Viet Nam promotes the Just Energy Transition Projects, advancing implementation of JETP Political Declaration

*

The meeting was chaired by Vice Minister of Industry and Trade Nguyễn Hoàng Long, on behalf of the Standing Agency of the JETP Secretariat. Members of the JETP Secretariat present included representatives from the Ministry of Finance (MOF), Ministry of Foreign Affairs (MOFA), Ministry of Agriculture and Environment (MAE), Ministry of Public Security (MPS), Ministry of Science and Technology (MOST), Ministry of Construction (MOC), State Bank of Viet Nam (SBV), and relevant departments of the Ministry of Industry and Trade (MOIT), alongside major energy-related enterprises: Viet Nam Electricity (EVN), Viet Nam National Industry-Energy Group (Petro Vietnam - PVN), and Viet Nam National Coal and Mineral Industries (TKV).

Among international partners, the meeting welcomed as IPG co-chairs Mr. Thomas Wiersing, Chargé d'affaires of the European Union to Viet Nam (EU), and Mr. Marcus Winsley, Deputy Ambassador of the United Kingdom to Viet Nam (UK) . Also in attendance were IPG representatives from Japan, the Federal Republic of Germany, the Republic of France, the Republic of Italy, Canada, Denmark, Norway, and multilateral development banks, alongside GFANZ representatives, and UNDP as the JETP Secretariat Support Agency (SSA). Representative from the embassy of Ireland also joined the meeting.

Participants reviewed the progress of JETP implementation since MOIT assumed the role of the Standing Agency of JETP Secretariat, including policy reforms to facilitate a just energy transition in Viet Nam, challenges affecting implementation of projects, and ongoing efforts among relevant parties to screen and select project proposals aligned with the JETP General Principles for resource mobilization. A project screening and selection process to ensure transparency and favorable conditions to all was also discussed and endorsed at the meeting. The online project submission module was also introduced to further feed the JETP project pipeline.

At the meeting, the Chargé d'affaires of the EU and the Deputy Ambassador of the UK, on behalf of the IPG, announced three (03) investment projects that have successfully secured agreements to mobilize capital under the JETP with IPG support so as to contribute to the JETP implementation:

• A EUR 67 million credit agreement between the National Power Transmission Corporation (EVN NPT) and the French Development Agency (AFD) to develop a 500kV transmission line running through Ho Chi Minh City (the former Binh Duong province) and Dong Nai province.
  
• An agreement on the terms and conditions for a credit facility worth EUR 480 million between EVN and six IPG-affiliated development financial institutions: France's Agence Française de Développement (AFD) and AFD's subsidiary Proparco, the European Investment Bank (EIB), Germany's Kreditanstalt für Wiederaufbau (KfW), Italy's Cassa Depositi e Prestiti (CDP), and the Japan International Cooperation Agency (JICA), to support the 1200 MW Bắc Ái Pumped Storage Hydropower Project in Khanh Hoa province (formerly Ninh Thuan province). The project also benefits from EUR 10 million of technical assistance, funded by the EU.
  
• A EUR 65 million loan agreement signed on June 26 between EVN and the German Development Bank (KfW) for the 200 MW expansion of the Tri An hydropower plant.

These initial results reflect the growing mobilization of domestic and international private and public finance to support long-term and large-scale investment for Viet Nam's just energy transition.

The remaining four (4) among the seven (7) initially identified JETP-aligned projects, with IPG support, continue to advance towards financial agreement. In addition, twenty-five (25) new project proposals were recently submitted for support, 17 of which have passed initial screening as aligned with the 4 JETP General Principles. The projects represent an investment need of approximately USD5.52 billion. With these additions, the JETP-aligned project pipeline has grown to twenty-four (24) projects with total investment needs of USD7.04 billion. Partners continue to engage in detail with interested project owners and stakeholders to advance financial negotiations.

IPG members, GFANZ, and development finance institutions reaffirmed their commitment and cooperation to supporting Viet Nam's just energy transition, sustainable growth, and greenhouse gas (GHG) emissions mitigation towards the goal of net zero emissions by 2050, and advancing an inclusive transition that leaves no one behind. In the coming time, IPG will coordinate with the Standing Agency of JETP Secretariat, and the JETP Secretariat Support Agency (SSA) to continue identifying JETP-aligned projects, particularly projects under the Implementation Plan of the revised National Power Development Plan VIII for the period 2021-2030, with a vision to 2050, which was issued by MOIT on May 30, 2025.

All parties agreed that the functioning of the JETP website to enable secure online submission of project proposals is a significant step that supports improved administration and coordination, facilitating networking and cooperation of international partners, financial institutions, investors and project developers.

Vice Minister Nguyễn Hoàng Long recognized the collective effort and expressed thanks to all parties for the collaboration in resolving challenges and difficulties, promoting the JETP implementation, which has resulted in initial encouraging results. MOIT and line ministries will continue promoting the improvement of current policy and regulatory environment, including ODA regulations, to support investor and enterprises involved in just energy transition operations in Viet Nam.

The IPG co-chairs reaffirmed the IPG's commitment to continue working closely with the IPG members, GFANZ and all international partners to accompany with the Government of Viet Nam to support the long-term partnership to facilitate the achievement of net-zero goal of Viet Nam by 2050.