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The Latest: Abandoning its target of reaching break-even by the end of 2026, VinFast is planning to transfer all of its domestic electric vehicle manufacturing operations and massive debt obligations to another legal entity in an effort to improve its financial condition.

On May 12, according to a filing submitted to the US Securities and Exchange Commission (SEC), VinFast — the Singapore-registered entity — plans to restructure its operations to “improve its financial situation.” This effectively means VinFast will divest from its electric vehicle manufacturing operations in Việt Nam

The Details: Under the plan, VinFast will establish a new company called VinFast Việt Nam Joint Stock Company in Việt Nam, still under VinFast’s management, to continue handling commercial operations such as global research and development, intellectual property, sales, and after-sales services.

The remaining assets will be transferred to a group of investors led by Future Research and Development Investment Joint Stock Company, a legal entity whose formation and ownership transfer history are closely intertwined with VinFast and Phạm Nhật Vượng.

These transferred assets include ownership rights to VinFast’s two factories in Hải Phòng and Hà Tĩnh, with a combined value of more than 13.3 trillion đồng ($530 million USD), shares in VinEG Green Energy Solutions, and all of VinFast’s financial debt obligations totaling around 182 trillion đồng. The disclosed value of the transaction is around 13.3096 trillion đồng.

According to VinFast, the restructuring aims to create a more “asset-light” and “capital-efficient” operating model, thereby reducing the need for large investments in factories and manufacturing infrastructure while “improving the company’s financial situation” in the coming period. SEC documents specifically state that the transaction does not affect VinFast’s electric vehicle factories in India and Indonesia.

The Background: VinFast had previously targeted reaching break-even by the end of 2026. However, Reuters reported on April 1 that this target had been postponed until after 2027.

Furthermore, SEC filings published in early 2025 revealed that Vingroup was acting as a guarantor for $2.54 billion USD in loans for VinFast and would have to fulfill repayment obligations on more than $1.6 billion USD in debt during 2025.

In recent years, Vingroup — VinFast’s parent company — has repeatedly restructured its investment portfolio by divesting from or withdrawing from sectors no longer considered strategic priorities.

In 2019, the conglomerate transferred its retail arm VinCommerce and agricultural business VinEco to Masan Group, which effectively exited the direct retail-consumer ecosystem. By 2021, Vingroup also halted production of phones and electronic devices under the Vsmart/VinSmart brand, which it had previously developed as a technology manufacturing division.

Why It Matters: According to Vingroup’s second-quarter 2025 financial report, the group was carrying total liabilities of up to $31 billion USD and facing interest payment pressures of $3.2 million USD per day on international credit loans.

In answering Luật Khoa Magazine in September 2025, Vingroup stated that “only about one-third of that amount consists of financial borrowing, equivalent to 283 trillion đồng,” while adding that its “debt-to-equity ratio stands at 1.8 times, fully within internationally accepted safety thresholds.” The company also said that most “payables” consisted of advance payments received from customers and partners, which it described as “entirely consistent” with the scale of the conglomerate.

Thạch Hãn wrote this article in Vietnamese and published it in Luật Khoa Magazine on May 15, 2026. The Vietnamese Magazine has the copyrights of the English translation.

Vinfast Plans Restructuring, Divestment From Manufacturing Operations in Việt Nam

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Thạch Hãn

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