VinFast receives a loan from ABD for $135 million to produce electric buses

The financing package, which has a 7-year term, is made up of $20 million in loans funded by the ADB and $87 million in parallel loans sponsored by the bank in its capacity as an authorized capital arranger. Another $28 million concessional loan is also available.

ADB has obtained low-interest loans from bank-managed trusts, including a $20 million loan from the Australian Climate Financing Partnership Fund (ACFP), a $5 million loan from the Clean Technology Fund (CTF), and a $3 million grant from the Climate Innovation and Development Fund (CIDF), which is supported by Goldman Sachs and Bloomberg Philanthropies.

Funds and organizations including the Australian Export Assistance Agency, the Finnish Industrial Cooperation Fund, the Austrian Development Bank, and the responsAbility Fund are also participants in the funding package.

The initiative provides environmentally friendly transportation options that positively influence Vietnam, assist the country in achieving its climate goals, and encourage the expansion of climate financing in the area, Ms. Suzanne Gaboury - Director General of ADB Private Sector Operations Department stated.

Vietnam's ambition of having net zero carbon emissions by 2050 will be directly impacted by the process of reducing emissions through the use of electric cars, according to World Bank.