VnEconomy - Vietnam Economic Times

A key to sustainable development

Sat, 18 Apr 2026 09:00:00 GMT

Now part of the business lexicon, ESG practices are a key element of investment considerations and must be given due regard.

The term CBAM - the EU’s Carbon Border Adjustment Mechanism - is no longer unfamiliar within Vietnam’s business community. As Europe begins imposing carbon taxes on energy-intensive products, the issue is no longer purely environmental but increasingly one of cost.

If carbon footprints cannot be reduced around the country, export costs may well rise by tens to hundreds of millions of dollars each year. This means that price competitiveness - once a key advantage for many Vietnamese companies - could quickly erode.

As a result, environmental, social, and governance (ESG) principles are no longer just about corporate social responsibility. For international financial institutions, ESG metrics are now becoming a critical factor in assessing risk and the cost of capital.

Rising standards from Europe.

At the “ESG as a Driver for Sustainable, Transparent and Inclusive Investment” session held within the recent EU-Vietnam Global Gateway Business and Investment Forum, Ms. Sunita Lukkhoo, Head of the European Investment Bank (EIB) for Southeast Asia and the Pacific, emphasized the growing importance of ESG in global investment decisions. “ESG is no longer about branding or voluntary reporting; it is about bankability, risk management, and long-term value creation,” she said. “Our approach has evolved over the years, and today it is really about long-term confidence,” she said.

Expanding on how ESG is operationalized in investment decisions, Ms. Lukkhoo explained that the EIB evaluates projects through multiple interlinked criteria to ensure long-term sustainability and resilience. “From the EIB’s perspective, there are four elements that we look at simultaneously,” she continued. “First is robust climate alignment and transition credibility, as any project we finance must clearly fit into a low-carbon future. This means having credible transition plans and avoiding lock-in to high-emission assets that could quickly become obsolete.”

She added that this approach reflects a broader institutional shift toward stricter climate standards. “At the EIB, we stopped financing elevated fossil fuel projects in 2019, and in 2021 were the first and only multilateral development bank to have all our operations fully Paris-aligned,” she said.

Beyond climate considerations, environmental and social safeguards are equally critical in mitigating investment risks. “Strong environmental and social safeguards are not a luxury, they are essential,” she noted, emphasizing that projects need to respect communities, protect nature, manage water and pollution responsibly, and ensure that fair labor practices are in place. “This is not about being overly cautious, but about avoiding real-world risks, because when issues arise, whether community opposition, legal challenges, reputational damage, or cost overruns, they can derail even very promising investments.”

Weak ESG performance remains one of the most common reasons projects fail. In addition, climate resilience has now become a fundamental requirement rather than an optional consideration. “Climate risk is no longer abstract,” she said. “If resilience is not built in from the beginning, the project is simply not bankable.”

Finally, beyond sustainability and risk management, projects must also demonstrate clear economic value and measurable impact. Strong economic fundamentals remain essential, and investors increasingly expect clarity on impact and outcomes. Transparency builds trust and lowers financial risk.

Ms. Lukkhoo also noted that the EIB is continuing to refine its frameworks to better assess and track these outcomes. “Ideally, we use our additionality and impact measurement framework, and we are also developing specific climate and systemic results metrics to embed in our projects with our partners,” she explained.

Meanwhile, Mr. David Ambadar, Project Director at GIZ Vietnam, pointed to Europe’s experience as a reference for how ESG can be effectively implemented at scale. “The European experience shows that ESG is driven by several key elements,” he told the Forum. “First, you need a clear regulatory framework, and with that comes greater transparency. Another crucial factor has been incentives - strong incentives to help projects overcome initial hurdles, followed by additional mechanisms and instruments such as financial guarantees.”

He added that beyond policy and financial tools, a further important element is public awareness of the challenges relating to climate change and energy. Energy security, ultimately, means investing in renewables. Combined with market pressure, these factors have pushed Europe to where it stands today.

