The Australian Government is providing $50 million to Vingroup subsidiary VinFast to support electric vehicle (EV) uptake in Vietnam and support the country’s energy transition.

The investment marks the second investment by Export Finance Australia (EFA) in renewable energy in Vietnam and the Australian Government also stands ready to support Vietnam across the full range of its energy needs to successfully achieve its transition to net-zero.

Through specialist financing from EFA and the Australian Climate Finance Partnership (ACFP), Australia will support the manufacturing of electric public buses and help establish Vietnam’s first national EV charging network.

“This investment demonstrates different parts of the Australian Government working effectively together with different parts of the Vietnamese system to deliver on Vietnam and Australia’s strategic interests,” said Australian Ambassador to Vietnam, H.E. Andrew Goledzinowski.

He added that the investment demonstrates Australia is committed to addressing climate change in collaboration with important partners in the region like Vietnam.

“Australia recognizes first-hand the challenges of transitioning to a net-zero future,” the ambassador said. “As we engage in the EV transition domestically, we are also committed to working with our partners in Vietnam to also help them make the transition.”

The Australian Government will continue to explore opportunities to support sustainable infrastructure in the region. “Australia has significant capabilities to bring to our partners such as Vietnam, including exportable goods and services and financing capability,” said Ambassador Goledzinowski.

He noted that it also demonstrates the important role EFA is playing in financing the region’s infrastructure needs, having already provided $32 million for three wind farms in Vietnam.

Australia is investing alongside the Asian Development Bank and other financiers. Part of Australia’s support is being delivered through ACFP, which provides concessional finance to catalyze much larger amounts of private climate investment.