Monday, June 10, 2024
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Vinfast Auto Its R&D assets are being removed and then sold to its founders Pham Nhat Vuong That’s $1.5 billion as the tycoon deepens his investment in electric car manufacturers that make losses.
According to the regulator Register Released on Thursday. Once the transaction is completed, Novatech will continue to operate its manufacturing operations in Vietnam at Vinfast and help develop new products and technologies.
“The deal reflects further efforts of the founders to promote the company’s long-term growth,” Vinfast said in a statement.
The deal will be Pham’s latest cash injection to make Vinfast a viable player in the global electric vehicle market. The company has been opening dealers in Asia, Europe, the Middle East and the United States earlier this month, starting to produce cars at a factory in Tamil Nadu, southern India.
In the first quarter of this year, the company’s net loss expanded to $712 million from $617 million a year ago due to fierce competition in the global electric vehicle market. In 2024, Vinfast, which aims to rehydrate in the second half of next year, sold 97,000 electric vehicles, mainly in Vietnam.
Pham, whose real-time net worth is $12.7 billion, began the beginning of his establishment of a momentary noodle business in Ukraine in 1993. He sold his business to Nestlé in 2010 and used the money to launch Vingroup. Since then, Vingroup has grown into a major business with real estate, retail, healthcare, education, automotive and technology businesses.
Earlier this month, Vinfast announced it would invest about 374 trillion ding (US$14 billion) to develop a port and logistics center outside Hanoi, where Vinfast produces electric vehicles in a 335-hectare factory complex.
