On the morning of August 14 in Hanoi, Vietnam Ministry of Industry and Trade and ADB signed the Memorandum of Understanding (MOU) on cooperation in the energy and power sector. 

Attending the ceremony were Deputy Minister of Industry and Trade Nguyen Hoang Long, ADB Country Director for Vietnam Shantanu Chakraborty, Director General of the Electricity Regulatory Authority of Vietnam Pham Nguyen Hung, along with leaders of functional units and representatives of international partners. 

This marks an important starting point for a new phase of cooperation between Vietnam and ADB, toward concrete goals in developing green, clean, and sustainable energy.

Fostering strategic cooperation and turning commitments into reality

Speaking at the event, Deputy Minister Nguyen Hoang Long affirmed that energy plays a pivotal role in the national development strategy. The Party, National Assembly, and Government of Vietnam have clearly set the goal of building a strong, prosperous, and enduring nation in the new era of development. In that journey, energy, particularly electricity, remains a key driver of industrialization, modernization, and socio-economic growth.

On July 10, 2024, the two sides engaged in open and candid discussions on potential cooperation directions in energy and power. After a period of close coordination, the signing of today’s MOU is the concrete step to realize the ideas agreed upon earlier.

According to the Deputy Minister, MoIT has been proactively advising on and developing legal and policy frameworks to foster the growth of the national energy sector, aiming to firmly ensure energy security while achieving a successful just energy transition. 

These efforts include amending the Law on Electricity, the Law on Efficient and Economical Energy Use; issuing and implementing the revised National Power Development Plan (PDP8), along with other relevant legal documents.

In addition, MOIT has always valued strengthening cooperation with international partners in scientific research, power technology development, technology transfer, and mobilization of financial resources. ADB has been a key partner, accompanying Vietnam in rural electrification programs, grid development, and investments in renewable energy, clean energy, and sustainable development projects.

"Within this cooperation framework, MOIT expects to continue receiving effective technical support from ADB in the near future, focusing on areas such as fuel conversion at thermal power plants; cross-border grid interconnection and electricity trade; development of battery energy storage systems (BESS), along with other initiatives to help Vietnam successfully achieve its energy transition and meet its 2050 carbon neutrality target, as committed at COP26 and in the Political Declaration on the Just Energy Transition Partnership (JETP)”, Deputy Minister Long emphasized.

The Deputy Minister also expressed confidence that with ADB’s support, the cooperation will deliver practical results and valuable research products, effectively applied in practice, contributing to the building of a green, clean, and sustainable energy sector for Vietnam.

Three cooperation priorities and ADB’s support commitments

Speaking at the signing ceremony, Director General of the Electricity Regulatory Authority of Vietnam Pham Nguyen Hung said that since the two sides agreed to discuss building a cooperation program in July 2024, chaired by Deputy Minister Nguyen Hoang Long, the Electricity Regulatory Authority and ADB’s representatives in Vietnam have worked tirelessly, holding numerous consultations, drafting, and thoroughly reviewing legal procedures to officially sign the MOU on energy and power cooperation.

“This MOU is not only a cooperation framework but also a symbol of the trust and shared aspiration of both sides to jointly shape a green, clean, and sustainable energy future”, Pham Nguyen Hung said.

According to Pham Nguyen Hung, the MOU focuses on three main priorities for the next five years. The first is to study and propose a roadmap for applying co-firing biomass, green ammonia, and green hydrogen technologies at coal-fired and gas-fired power plants, contributing to reducing greenhouse gas emissions and enhancing sustainability. 

The second is to develop regional grid interconnections, establish cross-border power transmission lines, promote cross-border electricity trade, and support the development of a strong and flexible power grid. The third is to expand the scale and improve the legal framework for battery energy storage systems (BESS), enhancing grid stability and adaptability as the share of renewable energy increases.

Pham Nguyen Hung stressed that the cooperation will go beyond research and technical assistance to include knowledge sharing, capacity building, and raising public awareness of energy transition. These steps align with PDP8 and contribute to Vietnam’s international commitments, including the 2050 carbon neutrality target.

On ADB’s side, Country Director Shantanu Chakraborty affirmed that Vietnam is an important partner in the bank’s energy support strategy. Since 1994, ADB has provided more than USD 2.6 billion in sovereign loans, USD 1.4 billion in non-sovereign loans, USD 35 million in technical assistance, and USD 3 million in grants. In 2021, under the JETP framework, ADB further committed USD 2.1 billion to support Vietnam.

According to Chakraborty, the MOU paves the way for a technical assistance program worth up to USD 1.4 million, including feasibility studies on fuel conversion, enhancing ASEAN grid connectivity, and developing energy storage systems. ADB will also roll out a knowledge-sharing platform, workforce training, and explore innovative financial solutions to mobilize resources from the government, state-owned enterprises, and the private sector. “This is not just a symbolic gesture but a concrete action plan to help Vietnam achieve its sustainable energy goals”, Chakraborty emphasized.