At the signing ceremony (Photo: VinFast) Hanoi (VNA) - The USInternational Development Finance Corporation (DFC) has signed a letter ofinterest (LOI) with electric vehicles maker VinFast considering the Vietnamesecompany's application for a 500 million USD loan for expansion, VinFast said onDecember 4.
The signing took place on the sidelines of the 28th UN Climate Change Conference ofthe Parties (COP28) in Dubai.
The loan, which will be used to support VinFast'sestablishment of lithium-ion battery manufacturing facilities in Vietnam, issubject to a comprehensive review and approval process by the DFC. The project willbe the first in a series of sustainable transport development initiativesactively discussed by the two sides.
To receive the funding, VinFast will undergo comprehensiveassessments based on various criteria, including strong economic and financialcapabilities, compliance with the requirements of the DFC and relevant localregulations regarding developmental impact, environmental and socialconsiderations, adherence to legal requirements and regulations, among othercriteria.
The DFC highly valued VinFast's outstanding efforts in a series ofprojects, including the production of electric vehicles and lithium-ionbatteries, and a nationwide charging station infrastructure.
The DFC is the US government's agency responsible for promoting privateinvestment in developing countries. It focuses on projects that have positivedevelopment impact, environmental and social protection, uphold human rightsand ensure labour rights.
Prior to VinFast, the DFC had announced a 737 million USD investmentin Vietnam, the largest investment in the Southeast Asia. The signing of theletter of interest with VinFast was considered a significant milestone thatdeepens the Vietnam-US comprehensive strategic partnership./.
