Pham Nhat Vuong, founder of VinFast, has agreed to acquire the EV maker’s research and development unit for US$1.5 billion.

VinFast, based in Vietnam, debuted on Nasdaq in 2023 and has struggled with weak demand and strong competition.

The deal will see Novatech Research and Development JSC separated from VinFast’s domestic manufacturing arm, with Novatech taking on investment costs for completed R&D projects.

VinFast will continue EV production and future research in Vietnam.

Intellectual property from Novatech will be leased back to VinFast as needed.

Vuong holds about 98% of VinFast and its parent company, Vingroup.

VinFast reported a Q1 loss of US$712.4 million, with revenue up 150% to US$656.5 million.

The company spent US$81.2 million on R&D in Q1 2025, down 22.3% year-on-year.

VinFast aims to deliver 200,000 cars in 2025, with most sales in Vietnam.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Founder-backed companies can sustain losses longer but face higher stakes

Vuong’s $1.52 billion R&D purchase represents just the latest in a series of massive cash injections to keep VinFast afloat.

The founder has already committed over $2 billion of his personal fortune to the company, while his conglomerate Vingroup plans to lend VinFast up to $1.4 billion by 202612.

This level of sustained support allows VinFast to operate despite significant losses, such as $712.4 million in the first quarter alone, while pursuing ambitious targets like 200,000 vehicle deliveries in 2025.

However, this approach creates enormous concentration risk, as Vuong holds about 98% of VinFast shares, meaning the company’s survival depends almost entirely on one person’s financial capacity and willingness to continue funding losses.

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