Vietnamese carmaker VinFast has received $135 million in financing led by the Asian Development Bank (ADB) to support the manufacturing of its fully-electric public transport bus fleet and national electric vehicle (EV) charging network.
The financing will enable VinFast to achieve net-zero greenhouse gas emissions, according to a statement released on Monday.
The climate financing comprises 7-year tenor financings, including a $20 million loan funded by ADB, parallel loans of $87 million facilitated by ADB as mandated lead arranger, and concessional financing of up to $28 million.
Export Finance Australia, the Finnish Fund for Industrial Cooperation, Oesterreichische Entwicklungsbank AG, and responsAbility also participated in the parallel loans, the statement added.
“This project delivers a high-impact, sustainable transport solution for Vietnam while helping it meet its climate goals and supporting the growth of climate finance in the region,” said ADB private sector operations department director general Suzanne Gaboury.
“Asia and the Pacific is the frontline of the global fight against climate change, and private sector projects like this one with innovative partners such as VinFast are crucial to help its countries decarbonize their economies.”
Commenting on the financing, VinFast’s Global CEO Thuy Le said “we see this as a vote of confidence in our efforts to become a global smart mobility company that offers environmentally friendly public transportation, and to advance Vietnam’s transition to a low carbon economy.”
According to official data, Vietnam’s transport sector accounts for 18% of annual greenhouse gas emissions, and its decarbonization, through options like e-mobility, will directly impact the country’s ambition to achieve net zero emissions by 2050.
Established in 2017, VinFast is Vietnam’s first domestic car company and electric passenger vehicle manufacturer. VinFast is a subsidiary of Vingroup Joint Stock Company, Vietnam’s largest private enterprise.
VinFast develops electric cars for the domestic and international markets and is investing in a nationwide network of fast-charging units to support its electric vehicle expansion in Vietnam.
VinFast, which began operations in 2019, has sold 2,208 EVs in total since its launch late last year, according to a report on Reuters. The EV maker is gearing up to expand in the US market with deliveries of the vehicle due to begin as soon as December.