From a policy perspective, he went on, Vietnam needs to continue closing the gap between its strong policy ambitions and actual implementation.

Financial factors matter.

On the incentive side, Mr. Ambadar pointed to the need for more targeted mechanisms to support early-stage green projects. He suggested that moving forward with the proposed 2 per cent incentives, while building on existing efforts, could help accelerate implementation. At the same time, clearer regulations and more detailed guidance will be essential to translate policy ambition into practice, alongside additional fiscal and monetary support.

He also underscored the importance of reducing financial risks to unlock greater private sector participation. Expanding de-risking instruments, such as guarantees and first-loss structures, would make green projects more attractive and viable for investors.

More broadly, he emphasized that the challenge extends beyond promoting sustainability. Projects must meet the expectations of both investors and lenders, with the ultimate goal of moving initiatives from being merely “worthy” to becoming truly “financeable.”

From a banking perspective, Ms. Nguyen Ngoc Hai Thanh, Senior Expert in Corporate Strategy and Partnership Management at Techcombank, pointed out that while initial steps toward green finance have been taken, significant challenges remain on both the supply and demand sides.

Drawing on feedback from small and medium-sized enterprises (SMEs), she noted that the current stage reflects only the “necessary conditions” for green finance, while more fundamental barriers, both within businesses and the broader institutional framework, still need to be addressed to reach “sufficient conditions.”

For enterprises, access to green finance begins with their ability to clearly define and validate projects. Businesses must understand what they aim to achieve and how their plans align with green standards. While many companies have long-term ambitions, the key challenge lies in demonstrating that projects meet recognized green criteria, an essential step before financing can be unlocked.

In this context, Ms. Thanh highlighted the evolving role of banks, which are increasingly expected to go beyond capital provision and take on a more active advisory function, particularly for SMEs that often lack the resources to structure green projects from the outset. In response, Techcombank is developing an AI-powered tool designed to support businesses based on financial reports and initial project descriptions.

The tool will offer a preliminary, standardized assessment aligned with Vietnam’s green taxonomy, enabling companies to gauge the “green potential” of their projects and how well they meet the criteria under the Prime Minister’s Decision No. 21/2025/QD-TTg on environmental criteria and certification of investment projects under the green taxonomy. Beyond this initial screening, the bank aims to work more closely with businesses, guiding them through the process of aligning with standards and accessing government support and green financing mechanisms.

Ultimately, Ms. Thanh emphasized that the challenge is not only to identify green projects but to ensure they are both sustainable and financially viable, turning them into initiatives that deliver real, measurable value.

VET-Anh Hoang

Project launched to improve access to climate technology finance

Sat, 18 Apr 2026 04:00:00 GMT

The initiative aimed to boosting Vietnam’s readiness to achieve net-zero emissions.

A new project aimed at boosting Vietnam’s readiness to achieve net-zero emissions was officially launched in Hanoi on April 17, with a focus on improving access to climate technology finance for small and medium-sized enterprises (SMEs) and startups.

The initiative is jointly implemented by the Ministry of Finance, the Korea International Cooperation Agency (KOICA) and the Global Green Growth Institute (GGGI) Vietnam. It will prioritise key activities such as developing a pipeline of potential investment projects, launching acceleration programmes for climate-tech enterprises, and providing training, advisory services and connections to domestic and international investors.

The project will also develop toolkits to help classify green projects, propose policy recommendations, and integrate green transition goals into local socio-economic development plans.

Experts noted that while Vietnam has made significant progress in improving policy frameworks and the investment environment, challenges remain in scaling markets and accessing finance, particularly for smaller firms.

Funded by KOICA and implemented by GGGI through 2027, the project is expected to address both immediate business needs and structural bottlenecks in climate finance.

It will focus on high-potential sectors including agriculture, the circular economy, waste management, transport and energy, while fostering stronger links between businesses, investors and international partners to support sustainable growth.

