USAID Director in Việt Nam Michael Greene and Nguyễn Văn Quyết, Director of Coca-Cola Vietnam Supply Chain at the signing ceremony. — VNA/VNS Photo

HA NOI (Biz Hub) — The US Agency for International Development (USAID) and Coca-Cola Beverages Vietnam Limited have signed a memorandum of understanding (MoU) aimed at increasing the use of renewable energy in Viet Nam.

The MoU was inked by Michael Greene, director of USAID in Viet Nam, and Nguyen Van Quyet, director of Coca-Cola Vietnam's supply chain, at a ceremony in Ha Noi on October 19.

Under this partnership, both organisations will work together to develop renewable energy-based power and thermal systems for industry facilities, including those of Coca-Cola Vietnam and improve industrial energy efficiency, while reducing the use of fossil fuels.

Both parties will also cooperate in developing and sharing successful models of adoption of renewable energy and practices of energy efficiency.

The partnership also seeks to improve clean energy development capacities and skills among experts and practitioners in small- and medium-sized industrial enterprises.

As one of the first activities, USAID will provide technical assistance to help Coca-Cola Vietnam install its first solar battery system on the rooftop of the plant in HCM City. It is expected to supply at least 20 per cent of the facility's power requirements.

Speaking at the event, USAID's visiting senior deputy assistant administrator for Asia, Gloria Steele, said, "As it enjoys rapid growth, Viet Nam's energy consumption is soaring. This energy is mainly generated from fossil fuels and this feeds into the root causes of global climate change.

USAID wants to help encourage clean-energy policies and expand market incentives and public-private partnerships that promote the use of renewable energy technologies and increase energy efficiency in Viet Nam, she said.

Quyet said Coca-Cola Vietnam is committed to growing as a sustainable business and aims to reduce the use of fossil fuel through a variety of initiatives, such as using compressed natural gas and biomass in manufacturing plants and solar energy for water heating.

The two parties are also collaborating on the Mekong Vitality project, to strengthen the social and economic status and empower 4,900 women in the southern Vinh Long province. This will be achieved by helping them increase their household income and savings, improving financial literacy, and building their confidence and decision-making power. — VNS