Vietnamese EV maker gets $1 billion in funding led by UAE

Vietnam’s electric vehicle manufacturer VinFast Auto is expected to receive at least $1 billion in overseas funding led by Emirates Driving Company (EDC), Abu Dhabi’s leading driver training and road safety institute, Bloomberg reported on October 30, quoting a source with knowledge of the agreement.

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VinFast and its parent company, Vingroup, earlier this week signed strategic partnerships with companies in the Middle East during an official visit of Vietnamese Prime Minister Pham Minh Chinh to the United Arab Emirates (UAE).

The memoranda of understanding (MOUs) cover strategic areas, including maritime development and shipyard building capabilities, sustainable coastal land utilization, digital transformation, and collaboration in electric vehicles and green transportation, VinFast said.

Under the deal between VinFast and Emirates Driving Company, EDC will lead a consortium investing in VinFast. In addition to gaining access to funding, VinFast will benefit from EDC’s expertise in driver training and road safety, supporting the development of a comprehensive EV ecosystem, the Vietnamese automaker said.

“This partnership aims to enhance global electric vehicle production, meet the growing demand for green transportation, increase road safety awareness, and reaffirm EDC’s commitment to contributing to the Middle East’s green transportation revolution, addressing environmental and climate challenges,” VinFast added.

Also this week, VinFast Auto officially launched in the Middle Eastern market as part of the company’s international expansion strategy.

While working on expanding EV manufacturing, Vietnam seeks closer cooperation with the Middle East in fuel supply and distribution.

Saudi oil giant Aramco is seeking to invest in oil refining and fuel distribution in the Southeast Asian country, where economic growth has exceeded the global average in recent years.

“Vietnam has great potential in the region, therefore, Aramco wishes to invest in oil refinery and petrol distribution in the country,” the government of Vietnam said in a statement carried by Reuters.

On Wednesday, Aramco signed a collaboration framework agreement with Vietnam Oil and Gas Group (Petrovietnam) to explore opportunities for cooperation in storage and the supply and trading of energy and petrochemical products.