HCMC – Vietnamese electric vehicle (EV) manufacturer VinFast has received a US$135 million financing package from the Asian Development Bank (ADB) to manufacture Vietnam’s first fully-electric public transport bus fleet and first national EV charging network.
VinFast said in a statement today, October 24, that the financial package is expected to support Vietnam’s efforts to achieve net-zero greenhouse gas emissions and expand hi-tech manufacturing industries.
The seven-year climate financing comprises a US$20 million loan funded by ADB, parallel loans of US$87 million facilitated by ADB as mandated lead arranger, and concessional financing of up to US$28 million.
Climate financing is certified by the Climate Bonds Initiative, a scientifically-based standard for labeling bonds, loans and other debt instruments which contribute to addressing climate change.
ADB has partially offset the project’s risks by utilizing concessional financing from its managed trust funds from the Australian Climate Finance Partnership, funded by the Australian Government, the Clean Technology Fund and the Climate Innovation and Development Fund, funded by Goldman Sachs and Bloomberg Philanthropies.
The bank also mobilized parallel loans from Export Finance Australia, the Finnish Fund for Industrial Cooperation, Oesterreichische Entwicklungsbank AG, and ResponsAbility.
“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 Suzanne Gaboury, director general of ADB’s Private Sector Operations Department.
“Asia and the Pacific is the frontline of the global fight against climate change, and private sector projects like this one, while innovative partners such as VinFast are crucial to help its countries decarbonize their economies,” she added.
In Vietnam, the transport sector accounts for 18% of the country’s annual greenhouse gas emissions and its decarbonization through options such as e-mobility, which will directly impact the country’s ambition to achieve net zero emissions by 2050.
Le Thi Thu Thuy, Global CEO at VinFast, said the financing package would facilitate VinFast’s efforts to become a global smart mobility company that offers environmentally friendly public transportation and advances Vietnam’s transition to a low carbon economy.