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

EVN Chairman Duong Quang Thanh and EIB Vice President Kris Peeters inked the MoU in Luxembourg on December 10 in the presence of Prime Minister Pham Minh Chinh, who was visiting the country.

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

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.

The EIB is the world’s biggest multilateral financial institution and one of the largest providers of climate finance.