The US International Development Finance Corporation and VinFast signed the letter of interest. — Photo courtesy of VinFast

The US International Development Finance Corporation (DFC) has signed a letter of interest (LOI) with electric vehicles maker VinFast considering the Vietnamese company's application for a US$500 million loan for expansion, VinFast said on Monday.

The signing took place on the sidelines of the 28th UN Climate Change Conference of the Parties (COP28) in Dubai.

The loan, which will be used to support VinFast's establishment of lithium-ion battery manufacturing facilities in Việt Nam, is subject to a comprehensive review and approval process by the DFC. The project will be the first in a series of sustainable transport development initiatives actively discussed by the two sides.

To receive the funding, VinFast will undergo comprehensive assessments based on various criteria, including strong economic and financial capabilities, compliance with the requirements of the DFC and relevant local regulations regarding developmental impact, environmental and social considerations, adherence to legal requirements and regulations, among other criteria.

The DFC highly valued VinFast's outstanding efforts in a series of projects, including the production of electric vehicles and lithium-ion batteries, and a nationwide charging station infrastructure.

The DFC is the US government's agency responsible for promoting private investment in developing countries. It focuses on projects that have positive development impact, environmental and social protection, uphold human rights and ensure labour rights.

Prior to VinFast, the DFC had announced a $737 million investment in Việt Nam, the largest investment in the Southeast Asia. The signing of the letter of interest with VinFast was considered a significant milestone that deepens the Việt Nam-US comprehensive strategic partnership. — VNS