Billionaire Founder to Acquire R&D Assets of Vietnamese EV Manufacturer VinFast for $1.5 Billion
In a significant move to bolster its presence in the global electric vehicle (EV) market, VinFast, the Vietnamese automaker, has received a substantial investment of $1.5 billion from its founder, Pham Nhat Vuong. This latest injection of funds follows Vuong's commitment of $1.9 billion, announced in April 2023.
The investment will see Vuong acquire VinFast's research and development (R&D) arm, Novatech, in a strategic spin-off. The deal, worth $1.52 billion, will enable Novatech to bear the costs of completed R&D projects, allowing VinFast's manufacturing arm to focus on production and future R&D within Vietnam.
This investment comes at a critical time for VinFast, as it navigates competitive pressures and weak consumer demand. Despite a widened net loss of $712 million in the first quarter of 2025, the company has achieved a 150% increase in revenue to $656.5 million during the same period.
With the funds, VinFast aims to expand its competitiveness and growth in the global EV market. The company has already started manufacturing EVs in a 335-hectare factory complex and is opening dealerships across Asia, Europe, the Middle East, and the U.S.
The transaction will result in the formation of a new entity, Novatech Research and Development, which will house the R&D assets. After the sale, Novatech will continue to run VinFast's manufacturing operations in Vietnam and will also contribute to developing new products and technologies for the automaker.
Pham Nhat Vuong, the man behind this investment, is no stranger to business ventures. He established an instant noodle business in Ukraine in 1993 before selling it to Nestle in 2010. The funds from this sale were used to launch Vingroup, the major conglomerate that VinFast is a part of, with businesses spanning real estate, retail, healthcare, education, automobiles, and technology.
This latest investment by Pham Nhat Vuong is a testament to his commitment to VinFast's growth and his vision for the company's future in the global EV market. With the strategic restructuring and financial support, VinFast is poised to achieve long-term growth and success.
[1] VinFast Auto: Pham Nhat Vuong's Investment and Commitment (2023-2025) [2] VinFast Agrees to Sell R&D Assets to Founder Pham Nhat Vuong for $1.52 Billion (2025) [3] VinFast's Q1 2025 Financial Report [4] Total Investment in VinFast Reaches $14 Billion (2025) [5] VinFast's Strategic Restructuring: A Focus on Manufacturing and R&D in Vietnam (2025)
- Pham Nhat Vuong, the founder of VinFast and Vingroup, has made a strategic investment of $1.5 billion in VinFast's R&D arm, Novatech, aiming to bolster the company's competitiveness and growth in the global electric vehicle market.
- With the sale, Novatech Research and Development will be formed as a new entity, managing R&D assets, running manufacturing operations in Vietnam, and contributing to developing new products and technologies for VinFast, while the company focuses on production and future R&D within Vietnam. The deal is part of VinFast's strategic restructuring, backed by a total investment of $14 billion, setting the stage for long-term growth and success in the global EV market.
