Vietnam Electricity (EVN) and the European Investment Bank (EIB) have signed a memorandum of understanding to create a prerequisite for the EIB to help with the Vietnamese group’s sustainable development and energy transition.

EVN Chairman Duong Quang Thanh and EIB Vice President Kris Peeters signed the MoU at the bank’s headquarters in Luxembourg on Saturday in the presence of Vietnamese Prime Minister Pham Minh Chinh.

The MoU is expected to open up an opportunity for the EIB to directly fund power projects in Viet Nam and enhance partnerships in electricity production, transmission, distribution and retail, as well as in energy transition.

Peeters described the MoU signing with the EVN as necessary for accelerating discussion and information exchange to pave the way for the bank’s participation in major energy projects in Viet Nam.

The EIB will assist with the country’s low-carbon transition to modern energy systems in tandem with ensuring economic growth, energy security, and environmental sustainability, he said.

For his part, Thanh noted the State-owned group has many potential projects on offshore wind power, hydropower, and electricity transmission eligible for the EIB’s sponsorship.

He expressed his hope that the cooperation will help Viet Nam boost low-carbon development, adapt to climate change, speed up just transition and carbon reduction in the power system, and generate new economic chances to support the country’s efforts towards net zero emissions. — VNS