This move comes as the company is undergoing restructuring, separating its manufacturing operations in Vietnam, and preparing to transfer ownership of the factory to a group of investors.
VinFast Manufacturing and Trading Joint Stock Company (VFTP) has just issued a notice to bondholders in accordance with the regulations of the Ministry of Finance regarding changes in senior personnel.
Accordingly, Mr. Pham Nhat Vuong has been relieved of his duties as General Director of VFTP effective June 22nd. He will be replaced by Mr. Trinh Van Ngan.
However, the dismissal only applies to the VFTP legal entity in Vietnam. Mr. Pham Nhat Vuong retains his role as CEO of VinFast globally, continuing to manage the electric vehicle company's operations internationally.
The personnel changes come shortly after VinFast approved a large-scale restructuring plan.
Previously, on June 16th, VinFast's General Shareholders' Meeting approved the plan to split the company. According to the plan, a portion of the assets, rights, obligations, and shares of existing shareholders will be transferred to a new legal entity without terminating the existence of VFTP.
Billionaire Pham Nhat Vuong. Photo: VIC
You may also like
Vietnam's carbon exchange is about to launch.(Dan Tri Newspaper) - The Ministry of Finance will coordinate with the Ministry of Agriculture and Environment and other relevant agencies and units to organize the opening ceremony of the domestic carbon exchange on June 29th. The new legal entity is named VinFast Vietnam Joint Stock Company (VFVN), headquartered in the Dinh Vu - Cat Hai Economic Zone (Hai Phong), with a charter capital of nearly 5,184 billion VND.
According to the announced plan, VFVN will take over many of VinFast's core activities, including global research and development (R&D), intellectual property, sales, and after-sales service. Simultaneously, the company will hold stakes in several overseas subsidiaries such as VinFast Engineering Australia Pty Ltd, VinFast Germany GmbH, and VinFast's commercial and service business units.
Meanwhile, VFTP will retain assets related to its manufacturing plant system in Vietnam, its stake in VinEG Green Energy Solutions Joint Stock Company, and financial liabilities with independent creditors, subject to the approval of the relevant parties.
According to the plan, VinFast will transfer all its interests in VFTP to a group of investors led by Future Investment Research and Development Joint Stock Company. Mr. Pham Nhat Vuong will also participate in the transaction as a minority investor.
The total value of the transaction was announced at approximately $530 million.
After the restructuring is complete, VFTP will continue to operate its factories in Vietnam and manufacture vehicles under contract for VFVN. The two parties will sign a production agreement to ensure uninterrupted operation of the supply chain. The vehicles will continue to be manufactured according to the designs and technical standards provided by VFVN.
VinFast's management stated that the restructuring could generate a one-time profit to be recorded in the financial statements, although the specific value and accounting method are still being assessed.
For creditors and bond investors, the company asserts that the split does not alter the terms of the issued bond tranches, does not affect the ability to repay debt obligations, and does not create an obligation to repurchase bonds before maturity.
Vietnam encourages US businesses to expand investment in high technology.On the morning of June 26th, at the Government Headquarters, Deputy Prime Minister Ho Quoc Dung received Mr. Jeff Place, Supply Chain Director of Coherent Group (USA). During the meeting, the Deputy Prime Minister affirmed that Vietnam encourages US businesses to expand investment, especially in high-tech, innovation, and semiconductor industries. According to regulations, after the completion of the business separation, VinFast and the separated company will be jointly and severally liable for debts, employment contracts, and financial obligations arising before the separation, unless the parties agree otherwise in accordance with the law.
Mr. Pham Nhat Vuong's departure from the CEO position at VFTP is therefore seen as part of the restructuring of the governance structure after the company separated its business segments. In the new model, the manufacturing segment in Vietnam will operate under a separate legal entity, while activities related to research, product development, business, and global market expansion will be concentrated at VinFast Vietnam.
This is a significant step as VinFast continues to adjust its organizational model to serve its development strategy in international markets, while also mobilizing additional resources from investors for domestic production.
Source: https://vietnamnet.vn/ty-phu-pham-nhat-vuong-thoi-lam-ceo-vinfast-2528981.html
