What are these folds and how should they be operated? (Photos)

In my opinion, you need a V-Y wedge labiaplasty with clitoral hood reduction which will tighten the labia and remove all the redundant skin. The skin edges of the labias will be the same as original but a triangular wedge will be removed from each side along with the clitoral hood folds. If you want the skin edges to be lighter, you can do a linear labiaplasty with clitoral hood reduction but this will not tighten the labias. Risk of clitoral hood reduction is minimal if any with an experienced surgeon with knowledge of the technique. Will just remove the excess skin folds around the clitoris without touching the clitoris itself.

The area marked encompasses the clitoral hood. This is excised when reducing the hood, taking care to avoid the midline to avoid the clitoral nerve.