Vietnamese automaker VinFast has received a US $135 million funding package from the Asian Development Bank (ADB) to build the nation’s first entirely electric public transportation bus fleet and electric car charging network.
The Climate Bonds Initiative has recognized the climate finance package, which includes a $20 million loan from ADB, $87 million in parallel loans that the bank brokered, and up to $28 million in concessional financing.
Through its managed trust funds, which are made up of loans from the Australian Climate Finance Partnership (ACFP), the Clean Technology Fund (CTF), as well as a grant from the Climate Innovation and Development Fund, the ADB claimed that by using concessional financing; it has partially offset the project’s risks.
The parallel loans come from ResponsAbility, Oesterreichische Entwicklungsbank AG, Export Finance Australia, and the Finnish Fund for Industrial Cooperation.
Additionally, US $950,000 in technical support from ACFP and CTF was given to increase consumer understanding of the social, economic, and environmental impacts of e-mobility. Additionally, it will be put to use to support women who are pursuing careers in math, science, or technology.
In Vietnam, the transport industry is responsible for 18% of all yearly greenhouse gas emissions. By 2050, the government wants to have net-zero emissions.