VnEconomy-Hoàng Sơn

Opportunities for Vietnam from European Climate Law amendments

Fri, 17 Apr 2026 10:00:00 GMT

Benefits will flow to Vietnam if it can adhere to recent amendments to the European Climate Law setting new 2040 targets.

The Council of the European Union (EU) has formally adopted amendments to the European Climate Law, introducing a binding mid-term target for 2040 that commits the bloc to reducing net greenhouse gas emissions by 90 per cent compared to 1990 levels. The move is widely seen as a critical step in reinforcing the EU’s pathway toward economy-wide climate neutrality by 2050.

The new target is expected to both increase pressure and create opportunities for Vietnam to accelerate its green transition and adapt to increasingly stringent climate standards in the European market.

Reshaping Vietnam’s exports

According to Dr. Nguyen Phuong Nam, International Reviewer for Climate Change Reports under the United Nations Framework Convention on Climate Change (UNFCCC) and CEO of Klinova, the 90 per cent emissions reduction target for 2040 is not a standalone figure. Rather, it represents the next step in the long-term roadmap of the European Green Deal; the EU’s overarching strategy to become a carbon-neutral continent by 2050.

In this context, the 2040 target serves as an “acceleration milestone,” signaling that climate requirements will become increasingly stringent and mandatory in global trade. The implications for Vietnam’s key export sectors are expected to be significant and multi-dimensional.

High-emissions industries such as steel, cement, aluminum, and textiles will face direct pressure from mechanisms like the Carbon Border Adjustment Mechanism (CBAM). As the EU gradually incorporates carbon costs into import pricing, Vietnam’s cost-based competitive advantage could erode without a timely transformation.

Carbon transparency requirements are also expanding beyond individual companies to encompass entire supply chains. The EU is placing growing emphasis on the full “carbon footprint” of products, from inputs to final output. This presents a major challenge for sectors such as textiles, footwear, and agriculture, which rely on complex and often unwieldly supply networks.

From a market perspective, green consumption trends in the EU are accelerating. European consumers and distributors increasingly prioritize products with sustainability certifications, low emissions, or carbon neutrality. Vietnamese businesses that transition early may not only retain market access but also tap into higher-value segments, thereby enhancing export value. “The EU’s 2040 target is essentially a strong and anticipated policy signal, since the European Green Deal was launched in 2019, about restructuring global trade toward a low-carbon model,” Dr. Nam said.

He added that, over the long term, the EU may prioritize partnerships with countries that demonstrate credible emissions reduction pathways. “This is not just about cost pressure, it reflects a fundamental shift in market demand, requiring Vietnamese businesses to move from cost-based competition to competition based on sustainability.”

New opportunities

Under the revised law, from 2036 onward, high-quality international carbon credits may be used, but only up to 5 per cent of the EU’s 1990 net emissions, with at least 85 per cent of reductions required to occur domestically. These credits must be based on credible emissions reduction activities in partner countries and aligned with the Paris Agreement.

Dr. Nam noted that the EU’s consideration of international carbon credits is a noteworthy signal, indicating that global carbon markets are becoming more interconnected rather than operating in isolation. However, he stressed that this opportunity will not come automatically. The key lies in ensuring the quality and transparency of carbon credits. The EU will only accept credits that meet strict standards for measurement, reporting, and verification (MRV). Vietnam’s shift from planning to implementing a domestic carbon market is therefore a positive step.

Mr. Do Duc Tien, Co-founder and CEO of NAYAN Sustainability Social Enterprise, said the policy changes present a “golden opportunity” for Vietnam, given its strong potential in forest-based credits (such as REDD+), low-emission agriculture, and carbon capture and storage (CCS) projects. However, this also requires Vietnam to rapidly develop its domestic carbon exchange and bring itself in line with international standards.

The country should learn from its experience with the Clean Development Mechanism (CDM), where it ranked fourth globally in project numbers, at around 260, but had a relatively low issuance rate due to procedural and verification challenges.

