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The price for VinFast’s planned transfer of its Vietnam manufacturing unit for $530 million was set using book value and is about five times higher than the median valuation prepared by an independent advisor, according to details filed with the U.S. Securities and Exchange Commission (SEC).
In the SEC filing, VinFast said the agreed price of 13.3096 trillion dong (equivalent to $530 million) was based on the book value of the net assets allocated to VinFast Production and Trading Joint Stock Company (VFTP), calculated as of March 31, 2026.
To support the transaction, VinFast submitted a valuation report prepared by Grant Thornton, acting as the independent financial advisor. The firm used a discounted cash flow (DCF) approach, estimating an equity value for the manufacturing business in a range of $36 million to $609 million.
The $530 million transaction price falls at the upper end of that valuation range and is $106 million above the average valuation used in the report.
The SEC filing includes the following components used to arrive at the equity value:
The valuation report notes that the equity value is low despite the core manufacturing segment being valued at $2.575 billion, attributing the difference to the unit’s debt structure.
On the projected balance sheet, the manufacturing entity would record total liabilities of $3.307 billion. The filing states these figures include the effect of Vingroup converting VND 10,000 billion of debt into preferred equity in Q2 2026.
According to the report, deducting these financial liabilities substantially reduces the final equity valuation.
The valuation model applied a weighted average cost of capital (WACC) of 13.69% for the manufacturing segment and a perpetual growth rate of 4%.
Revenue for the unit was modeled using a cost-plus pricing approach with a 5% markup, corresponding to a target net margin of about 4.48%.
The advisory based its valuation on a total output scenario from 2026 to 2030 of 1.36 million electric cars and over 2 million electric motorcycles. It projected gross margin to turn positive to 1% by 2030 as capacity utilization improves.
Beyond the core manufacturing segment, the SEC filing also records the Investment Cooperation Contract with Saigon Glory for the Ben Thanh Quadrant project, valued at $560 million.
The filing describes this component as measuring the cash flow from the right to receive 90% of annual profits, with a minimum total profit of 20,814 billion dong on a maximum equity contribution of 20,700 billion dong. The advisor applied a 15% discount rate to this item.
Under the overall pricing structure, VinFast’s transfer at $530 million is intended to help its U.S. entity recover funds to fully retire a $404.8 million promissory note.
At the same time, the transaction shifts debt of $3.307 trillion to the domestic entity, supporting a transition toward an asset-optimized operating model.
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