VinFast Buys Founder's Real Estate Firm for $1.2 Billion to Bolster Finances

Vietnamese electric vehicle (EV) maker VinFast announced on September 16 that it will acquire Ngoc Hoi Real Estate Investment Company from its founder, Pham Nhat Vuong, for approximately $1.2 billion (30.857 trillion Vietnamese dong). The transaction is intended to strengthen VinFast's financial standing and secure additional income and cash flow from the real estate sector. According to filings with the U.S. Securities and Exchange Commission (SEC), VinFast Vietnam, a subsidiary of VinFast, signed an agreement on September 15 to purchase 100% of Ngoc Hoi Company's shares from Mr. Vuong and two minority shareholders. The reported transaction value is lower than an independent valuation of the shares. The acquisition may also complement VinFast's core EV business. Ngoc Hoi Company holds a 20% economic interest in a joint venture developing the 9,200-hectare Hanoi International Sports Urban Area in Hanoi. A key feature of this project is the VinFast Trống Đồng stadium, with a capacity of 135,000 seats, currently under construction. Furthermore, Mr. Vuong will contribute up to 10 trillion Vietnamese dong (approximately $396.7 million) to VinFast Vietnam by the end of 2026 to bolster its capital. This capital injection is expected to be completed by the end of 2026 and aims to further consolidate VinFast Vietnam's capital base and support its strategic growth initiatives. This marks the second time VinFast has invested in the real estate sector. Previously, its manufacturing subsidiary VFTP agreed to contribute a significant amount to a partnership with Saigon Glory. However, in a restructuring in June, VFTP was transferred to another group of investors, with Mr. Vuong becoming a minority shareholder. Saigon Glory is the developer of a luxury complex project in Ho Chi Minh City that is currently stalled. The acquisition of the real estate firm comes at a time when VinFast continues to require substantial capital for production expansion and market development. The company has not yet reached its breakeven point. In May, VinFast underwent a restructuring where it sold its Vietnamese manufacturing operations, including two factories, to a third party for $530 million, with the buyer assuming approximately $6.9 billion in debt. The company also continues to receive financial support from Mr. Vuong. Reuters reported that VinFast's revenue in the first quarter of 2026 increased by nearly 42% year-on-year, but its net loss also widened. Its overseas expansion strategy is also being adjusted. In India, VinFast has temporarily halted plans to produce three models (VF 3, VF 6, and VF 7) to re-evaluate costs, after selling about 10,000 vehicles since its market launch in 2025. The company is shifting to developing affordable models specifically designed for the Indian market, with one model expected to be priced under $12,000. Meanwhile, Vingroup, VinFast's parent company, maintains diversified business operations, with real estate through Vinhomes being a significant sector. According to Reuters, Vingroup's total financial obligations, including debt and other financial commitments, amounted to approximately $42.8 billion as of June 2026. Source: BBC Vietnamese