To avoid repeating a “quantity over quality” scenario, Vietnam needs a clear roadmap focused on improving credit quality to meet stringent EU criteria, particularly regarding permanence and additionality. Building a robust MRV system aligned with international standards will be essential not only to leverage natural advantages but also to ensure that carbon projects contribute meaningfully to sustainable development. This could position Vietnam as a credible destination for green capital flows from Europe, rather than merely a supplier of low-cost credits.

Dr. Scott McDonald, Lecturer in Logistics and Supply Chain Management at RMIT University Vietnam, noted that analysts project the EU could spend €50 billion ($58 billion) on carbon credits in the 2030s, which underscores actual demand. Vietnam’s strengths in forestry, mangrove restoration, and renewable energy align well with EU priorities. The country has also signed bilateral agreements with Singapore, Japan, and South Korea under Article 6.2 of the Paris Agreement for emissions trading. He emphasized that credit quality will be the decisive factor, with MRV readiness serving as the “gateway” to entering the EU market.

Policy lessons for Vietnam

Drawing from the EU’s climate law framework, Dr. Nam highlighted policy consistency and long-term vision as the most important lessons. The EU has not only set targets but also built a comprehensive legal framework, from climate law to carbon markets, sectoral standards, and financial mechanisms, all aligned with the 2050 neutrality goal.

Another key feature is the legally-binding nature of climate targets. Codifying commitments puts stronger enforcement pressure on governments and businesses while providing stable market signals for long-term investment decisions.

Despite having a unified EU framework, member states retain flexibility to develop national laws and roadmaps tailored to their domestic contexts, translating overarching goals into country-specific long-term strategies. This approach enables each country to fulfill its responsibilities while contributing to the bloc’s collective target. “For Vietnam, the priority is not just to introduce more policies, but to ensure coherence, feasibility, and clear roadmaps,” Dr. Nam said. “A stable and transparent policy framework will provide a solid foundation for achieving the country’s 2050 net-zero target.”

Dr. McDonald added that the EU’s binding 2040 target is already shaping investment decisions. Vietnam’s own net-zero commitment by 2050 similarly requires a strong legal anchor. He pointed to the EU’s phased expansion of its Emission Trading System, known as ETS2 and covering buildings, transport, and small-scale industries from 2027, as a structured approach that Vietnam can learn from, particularly in moving from pilot phases to full implementation.

At the same time, local-level policy implementation will be critical. Cities and provinces need to proactively develop emission reduction plans suited to their socio-economic conditions, integrating climate goals into development planning. “This is how national commitments can be translated into concrete local action, making the overall target more achievable,” Dr. Nam said.

Vietnam’s own net-zero commitment by 2050 requires a strong legal anchor.

Dr. Scott McDonald, Lecturer in Logistics and Supply Chain Management at RMIT University Vietnam

VET-Ngoc Lan

For green public transport

Thu, 16 Apr 2026 10:00:00 GMT

A preference for green public transport options will only take hold around Vietnam as networks and services become more integrated and convenient.

Transport has long been seen as a backbone of connectivity and economic expansion, but at the same time has also hit various stress points: rising energy demand, higher emissions, and increasingly costly operations. Amid environmental constraints, requirements in economic efficiency, and international commitments, the transport sector is being pushed into a deeper phase of transformation. The question is no longer whether to go green, but how to go about it.

Pressure to change

Air pollution and volatile transport costs are forcing the sector to adapt. Recent geopolitical developments have driven sharp fluctuations in domestic fuel prices, leading to immediate shifts in travel behavior. According to Mr. Le Bang An, CEO of Hanoi Metro, ridership on the Cat Linh - Ha Dong metro line rose by nearly 5 per cent following a fuel price adjustment, while the Nhon - Hanoi Station line saw an increase of more than 13 per cent. These figures suggest that when costs rise, commuters are willing to switch, provided viable alternatives exist.

