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VinFast secures US$500 million loan from U.S. DFC for lithium-ion battery facilities expansion

The Saigon Times

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HCMC – In a significant move towards advancing sustainable mobility, the United States International Development Finance Corporation (DFC) has signed a letter of intent (LOI) to provide a half-billion-dollar loan for VinFast, the Vietnamese electric vehicle (EV) manufacturer, to build lithium-ion battery manufacturing facilities in Vietnam.

The LOI outlines DFC’s consideration of a US$500 million loan to support VinFast’s expansion plans, particularly for establishing lithium-ion battery manufacturing facilities in Vietnam.

VinFast said in a statement on Monday that the deal is contingent upon undergoing a thorough and comprehensive review and approval process by the DFC.

The DFC, a U.S. government agency, expressed its commitment to supporting VinFast’s lithium-ion battery facilities in Vietnam through a post on X (formerly Twitter), though specific details were unkonwn.

Founded in 2017 and backed by Vietnam’s diversified business group Vingroup, VinFast entered the EV market, delivering the first EVs in California in March and making its Nasdaq debut in late August.

Le Thi Thu Thuy, VinFast’s Global CEO, said, “DFC financing would set a path forward for VinFast’s global expansion strategy and its journey toward a greener future for all.”

The collaboration between VinFast and DFC signifies a pivotal moment in the pursuit of sustainable mobility, fostering green initiatives and supporting VinFast’s ambitions on the global stage.

The LOI signing took place on the sidelines of the 28th United Nations Climate Change Conference (COP28) which is ongoing in Dubai, United Arab Emirates, from November 30 until December 12, 2023.

Prior to VinFast, DFC had pledged to invest US$737 million in Vietnam, the highest amount of investment by DFC in Southeast Asia.

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