Vietnamese EV maker VinFast receives $135 mln in green funding led by ADB

VinFast, the auto arm of Vietnam’s largest conglomerate Vingroup JSC, said last year it planned to raise at least $400 million via its first green loan to fund its manufacturing of electric vehicles.

“The assistance comprises 7-year tenor financing, including a $20 million loan funded by ADB, parallel loans

of $87 million facilitated by ADB as mandated lead arranger, and concessional financing of up to $28 million,” a joint statement by the two organisations said.

Export Finance Australia, the Finnish Fund for Industrial Cooperation, Oesterreichische Entwicklungsbank AG, and responsability also participated in the parallel loans, the statement added.

VinFast, which began operations in 2019 and stopped making combustion engine-driven cars in August, is targeting global electric vehicle sales of 750,000 per year by 2026. It is also gearing up to expand in the U.S. market.

According to ADB, the funding will also support Vietnam’s efforts to achieve net-zero greenhouse gas emissions by 2050.