OeEB supports climate finance package to promote electric mobility in Vietnam

Vietnam has been ranked among the most vulnerable nations to climate change impacts. The country’s diverse geography means it is hit by typhoons, landslides, flooding, and droughts – weather events expected to worsen in coming years. Estimates suggest that climate change will reduce national income by up to 3.5% by 2050.

While Vietnam’s contribution to global greenhouse gas (GHG) emissions is still relatively small, the country’s rapid economic growth has led to a quadrupling of per capita GHG emissions between the years 2000 and 2018, with emissions accelerating at one of fastest rates in the world.

The transport sector accounts for 18% of the country’s annual greenhouse gas emissions with road transport being the biggest source of emissions. Creating greener, cleaner transport therefore plays a significant role in reducing air pollution and greenhouse gas emissions contributing to climate change. 

Decarbonizing the transport sector through e-mobility

In October 2022, OeEB contributed USD 25 million to a USD 135 million financing package arranged by the Asian Development Bank (ADB) for VinFast Trading and Production Joint Stock Company (VinFast). The funds will enable the manufacturing of Vietnam’s first fully electric public transport bus fleet and first national electric vehicle (EV) charging network. OeEB's loan benefits from a guarantee issued by the Austrian Ministry of Finance.

"We are proud to participate in the financing package arranged by ADB. Supporting investments that help fight climate change in the world’s most vulnerable countries is one of our key priorities. This loan facility will support Vietnam’s efforts to achieve net-zero greenhouse gas emissions by 2050, expand its high-tech manufacturing industry and create high-quality jobs", says Sabine Gaber, Member of OeEB’s Executive Board. 

"We are delighted to receive this extensive support and a long-term financing package from ADB and several esteemed international development finance institutions. We see this as a vote of confidence in our efforts to become a global smart mobility company that offers environmentally friendly public transportation, and to advance Vietnam’s transition to a low carbon economy," says Thuy Le, Global CEO of VinFast.

Established in 2017, VinFast is Vietnam’s first domestic car company. The company develops e-cars for the domestic and international markets and is investing in a nationwide network of fast-charging units to support its e-vehicle expansion in Vietnam.