In Vietnam, the Asian Development Bank (ADB) has awarded a $135 million climate financing package to the electric vehicle maker VinFast, to manufacture Vietnam’s first, fully electric public transport bus fleet and an electric vehicle charging network across Vietnam.
The aim of the ADB funding is to achieve net-zero greenhouse gas emissions and to expand high-tech manufacturing industries in the South East Asian country. The $135 million of funding is comprised of tenor financing, loans, and concessional financing.
For ADB, the project’s risks are partially offset with concessional financing through its managed trust funds. These are comprised of loans from the Australian Climate Finance Partnership funded by the Australian Government (ACFP), the Clean Technology Fund (CTF) and a grant from the Climate Innovation and Development Fund, which itself is funded by Goldman Sachs and Bloomberg Philanthropies. The ADB also mobilised parallel loans from Export Finance Australia, the Finnish Fund for Industrial Cooperation, and the Oesterreichische Entwicklungsbank AG.
VinFast was founded in 2017 and is primarily known internationally for its electric cars. In 2019, VinGroup set up the subsidiary VinBus with the purpose of operating up to 3,000 electric buses manufactured by VinFast. In 2021 VinBus Ecology Transport Services officially put the first smart electric bus into operation in Vietnam. According to VinGroup at the time, the buses boast a battery capacity of 281 kWh, capable of moving up to 220 – 260km. The Vietnamese vehicle manufacturer said the buses charge in 2 hours at VinBuss 150kW fast charging station system with charging technology provided by StarCharge.
“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.”
So far, VinFast and ADB have not revealed exactly how many buses are to be put into operation or where, or how many EV charging points are to be provided for which kind of vehicles.
Keyword: VinFast gains ADB funding for e-buses & charging in Vietnam