Vietnamese electric vehicle maker VinFast and the U.S. International Development Financial Corporation (DFC) have signed a letter of interest (LoI) to consider a formal application by VinFast for a $500 million loan to establish a lithium-ion battery manufacturing facility in Vietnam.
The signing, within the framework of COP28, not only reaffirms both parties’ commitment to fostering sustainable transportation, but also marks a significant milestone in the Vietnam-U.S. Comprehensive Strategic Partnership, VinFast said in a press release.
DFC and VinFast will further discuss and consider VinFast’s formal application for a $500 million loan for the establishment of a lithium-ion battery manufacturing facility in Vietnam, subject to DFC’s comprehensive review and approval process.
"This is the first project in a series of sustainable transportation development initiatives in the Vietnamese and international markets being actively discussed by the two parties," said the release.
The LOI stands in recognition of the transformational opportunity that VinFast is accelerating in the electrification of the Vietnamese transportation sector.
VinFast’s initiatives in Vietnam and abroad are built on supporting a broader innovation ecosystem through research and development, electric vehicle manufacturing, lithium-ion battery manufacturing, developing charging infrastructure nationwide, and many others.
By offering loans to global electric vehicle manufacturers, DFC can substantially contribute to promoting sustainable development initiatives and foster a greener future on a global scale.
“VinFast is proud to work with DFC to lead the way of sustainable transportation. DFC financing would set a path forward for VinFast’s global expansion strategy and its journey toward a greener future for all,” said Le Thi Thu Thuy, Global CEO of VinFast.
As the U.S. government's development finance institution, DFC partners with the private sector to finance solutions to the most critical challenges facing the developing world today. It invests across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services.
DFC investments adhere to high standards and respect the environment, human rights, and worker rights. To date, the corporation has provided support in the amount of $737 million to development projects in Vietnam, making the country its largest market in Southeast Asia.
VinFast, under Vietnamese private conglomerate Vingroup, has been listed on the Nasdaq as VFS since August 15, 2023.