Vietnamese electrical vehicle ( EV ) maker VinFast, subsidiary of Vingroup JSC, Vietnam's largest conglomerates, has secured a US$100 million green loan facility from Japan’s MUFG Bank to be used for the EV maker's development and international expansion strategy.

The loan, both parties say, marks the beginning of a long-term relationship and is demonstrative of the commitment they have to advance the green transition in Vietnam and globally.

The loan proceeds will be used to support VinFast’s expansion and development and as a pure-EV company as 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 facility does not only bolster our financial capacity, but also reaffirms our commitment to the global green energy transition,” states Pham Nguyen Anh Thu, the EV maker’s deputy CEO of investment. “We value MUFG’s leadership in sustainable finance in Vietnam and look forward to developing a long-term and prosperous partnership."

Takao Nozaki, the bank's managing director and regional head of Vietnam, adds: "With our strong expertise and track record in sustainable financing and experience in the renewables and clean energy sectors, we are well-positioned to empower VinFast’s EV development efforts and international expansion strategy.”