Finnfund invests in Vietnamese electric bus manufacturer

Finnfund is among the investors in a $135 million financing package for VinFast, a Vietnamese company that manufactures the nation's first fully-electric public transport bus fleet. The company has also developed Vietnam's inaugural national electric vehicle (EV) charging network.

The investment aims to support Vietnam's efforts toward achieving net-zero greenhouse gas emissions and expanding its high-tech manufacturing industries. The transport sector contributes 18% of the country's annual greenhouse gas emissions, making its decarbonization through e-mobility critical for meeting the 2050 net-zero target.

Noah Law, Investment Manager at Finnfund, highlighted the company's impact on emissions reduction and job creation. "VinFast's development impact is so strong because it not only supports emissions reduction in some of the most polluted cities in Asia, but also creates world-class manufacturing jobs in an industry which, in Vietnam, is still emerging," Law stated.

The funding will support the expansion of VinFast's electric bus production, in addition to its existing manufacturing of electric cars and scooters. Finnfund's investment aligns with its e-mobility strategy, focusing on supporting innovation and capital investment in the electric automotive sector.