EIB, Vietnam Sign Cooperation Agreement to Decarbonise Electricity Sector

On Saturday 10 December 2022, the European Investment Bank (EIB) Vice-President Kris Peeters welcomed Vietnamese Prime Minister Phạm Minh Chính and Chairman of Vietnam Electricity Duong Quang Thanh to the Luxembourg-headquartered EIB for a meeting and signing ceremony for a memorandum of understanding (MoU) between the EIB and Vietnam Electricity (EVN), the national electricity company of Vietnam.

This was Prime Minister Chính’s first visit to the EIB headquarters and followed a series of meetings with Luxembourg government officials.

During the visit, Vice-President Peeters highlighted the EIB’s willingness to further strengthen the relationship and cooperation between Vietnam and the bank, building on its existing experience in financing sustainable transport projects such as the Hanoi metro line and jointly financing projects contributing to climate change mitigation.

The MoU signed by Vice-President Peeters and EVN Chairman Thanh includes cooperation to enable the direct financing of power investment projects in Vietnam and strengthen partnerships in the fields of electricity generation, storage, transmission, distribution and sales, and also covers the energy transition towards decarbonisation. 

EIB Vice-President Peeters, who is in charge of the bank’s operations in Southeast Asia, said: “I am pleased to welcome the Vietnamese delegation, led by the Prime Minister of Vietnam Phạm Minh Chính, to the EIB headquarters. The meeting underlines our role as the EU climate bank as we support Vietnam’s efforts to become more resilient to climate change and promote key aspects of the European Green Deal. The signature of the memorandum of understanding with Vietnam Electricity is essential to accelerating technical and operational discussions, exchanging key information, and paving the way for the EIB’s potential involvement in major energy projects in Vietnam. We support the country’s low-carbon transition towards modern energy systems that can simultaneously ensure economic growth, energy security and environmental sustainability. I look forward to enhancing our cooperation and identifying financing opportunities in the areas of energy and climate action.”

EVN Chairman Thanh said: “EVN is a key state-owned economic group, playing a critical role in securing electricity supply in Vietnam. As part of the Vietnamese government’s target of achieving net zero emissions by 2050, EVN has been developing its own energy transition roadmap. As a result, many projects in the potential future investment pipeline such as offshore wind, pumped storage hydropower, hydropower expansion and transmission grids are eligible for EIB investment. The cooperation between EVN and the EIB is expected to support Vietnam’s low-emission and climate-resilient development, accelerate the just transition and the decarbonisation of the electricity system, and create new economic opportunities to support the country’s transition towards a net zero future.”

The EIB has worked closely with Vietnam since 1996, supporting the development of metropolitan commercial areas as well as smaller hydroelectricity projects and urban mobility. 

In 2022, EIB Global opened its office in Jakarta to reinforce and prioritise the bank’s financing for climate action, urban transport, healthcare, energy security and sustainable infrastructure projects in Southeast Asia, including Vietnam. 

As part of Team Europe, EIB Global will continue to work closely with the European Commission, the European External Action Service and European Union (EU) Member States to support EU external priorities in Vietnam, especially in helping the country to achieve the goal of net zero emissions and climate-resilient development.