VinFast gets US$135 million from ADB-mobilised green funding
VinFast, the first Vietnamese electric vehicle (EV) manufacturer, said on October 24 that it has received a US$135 million climate financing package from the Asian Development Bank (ADB) to manufacture Vietnam's first fully-electric public transport bus fleet and national EV charging network.
According to a press release from the company, which is a subordinate company of private conglomerate Vingroup, the credit package aims to support the country’s efforts to achieve net-zero greenhouse gas emissions and expand high-tech manufacturing industries.
The 7-year tenor climate financing package 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.
The package is certified by the Climate Bonds Initiative, a scientifically-based standard for labelling bonds, loans and other debt instruments which contribute to addressing climate change.
"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.
The project also includes a technical assistance of US$950,000 from the Australian Climate Finance Partnership (ACFP) and the Clean Technology Fund (CTF). The assistance focuses on raising consumer awareness about e-mobility's economic, environmental, and social impacts to help advance its market penetration, while helping promote the role of women studying for or working in fields related to science, technology, and mathematics.
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.