Vietnamese electric vehicle maker VinFast has secured a $100-million green loan facility from MUFG Bank, marking the beginning of a long-term partnership between the two firms, per an announcement on Thursday.
The financing, structured as a green loan, will back VinFast’s growth and international expansion as it doubles down on its strategy to become a pure-play EV manufacturer. The company plans to channel the proceeds into projects aimed at strengthening its international footprint.
VinFast aims to strategically deploy the new capital on key projects to expand the company’s business and presence in Asia, promote revenue growth, and optimise costs to achieve long-term success.
“The inaugural $100-million green credit facility from MUFG Bank does not only bolster our financial capacity but also reaffirms our commitment to the global green energy transition. We value MUFG’s leadership in sustainable finance in Vietnam and look forward to developing a long-term and prosperous partnership,” said Pham Nguyen Anh Thu, Deputy CEO of Investment of VinFast.
Takao Nozaki, MUFG Bank’s Managing Director, Regional Head of Vietnam, said, “Our partnership with VinFast aligns with MUFG’s strategic priorities in promoting net-zero cooperation, supporting green transition and the growth of clean energy solutions globally.”
This first-time collaboration underscores MUFG’s confidence in VinFast’s groundbreaking vision, growth potential, and inspiring development story while promising to unlock future development opportunities.
The facility agreement between VinFast and MUFG Bank comes at a time when MUFG is playing a prominent role in promoting Vietnam’s sustainable development. As chairman of the Banking Working Group (2023-2025), MUFG has coordinated with Vietnamese ministries to organise specialised discussions on green finance, carbon credit mechanisms, startup support, and ESG initiatives, affirming its position as a crucial green finance bridge.
Double-digit growth in vehicle sales and total revenues was not enough to narrow Nasdaq-listed Vietnamese EV maker VinFast’s net losses in 2024. The car maker saw its net loss widen by 28.4% in 2024 to $3.18 billion, even as the cost of sales surged 66.6%, driven largely by increased product deliveries.
Operating expenses were mixed. Research and development (R&D) costs dropped 35% year on year to $412 million, attributed to reduced engineering and development spending following the completion of work on existing models.
Despite rising costs, VinFast posted strong topline growth. Total revenues reached $1.8 billion in 2024, up 57.9% from the previous year. Vehicle sales accounted for $1.6 billion of that, growing 58.1% year on year.
For the fourth quarter of 2024 alone, total revenue hit $677.9 million, up 69.8% from Q4 2023 and 33.8% from Q3 2024, powered by a 77.8% increase in vehicle sales to $634.5 million during the quarter.
