sale of its research and development assets to its founder.
Once sold, the division will be renamed as Novatech Research and Development,
and VinFast will initially retain a controlling stake, but will transfer all
shares to the founder and CEO Pham Nhat Voung for VND39 trillion ($1.6bn).
After the deal’s completion, VinFast will lease back intellectual property for
its vehicle production as needed.
The OEM is currently restructuring to streamline its
business and strengthen its financial position, particularly focusing on
penetrating the European market.
VinFast spoke to Automotive Logistics last month and
stated that it is focused on launching new strategic hubs across Europe to
further reduce delivery times for parts. “The combination of strategically
located distribution centres and strong partnerships enables us to provide
competitive delivery times, promptly meet customer needs and enhance the
quality of our aftersales throughout the continent,” it said.
The EV maker has not yet said what exactly this fresh
funding will be used for, but it could help the ASEAN
OEM in its shift into Europe.
