DFC mulls $500 million loan to VinFast for lithium-ion battery facility
On December 3, the United States International Development Financial Corporation (DFC) and VinFast Auto (Nasdaq: VFS) 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 not only reaffirms both parties’ commitment to fostering sustainable transportation, but also marks a significant milestone in the Vietnam - US Comprehensive Strategic Partnership.
DFC and VinFast will further discuss and consider VinFast’s formal application for a $500 million loan for the establishment of its lithium-ion battery manufacturing facilities 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.
The LOI stands in recognition of the transformational opportunity that VinFast is accelerating in the electrification of the Vietnamese transportation sector.
VinFast’s initiatives to support the electrification of the Vietnamese transportation sector in Vietnam and abroad are built on supporting a broader innovation ecosystem through research and development, electric vehicle manufacturing, lithium-ion battery manufacturing, and developing charging infrastructure nationwide.
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.
DFC is the US government's development finance institution. It partners with the private sector to finance solutions to the most critical challenges facing the developing world today. DFC invests across sectors including energy, healthcare, infrastructure, agriculture, and small business and financial services. To date, it has provided $737 million to development projects in Vietnam.
By Thanh Van
Source: VIR
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