Install Winimage and start it
After installing WinImage, you will get to this screen:
Click menu "Disk" and "Convert Virtual Hard Disk Image".
Select file type "Virtual Hard Disk (*.vhd)" under file type field.
Choose the folder where the source virtual disk is, select the virtual disk and click "Open".
Select either "Create Fixed Size Virtual Hard Disk" or "Create Dynamically Expanding Virtual Hard Disk".
Select file type "VMware VMDK (*.vmdk)" under file type field.
Choose the folder where the destination virtual disk will be, type the virtual disk name and then click "Save".
Give it time to finish the conversion. It may take a while depanding on the size of the virtual hard disk.
Once it is done you will go back to the opening window. The conversion is done.
This is "Virtual to Virtual" (V2V) conversion.