OEM streamlines operations
VinFast secures funding for scaling operations
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.
