The Asian Development Bank (ADB) has approved an USD135 million financial package to develop Vietnam’s first fully electric bus fleet and an electric vehicle (EV) charging network. The financing has been awarded to VinFast Trading and Production Joint Stock Company (VinFast) to oversee the deployment.  

The package consists of seven-year tenor financings, including an USD20 million loan from ADB, USD87 million worth of parallel loans that were facilitated by ADB as mandated lead arranger, USD28 million in concessional financing. The package has also been certified by the Climate Bonds Initiative.

Parallel loans were provided by the Export Finance Australia, the Finnish Fund for Industrial Cooperation (Finnfund), Oesterreichische Entwicklungsbank AG (Development Bank of Austria), and responsAbility Investments AG.

Additionally, the electric mobility project also includes a technical assistance (TA) of USD950,000 from the Australian Climate Finance Partnership (ACFP) and the Clean Technology Fund (CTF).

Currently, Vietnam’s transport sector accounts for 18 per cent of annual greenhouse gas emissions. This move is in line with the government’s aim to achieve net zero by 2050.