Home Mobility $135 Million Climate Financing Package Goes to Supporting E-Mobility in Vietnam

$135 Million Climate Financing Package Goes to Supporting E-Mobility in Vietnam

The Asian Development Bank (ADB) has mobilized a $135 million climate financing package for VinFast Trading and Production Joint Stock Company (VinFast) for manufacturing Vietnam’s first and only fully-electric public transport bus fleet and first national electric vehicle (EV) charging network. This monetary assistance is meant to support Vietnam’s efforts to achieve net-zero greenhouse gas emissions, as well as expanding high-tech manufacturing industries.

“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 in a recent press release. “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.”

Accounting for 18 percent of their annual greenhouse gas emissions, the decarbonization of Vietnam’s transport sector will directly impact the country’s ambition to achieve net zero emissions by the ambitious goal of the year 2050. Additionally, the project includes a technical assistance of $950,000 from the ACFP and the CTF, focused on raising consumer awareness about e-mobility’s economic, environmental and social impacts to help advance its market penetration. This initiative is also meant to promote women studying for or working in fields related to tech, mathematics and science.

“We are delighted to receive this extensive support and a long-term financing package from ADB and several esteemed international Development Finance Institutions,” said VinFast’s Global CEO Thuy Le. “We see this as a vote of confidence in our efforts to become a global smart mobility company that offers environmentally friendly public transportation, and to advance Vietnam’s transition to a low carbon economy.”