However, transport experts argue that price is not the decisive factor. The key lies in overall convenience. People will only shift to public transport when journeys are seamless and efficient. When metro lines, bus networks, and feeder services are effectively integrated, modal shifts occur naturally rather than through administrative measures.

Experts have noted that the green transition is a multi-stage process. On one hand, emissions intensity from existing vehicles must be reduced, while on the other the adoption of new-energy transport must accelerate. At the same time, building a multimodal ecosystem, which means integrating different transport modes into a unified system, is seen as critical. This holistic approach underscores that transformation is not about isolated substitution, but about restructuring the system across multiple layers.

International experience shows there is no one-size-fits-all solution. Japan and Germany have pursued selective modernization, avoiding mass electrification to prevent disruption to domestic industrial chains. Singapore, meanwhile, prioritizes smart infrastructure to manage transport demand rather than simply limiting vehicle numbers. These approaches highlight that technical solutions must align with economic conditions and policy frameworks to deliver meaningful results.

Fragmented system

Over the past two decades, Vietnam’s transport infrastructure has expanded rapidly, strengthening regional connectivity and economic integration. However, this growth has largely been quantitative. Links between different transport modes have lagged behind. As a result, logistics costs remain high, energy consumption is significant, and emissions continue to rise, exposing the limits of a growth model based solely on infrastructure expansion.

Innovation is emerging across subsectors, but has yet to create systemic impact. In rail, companies are beginning to transition locomotive and rolling stock energy systems. Vietnam Railways has outlined a roadmap to gradually replace diesel locomotives with electric or cleaner alternatives, starting at the pilot scale. This signals a shift away from traditional operations toward lower-emission models.

Urban rail networks in Hanoi and Ho Chi Minh City are also increasingly positioned as the backbone of urban mobility. Mr. Khuat Viet Hung, Chairman of Hanoi Metro, believes a fully-operational metro network could cut hundreds of thousands of tons of CO₂ annually. However, these gains depend on integration with bus networks and feeder services. Without such connectivity, their broader impact remains limited.

On the roads, the biggest challenge lies in scale and usage patterns. With around 7 million cars and nearly 80 million motorbikes, Vietnam faces a vast and highly fragmented base of private vehicles. Electric buses, taxis, and motorbikes are emerging, but high upfront costs, long charging times, and battery replacement expenses remain major barriers, according to transport operators. In the short term, electric vehicles are unlikely to fully replace conventional vehicles.

In logistics, structural challenges are even more pronounced. Logistics costs account for around 16-20 per cent of GDP; significantly above the global average. The main cause is a lack of integration across transport networks, forcing goods through multiple intermediaries, extending transit times, and increasing both costs and emissions. Some firms have experimented with coastal shipping, reporting emission reductions of up to 75 per cent compared with road transport, alongside notable cost savings.

At the same time, multimodal logistics projects are gradually taking shape, linking road, rail, seaports, and aviation within unified systems. This marks a shift from fragmented infrastructure development toward network-based thinking, where efficiency depends on overall connectivity rather than individual components.

The aviation sector faces its own transition challenges. With high emissions intensity per unit transported and limited electrification potential, aviation relies primarily on operational optimization, fleet modernization, and research into sustainable aviation fuel. Many major airports have deployed electric ground equipment and smart energy management systems. The sector’s capacity for deep emissions cuts, however, remains constrained.

Overall, innovation is visible across infrastructure, technology, and operations. Yet without a strong overarching design to connect these elements, the system remains fragmented. This lack of integration not only undermines investment efficiency but also limits the broader impact of green transition efforts across the economy.

Structural challenges

Recent developments underscore the limits of piecemeal greening. Replacing vehicles, while necessary, cannot drive transformation on its own if infrastructure and operational models remain unchanged. Without structural reform, even advanced technologies can only play a supporting role, with limited system-wide impact.

On the policy front, Vietnam has established a framework for green transport through laws, decrees, and strategies on emission reductions and sustainable development. However, according to the Ministry of Construction, the main challenge lies not in direction but in implementation. Gaps between institutions, technology, and public awareness are creating a disconnect between policy goals and real-world outcomes.

