The Asian Development Bank (ADB) has arranged a USD 135 million climate change financing package for VinFast to support the production of electric buses for public transport and a network of charging stations.
The climate change mitigation financial support package includes a USD 20 million 7-year loan, concessional financing of up to USD 28 million from ADB and a USD 87 million loan from ADB as the main capital arrangement.
In this transaction, ADB arranged financing for VinFast with concessional capital from trust funds including the Australian Government’s Australian Climate Finance Partnership (ACFP), the Clean Technology Fund (CTF), Goldman Sachs’ Climate Innovation and Development Fund and Bloomberg Philanthropies.
ADB also mobilized parallel loans from the Australian Export Assistance Agency, the Finnish Industrial Cooperation Fund, the Austrian Development Bank and responsAbility.
The public electric bus system covers the whole country.
“Asia and the Pacific are at the forefront of the global fight against climate change. This credit package provides a sustainable transportation solution that has a high impact, helping Vietnam achieve its climate goals while furthering the development of financing projects to combat climate change in the region,” said Suzanne Gaboury, General Manager for Private Sector Operations at ADB.
Vehicles account for 18% of Vietnam’s annual greenhouse gas emissions. Therefore, private sector projects with innovative partners such as VinFast are very important to help Vietnam reduce carbon emissions in the process of economic development.
The process of reducing carbon emissions, through the solution of moving with electric vehicles, will directly affect Vietnam’s goal of achieving net zero carbon emissions by 2050.
VinFast is building the first network of electric vehicle charging stations in Vietnam.
In addition, the project includes a $950,000 Technical Assistance (TA) package from ACFP and CTF aimed at raising consumer awareness of the economic, environmental and social impacts of electric vehicle travel. Since then, the project has promoted to bring this green vehicle to life.
Le Thi Thu Thuy, Managing Director of VinFast Global, said: “We are delighted to receive comprehensive support and long-term financing packages from ADB and renowned international financial development institutions. This financing package is a vote of confidence for VinFast in its efforts to become a global manufacturer. of becoming smart vehicles, providing environmentally friendly transport and accelerating Vietnam’s transformation to a low-carbon economy”.
@ Sing News
