*

VinFast to spin off R&D arm in $1.52 billion deal

*

Founder Pham Nhat Vuong to buy shares in the R&D arm

*

To lease back IP to VinFast as needed

(Rewrites with details, background)

Aug 14 (Reuters) - VinFast's founder Pham Nhat

Vuong has agreed to buy the EV maker's research and development

arm for $1.52 billion, his latest cash injection into the

loss-making Vietnamese company as it strives to break even by

the end of 2026.

The deal will involve Novatech Research and Development JSC,

a Vietnam-incorporated entity, being carved out of VinFast

Trading and Production JSC (VFTP), its domestic manufacturing

arm, VinFast said in a filing to the U.S. Securities and

Exchange Commission.

Novatech will hold investment costs tied to completed R&D

projects, while VFTP will continue to lead EV production and

future research in Vietnam.

VinFast, which debuted on the Nasdaq in 2023, has faced

challenges including weak consumer demand and stiff competition.

It made a net loss of $712.4 million for the first quarter,

although revenue jumped 150% to $656.5 million.

VinFast's shares were up 1.4% to $3.59 in pre-market trade.

Since its launch in 2017, the company has relied heavily on

support from Vuong, who holds about 98% of shares in VinFast and

its parent company Vingroup, where he serves as

chairman.

The transfer of shares in Novatech to Vuong, valued at

nearly 40 trillion dong ($1.52 billion), comprises a fair value

assessment of 17.25 trillion dong plus a premium. Intellectual

property linked to Novatech's assets will be leased back to

VinFast for manufacturing purposes as needed.

VinFast has said it has completed the development of its

first generation of EVs. Research and development costs were

$81.2 million in the first quarter of 2025, down 22.3%

year-on-year.

The EV maker has set a delivery target of 200,000 cars for

2025, more than double its deliveries in 2024. Most of VinFast's

deliveries are in the Vietnamese market.

($1 = 26,230.0000 dong)