Addressing this requires restructuring the transport network toward a multimodal model. When road, rail, inland waterways, and aviation are effectively integrated, transport costs fall, and emissions can be better controlled across the entire chain. This forms the foundation for an optimized system, replacing today’s fragmented links.

Financing remains a decisive factor for large-scale infrastructure projects. Green infrastructure requires substantial upfront capital, long payback periods, and carries high risk, making investment mobilization difficult. Public-private partnerships and green finance are expected to play a key role, but attracting long-term capital will require clear risk-sharing mechanisms and a stable investment environment.

For businesses, green transition goes beyond fleet upgrades to encompass full business model transformation. Industry representatives emphasize the need for strong early-stage support policies, from tax incentives to credit tools, to ease investment burdens and enable adaptation. Without such support, private sector engagement will remain limited.

Technology continues to play an important enabling role, though it is not the ultimate determinant. AI, big data, and smart coordination platforms can optimize operations, reduce energy consumption, and improve efficiency. However, their effectiveness depends on being deployed within a well-structured, integrated transport system.

Ultimately, user behavior remains central. Reliance on private vehicles, particularly motorbikes, still dominates mobility patterns in major cities. A shift toward greener options will only occur when alternatives are convenient, accessible, and capable of meeting daily travel needs.

In this context, green transport is no longer about individual projects or standalone technologies. It is about reorganizing the entire transport system, where changes in infrastructure, logistics, and policy reshape how the broader economy functions.

VET-Huynh Dung

Next wave of energy transition

Wed, 15 Apr 2026 10:00:00 GMT

Vietnam Economic Times / VnEconomy gathered the thoughts of EU and global partners on how Vietnam can turn its natural advantages into large-scale renewable investment and energy security.

Mr. Tibor Stelbaczky, Ambassador-at-Large, Principle Adviser on Energy Diplomacy at European External Action Service

I would like to mention three additional perspectives at the policy level regarding the Just Energy Transition Partnership (JETP).

Firstly, the JETP is built upon the shared goals of Vietnam and the International Partners Group (IPG), which is to achieve net-zero emissions by 2050, implementing the Paris Agreement and working toward this goal. Based on that shared goal, this is the best way to realize the principle of shared but differentiated responsibilities in implementing the Paris Agreement. This is a commitment from the IPG and the G7 to support Vietnam, and also a commitment from Vietnam to move toward net-zero emissions. Clearly, this is in the common interest of all participating parties, and we are very much looking forward to continuing cooperation to promote the meaningful and effective implementation of the JETP.

The second is that the “P” in JETP stands for “Partnership”. This signifies close cooperation between us and Vietnamese authorities, government, companies, and stakeholders. I think it is very important to gain experience from each other. Vietnam’s economic growth is remarkable - even fantastic. However, IPG countries also have a lot of experience in energy transition, and we are ready to share this experience and lessons with Vietnam. More importantly, it is not just about sharing experience, but also about being ready to invest and provide concrete support, from financial to technical assistance, to achieve tangible results in the implementation of the JETP.

Thirdly, in the past few years, especially since the signing of the Political Declaration in 2022 and the development of the Resource Mobilization Plan, as well as initial projects in place, the JETP has always been seen as an opportunity for Vietnam to leverage support from the IPG. However, in the current volatile context, this is no longer just an opportunity but a pressing need not only in Vietnam but also in many other countries, including IPG countries.

As the global energy market undergoes significant changes, shifting toward domestic energy sources such as renewable energy, while investing in energy storage, batteries, and grid development, becomes a necessary direction. This is not only a way to ensure the necessary energy supply to support economic growth, but also to ensure energy security and reduce external dependence. This is a common challenge for both Europe and Vietnam.

