The Asian Development Bank (ADB) has arranged 135 million USD climate change financing package for VinFast to support production of public transport electric buses and network of charging stations.
The financial support package to combat climate change includes a 7-year loan of 20 million USD, concessional financing of up to 28 million USD from ADB and a loan of 87 million USD by ADB as 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 offers a sustainable transport solution that makes a big impact, helping Vietnam meet its climate goals while promoting the development of financing projects to combat climate change in the region,” said ADB’s General Manager for Private Sector Operations, Suzanne Gaboury.
Vehicles account for 18% of annual greenhouse gas emissions in Vietnam. Therefore, private sector projects with innovative partners like 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 by electric vehicles, will directly impact Vietnam’s goal of reaching net zero carbon emissions by 2050.
VinFast builds Vietnam’s first electric vehicle charging station network.
In addition, the project includes a 950,000 USD technical assistance (TA) package from ACFP and CTF, focusing on raising consumer awareness about the economic, environmental and social impacts of traveling by electric vehicles. Since then, the project has promoted bringing this green vehicle to life.
Le Thi Thu Thuy, VinFast Global General Director, said: “We are pleased to receive extensive support and long-term financing packages from ADB and reputable international development financial institutions. This funding package is a vote of confidence for VinFast in its efforts to become a global smart vehicle manufacturer, provide environmentally friendly transport and accelerate the transformation of Vietnam into a low-carbon economy”.
@ Zing News
Related
Source: Vietnam Insider