Vietnamese electric vehicles (EVs) maker VinFast has secured a $100 million green loan facility from MUFG Bank, Ltd., to be used for VinFast’s development and international expansion strategy.

The loan marks the beginning of a long-term relationship between the parties, demonstrative of the commitment of both VinFast and MUFG to advance the green transition in Vietnam and globally, VinFast said in a statement on Thursday.

The $100 million credit facility is structured as a green loan.

Under this arrangement, the loan proceeds will be used to support VinFast’s development and expansion as a pure-EV company.

VinFast said it aims to strategically deploy the new capital on key projects to expand the company’s business and presence in Asia, promote revenue growth and optimize costs to achieve long-term success.

“The inaugural $100 million green credit facility from MUFG Bank does not only bolster our financial capacity, but also reaffirms our commitment to the global green energy transition,

“We value MUFG’s leadership in sustainable finance in Vietnam, and look forward to developing a long-term and prosperous partnership,” said Pham Nguyen Anh Thu, Deputy Chief Executive Officer of Investment of VinFast.

Takao Nozaki, MUFG Bank’s Managing Director, Regional Head of Vietnam stated that they are delighted to support the sustainable development of VinFast and its emergence as a pioneering force in the EV industry.

“With our strong expertise and track record in sustainable financing and experience in renewables and clean energy sectors, we are well-positioned to empower VinFast’s EV development efforts and international expansion strategy,

“Our partnership with VinFast aligns with MUFG’s strategic priorities in promoting net-zero cooperation, supporting green transition and the growth of clean energy solutions globally. We look forward to seeing VinFast’s continued success and are proud to be part of their journey towards a sustainable future,” he added.

According to the statement, this first-time collaboration underscores MUFG’s confidence in VinFast’s groundbreaking vision, growth potential, and inspiring development story, whilst promising to unlock future development opportunities.

Together, the parties aim to explore the potential of the rapidly growing EV industry while creating positive values for the community.

The facility agreement between VinFast and MUFG Bank comes at a time when MUFG is playing a prominent role in promoting Vietnam’s sustainable development.

As Chairman of the Banking Working Group (2023-2025), MUFG has coordinated with Vietnamese ministries to organize specialized discussions on green finance, carbon credit mechanisms, startup support, and environmental, social and governance (ESG) initiatives, affirming its position as a crucial green finance bridge.

It is noted that eight years since its establishment, VinFast has emerged as one of the few pure-EV companies globally with a diverse product portfolio and a successfully listing on NASDAQ.

In 2024, the company secured the number one position in the domestic automotive market, established presence in key markets such as North America and Europe, and is steadily expanding into promising markets such as India, Indonesia, and the Philippines, leveraging the strength of Vingroup’s comprehensive green ecosystem built around VinFast vehicles.

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