Asian Development Bank Helps Vietnam Cut Emissions Via E-Buses Green Loan Project
The Asian Development Bank (ADB), alongside finance partners and co-financiers from the private sector, supports Vietnam in cutting greenhouse gas emissions and reduce traffic congestion.
Through the VinFast Electric Mobility Green Loan Project, ADB and finance partners and private co-financiers promote electric vehicles as a major mode of public transport and supports the growth of the electric transport industry.
The project has introduced the first e-bus fleet and the first national e-vehicle charging network in ASEAN member state Vietnam, the bank said.
Last year, ADB mobilised about $135 million in financing to help a Vietnamese company, Vinfast, manufacture and expand the use of e-buses across Vietnam. VinFast Trading and Production Joint Stock Company is Vietnam’s first domestic car and e-vehicle manufacturer, developing its own cars for the domestic and international markets.
The climate finance package supported VinFast’s investment in manufacturing the first e-buses and developing a nationwide e-vehicle charging network in Vietnam.
The e-buses are now operated across the country, including in the big cities of Ha Noi, Ho Chi Minh City, and Phu Quoc.
The VinFast e-buses, funded by the climate financing, are expected to reduce Vietnam’s greenhouse gas (GHG) emissions by an estimated 155,000 tonnes over their operating life and help the country fulfil its commitments to the Paris Agreement on Climate Change.
The collaboration between ADB, VinFast, and financing partners is also expected to help modernise the transport industry in Vietnam. Additionally, project aims to raise consumer awareness about electric vehicles and promote science, technology, engineering, and mathematics among young women.