US DFC considers 500 million USD loan to VinFast
Hanoi (VNA) - The US
International Development Finance Corporation (DFC) has signed a letter of
interest (LOI) with electric vehicles maker VinFast considering the Vietnamese
company's application for a 500 million USD loan for expansion, VinFast said on
December 4.
The signing took place on the sidelines of the 28th UN Climate Change Conference of
the Parties (COP28) in Dubai.
The loan, which will be used to support VinFast's
establishment of lithium-ion battery manufacturing facilities in Vietnam, is
subject to a comprehensive review and approval process by the DFC. The project will
be the first in a series of sustainable transport development initiatives
actively discussed by the two sides.
To receive the funding, VinFast will undergo comprehensive
assessments based on various criteria, including strong economic and financial
capabilities, compliance with the requirements of the DFC and relevant local
regulations regarding developmental impact, environmental and social
considerations, adherence to legal requirements and regulations, among other
criteria.
The DFC highly valued VinFast's outstanding efforts in a series of
projects, including the production of electric vehicles and lithium-ion
batteries, and a nationwide charging station infrastructure.
The DFC is the US government's agency responsible for promoting private
investment in developing countries. It focuses on projects that have positive
development impact, environmental and social protection, uphold human rights
and ensure labour rights.
Prior to VinFast, the DFC had announced a 737 million USD investment
in Vietnam, the largest investment in the Southeast Asia. The signing of the
letter of interest with VinFast was considered a significant milestone that
deepens the Vietnam-US comprehensive strategic partnership./.