Download : Virtual Machine Converter 3.0 from Microsoft
Run the following command from Powershell :
Import-Module ‘C:\Program Files\Microsoft Virtual Machine Converter\MvmcCmdlet.psd1’
ConvertTo-MvmcVirtualHardDisk -SourceLiteralPath D:\VM\WindowsServer2003.vmdk -VhdType DynamicHa
rdDisk -VhdFormat Vhdx -DestinationLiteralPath D:\VM\
Create a new VM in Hyper-V and attach the converted disk to it.
Remember to remove the VMWare tools before convert the VM.