Climate loan to finance electric bus fleet in vietnam



Asian development bank ADB arranges $135 million in loans

Hanoi, 9. November 2022. To promote the production and use of electric city buses in Vietnam, the Vietnamese vehicle manufacturer "Vinfast" receives a climate loan of 135 million dollars from the Asian Development Bank (ADB). This is what the ADB as well as Vinfast have announced. The loan package is intended for the production of electric buses for mass transit, the development of a charging network and electric mobility campaigns in Vietnam.


climate loan to finance electric bus fleet in vietnam


Vingroup Group charging stations in Vietnam. Photo: Vinfast

Sustainable transportation solution to support environmental goals

"This project provides an effective, sustainable transport solution for Vietnam while helping the country meet its climate goals and supporting the growth of climate finance in the region," emphasized ADB Manager Suzanne Gaboury. "Private sector projects like this one with innovative partners like Vinfast are critical to helping countries decarbonize their economies."



View from one of the mostly overcrowded and outdated city buses to the throng of mopeds on the streets of Ho Chi Minh City. Photo: Heiko Weckbrodt

Mopeds en masse, old buses, more and more cars: transport sector emits 18% of greenhouse gases

Background: Vietnam's population is growing rapidly and may now have already passed the 100 million mark. Contrary to widespread stereotypes, however, all these people hardly cycle: rather, internal combustion mopeds are the most common means of transport, and the number of cars is also on the rise. And the bus fleets in the cities are mostly very outdated. On the other hand, the communist government in Hanoi has set itself the goal of making Vietnam emission-free by 2020. According to Vinfast, however, Vietnam's transport sector is currently responsible for 18% of annual greenhouse gas emissions. The country itself imports most of its vehicles, but since 2017 it has had its own first car manufacturer, Vinfast. Vinfast initially focused on internal combustion engines, but is now relying heavily on its new electric vehicles, especially for its sales offensive in the West. In addition to cars, the company's management also wants to boost the production of electric commercial vehicles such as buses – and the ADB loan is intended to help with this.

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