Vietnam has been granted a loan by the World Bank to invest in sustainable vehicles.

Part of the $124 million (£81.6m) funding will finance 28 buses in Ho Chi Minh City that will run on compressed natural gas, a cleaner fuel that reduces emissions and pollution.

The city, Vietnam’s principal economic hub, generates one-fifth of the nation’s GDP. Along with its surrounding region, it accounts for almost half of Vietnam’s total manufacturing output.

Arturo Ardila-Gomez, the World Bank’s Project Team Leader said: “To ensure continued strong economic performance and achieve Vietnam’s goal of successfully transitioning to middle-income status, the national government is seeking to address infrastructure constraints as one of its key strategic direction.

“Given HCMC’s pivotal role in the national economy, the project focuses on upgrading a key transport corridor to demonstrate the potential of a sustainable urban transport system.”