VinFast receives a capital of 135 million USD to develop electric vehicles
On 24/10/2022, it was announced that this USD 135 million financing is arranged by ADB as the main capital, to support VinFast in the production of electric public transport buses and the first network of electric vehicle charging stations in Vietnam.
In detail, the 7-year financing package includes $20 million in ADB-financed loans, $87 million in parallel loans catalysed by ADB as theauthorised arranger, and an incentive worth $28 million. ADB offset some of the project's risk by mobilising concessional financing through bank-managed trusts, including a $20 million loan from the Australian Climate Financing Partnership Fund (ACFP); a $5 million loan from the Clean Technology Fund (CTF) and a grant of up to $3 million from the Climate Innovation and Development Fund, funded by Goldman Sachs and the Bloomberg Philanthropies. Other loans were also raised by ADB from the Australian Export Finance Fund, the Finnish Industrial Cooperation Fund, the Austrian Development Bank (Oesterreichische Entwicklungsbank AG) and responsAbility.
According to ADB, Vietnam's transportation sector accounts for 18% of total annual greenhouse gas emissions. The decarbonisation of this sector, through solutions such as electric vehicles, will directly impact Vietnam's ambition to achieve net-zero emissions by 2050. In addition, the project includes $950,000 worth of technical assistance from ACFP and CTF, focused on raising consumer awareness about the economic, social and environmental impacts of electric vehicle mobility to help promote market penetration of these vehicles. Technical assistance will also help enhance the role of women studying or working in science, technology and math-related occupations.
ADB is committed to building the Asia-Pacific into a prosperous, inclusive, resilient, and sustainable region, while sustaining poverty eradication efforts. Established in 1966, ADB is owned by 68 members with 49 members from the Asia-Pacific region.
VinFast owns a green transport ecosystem including: a diverse range of electric vehicle products, spanning many segments and categories from electric cars, electric buses to electric motorcycles, and a system of public electric buses and a nationwide network of charging stations. In addition to the Vietnamese market, the company is expanding its operations on a global scale.
Source: VinFast, the Internet