VinFast disclosed information regarding a new real estate venture in a report filed with the U.S. Securities and Exchange Commission (SEC). VinFast Manufacturing and Trading Joint Stock Company (VFTP), a subsidiary of the electric vehicle manufacturer, has signed a cooperation agreement with Saigon Glory Limited Liability Company to enter the real estate business.

Under the terms of the agreement, VFTP is expected to contribute 20,700 ty dong (equivalent to 826,3 million USD). Saigon Glory will serve as the developer, providing resources and expertise to manage the cooperative projects. The agreement is valid for 5 years, during which VinFast's subsidiary is set to receive a minimum pre-tax profit share of approximately 20,800 ty dong (830,3 million USD).

According to VinFast, this strategic agreement aims to generate passive income. This income will be reinvested into the company's core electric vehicle business. Additionally, the selected projects are expected to promote green transportation through electric vehicle usage and the development of related infrastructure.

VinFast cars displayed at a customer test drive event in TP HCM. *Photo: Pham Trung*

Saigon Glory, established in 2018, was formerly a subsidiary of Bitexco Group. However, in late 9/2024, Bitexco transferred its entire capital in Saigon Glory to Phuong Dong Ha Noi Company. Saigon Glory is also known as the investor of the One Central HCM mega-project. This complex spans 8,600 m2 in the Ben Thanh quadrangle, opposite Ben Thanh Market in TP HCM, with a total investment of 500 million USD (over 13,000 ty dong). The project has been stalled since 11/2022 with no signs of restarting.

VinFast was founded in 2017 by billionaire Pham Nhat Vuong. Four years later, the company fully transitioned to electric vehicle production, discontinuing its gasoline car segment.

In the first 6 months of this year, VinFast reported revenue of 32,915 ty dong (approximately 1,3 billion USD), more than double the previous year's performance. During the same period, the company sold 72,167 electric vehicles globally, over three times more than last year. Despite this growth, the company recorded a loss of 37,987 ty dong.

After focusing on pure electric vehicle development, VinFast may start selling hybrid cars next year. The VF 8 and VF 9 models are expected to feature this configuration, likely as extended-range electric vehicles (EREV). Introducing hybrid vehicles would allow the Vietnamese automaker to expand its customer reach, appealing to those who appreciate electric vehicle operation but are concerned about long-distance travel, finding charging stations, or lengthy charging times.