Australia supports Viet Nam in developing a green transport system

Located on a 335-hectare site in the Dinh Vu - Cat Hai Economic Zone (Hai Phong), the VinFast manufacturing complex stands as one of the region’s largest and most technologically advanced hubs. The complex brings together an integrated ecosystem of facilities, including production plants for automobiles, electric motorcycles, and electric buses; dedicated workshop areas for the supplier network; as well as a modern training center and a fully equipped R&D institute.

The facility currently has the capacity to produce 250,000 cars each year, with plans to scale up to 500,000 units as market demand grows. Annual production of electric buses has reached 600 units and is expected to increase to more than 1,500 buses by 2025. Meanwhile, combined output for electric motorcycles and e-bikes stands at 500,000 units per year, with the potential to expand to as many as 1 million units in the near future.

According to Mr. Le Ngoc Anh, Director of the VinFast Hai Phong Plant, the company’s recent positive achievements would not have been possible without Australia’s meaningful support. Under the framework of climate cooperation, Australia has invested USD 50 million in VinFast Manufacturing and Trading Joint Stock Company to help scale up the production of public electric buses and expand Vietnam’s electric-vehicle (EV) charging network.

In addition to financial investment, Australia has also provided USD 1.25 million in technical assistance to VinFast. This package covers a wide range of activities, including raising public awareness about e-mobility; conducting assessments of the economic, social, and environmental impacts of Vietnam’s transition to electric vehicles; encouraging women to pursue studies and careers in STEM fields; and promoting stronger gender equality practices within the company’s working environment.

“So far, 183 electric buses have already been deployed, contributing to emissions reduction in major urban centers; 2,171 additional charging points have been installed, significantly expanding the EV infrastructure nationwide; and more than 100 female students and technical staff have been given opportunities to engage directly with VinFast’s advanced manufacturing technologies here in Hai Phong.

Over 70 provincial and municipal leaders from eight localities have also visited the plant to explore how electric vehicles could be integrated into their public transport systems. These outcomes lay an important foundation for Vietnam’s broader transition toward clean, sustainable transportation,” Mr. Le Ngoc Anh noted.

Australia’s investment forms an integral component of a USD 135 million financing package arranged by the Asian Development Bank (ADB). Within this package, the Australia Climate Finance Partnership (ACFP) is providing a USD 20 million concessional loan, while Export Finance Australia (EFA) is extending a USD 30 million loan. Together, these contributions help de-risk the initiative, strengthen its financial viability, and enhance the project’s overall bankability.

Australian Ambassador to Viet Nam Gillian Bird expressed her pride in Australia’s collaboration with Viet Nam through its partnership with ADB and other catalytic financing instruments that support the country’s ongoing energy transition.

“These combined financial supports have enabled Viet Nam to put its first public electric bus fleet into operation and expand a nationwide EV charging network. These are significant milestones that help accelerate the shift toward a greener and more sustainable transport system,” Ambassador Gillian Bird emphasized.

The ACFP is a concessional financing facility worth up to AUD 140 million, funded by the Australian Department of Foreign Affairs and Trade (DFAT) and administered by ADB. It is specifically designed to stimulate greater private-sector investment in climate adaptation and mitigation initiatives across Southeast Asia and the Pacific. By reducing risk and improving capital mobilization, ACFP helps bridge financing gaps and promote high-impact demonstration models, generating ripple effects across the market.

In parallel, Export Finance Australia (EFA) supports Australian companies participating in overseas infrastructure and technology projects by offering a suite of flexible financial instruments, including loans, bonds, guarantees, and, in certain cases, equity investment. Through these mechanisms, Australia simultaneously advances trade opportunities, strengthens infrastructure development, and assists partner countries such as Viet Nam in implementing low-emission, climate-smart solutions.