The Asian Development Bank (ADB) has arranged a $135-million financing package for EV manufacturer VinFast. The funds will support the company’s efforts to establish an electric public transport bus fleet and a national charging network in Vietnam.
Established in 2017, VinFast is a subsidiary of Vingroup, Vietnam’s largest private enterprise, and some boosters have predicted that it could become “the next Hyundai.” In 2020, the company announced plans to launch fleets of electric buses in several Vietnamese cities. Earlier this year, VinFast raised $4 billion to support market launches in Europe and the US. It has opened 6 stores in California, and is building a $2-billion manufacturing plant in North Carolina.
The climate financing is certified by the Climate Bonds Initiative, a scientifically-based standard for labelling debt instruments that contribute to addressing climate change. Institutions involved in the financing package include Export Finance Australia, the Finnish Fund for Industrial Cooperation, the Austrian Development Bank, 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 ADB Private Sector Operations Department Director General Suzanne Gaboury. “Asia and the Pacific is the frontline of the global fight against climate change, and private sector projects like this one with innovative partners such as VinFast are crucial to help its countries decarbonize their economies.”