VinFast to shut down Lang Lang operations

Vietnamese car company VinFast will end local operations at the former Holden Proving Ground, leaving the outer Melbourne test site without an operating owner from October.

Sources close to the company confirmed the news to Wheels, revealing VinFast will be paring back staff employed at Lang Lang down to a core maintenance team that will run the site – presumably until a new buyer is found.

Around 50 people will be made redundant as part of the news, which was officially communicated with staff yesterday.

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VinFast originally bought the Lang Lang proving ground in 2020 after General Motors closed down the Holden brand in February, paying GM a reported AU$33.6m.

VinFast planned to consolidate its global engineering activities in Australia, complementing an initial investment in a Port Melbourne-based technical centre back in 2019 that was spearheaded by former Holden executive Kevin Yardley.

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Yardley parted ways from VinFast in May when it announced it would close the Port Melbourne technical centre. Between 50 and 90 people were offered a job in Vietnam or a redundancy.

The company has previously explained to Wheels it was focused on relocating its vehicle development closer to production in Hai Phong in Vietnam, citing COVID-19 had compromised its global network.

It’s unclear what the future holds for the Lang Lang site. No mention has been made about what plans need to be made for a potential sale.

When it was last offered for sale, trucking magnate Lindsey Fox – who owns the Phillip Island circuit and Anglesea proving ground – was reported as one potentially interested party.

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The site, which spans 877 hectares, is home to a 44km road network. It has benefited from continued development since it was built in 1957, including an upgrade to roads and the emissions lab in 2018, which cost GM AU$15.9m.

During its local vehicle development program VinFast has offered access to the proving ground for testing, development and events, hinting at the significant cost required to run the site.

VinFast was founded in 2017 by Vietnamese billionaire Pham Nhat Vuong as a new business pillar under Vuong’s umbrella corporation, VinGroup. Around AU$3.5bn was committed to VinFast.

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Vinfast Lux SA2.0

As for its history in Lang Lang, it has developed the electric VFe34 crossover which publicly launched earlier this year alongside the VFe35 and VFe36.

Deliveries of the VFe34 are set to begin later in 2021 when they join the crossover Fadil, sedan Lux A2.0 and SUV Lux SA.20 in VinFast’s range.