Therefore, we believe that moving toward greater renewable energy deployment and all investments in this sector, such as storage and grid development, as well as related regulatory measures and reforms, is the best way to ensure energy security, sustain impressive economic growth, and support Vietnam’s catch-up process - a mutual goal of both the IPG and Vietnam.

Mr. Alessandro Antonioli, Vietnam Country Manager at Copenhagen Offshore Partners

Vietnam is extremely competitive when it comes to the use of natural resources for renewables, because it is blessed with good wind and good solar radiation.

We expect the cost of renewable energy to progressively decrease, and Vietnam is very well positioned to capture a huge amount of these resources. This is the real “oil” of Vietnam, and is where the country should invest more in terms of cost competitiveness. It is a very fortunate coincidence that you have a well-established industry, especially in offshore engineering. This leads me to think that Vietnam is going to be, in the near term, if things go well, a regional power when it comes to offshore wind, because it can capture most of the benefit not just from generating power, but also from manufacturing the components in the country. So there is a double benefit in growing a local supply chain and also managing to get clean, affordable, and available power from resources.

The domestic market was relying on local loans to finance small-scale renewable energy projects. Now, as the technology becomes more complex and requires more capital, this is not enough to scale up the renewable energy system. So Vietnam needs to attract more international capital, about $130 billion by 2030, 90 per cent of which has to come from private capital.

To do that, Vietnam needs to provide guarantees to international investors: that they can invest safely, extract dividends, receive fair tax treatment, and resolve disputes in international forums. It is also important to ensure an appropriate level of returns for investors who take risks in a still immature regulatory framework for large-scale renewable energy.

Grid infrastructure remains a constraint on renewable energy expansion to the extent that there are physical bottlenecks. There needs to be more capacity and more battery storage, and this requires the right policies and incentives for both infrastructure and generating assets. We expect upcoming policies to provide more clarity.

Another important element is pricing mechanisms. This is still at an early stage, and the right mechanisms for renewable energy are not yet fully developed. We have seen what happened in the past with feed-in tariffs. The hope is to learn from that and move toward more dynamic and risk-mitigated pricing mechanisms.

Copenhagen Infrastructure Partners has been here for many years, and this point in time feels like a moment of truth. There is a new government, new ambition, and some policy development over the last year.

If Vietnam maintains the pace and keeps the focus on shifting the energy system from carbon-based and hydrocarbon-based sources to renewable energy with battery storage, then it will see a completely different future in the near term.

Mr. Nguyen Phan Dinh, Vietnam Market Director at EDP Global, Head of EuroCham’s Energy Working Group

European businesses can make significant contributions to Vietnam’s energy transition in three main areas. First, their experience in policy and legal frameworks. With over 30 years of renewable energy development, Europe has accumulated a solid foundation, from establishing grid standards and carbon pricing mechanisms to liberalizing the electricity market. Through organizations like EuroCham, the European business community also contributes ideas, promotes reforms, and improves the investment environment.

Second, their system integration capabilities and technical expertise. European countries have extensive experience operating energy systems with a high proportion of renewable energy, particularly in managing the intermittent nature of power sources such as wind and solar. These are practical capabilities that European businesses can transfer to and support Vietnam with.

Third, their abundant green capital. When projects achieve financial viability, European banks and financial institutions are ready to provide significant funding to the Vietnamese market.

A prerequisite for attracting this capital flow is policy consistency and the stability of the legal framework. Changes that could reverse previous commitments, such as retroactive collection mechanisms, will directly affect investor confidence. Meanwhile, confidence is a key factor, especially since renewable energy projects typically have a lifespan of 10-20 years.

In the current context, Vietnam identifies renewable energy as a strategic direction to ensure energy security. However, to realize this goal, in addition to technological investment, building a stable and predictable long-term legal framework is crucial to strengthening confidence and attracting large-scale investment.

Ms. Anna Gibson, Climate Counsellor at the British Embassy in Vietnam

We saw the signing of a credit agreement for grid transmission infrastructure, aimed at enhancing transmission capacity and integrating renewable energy. Alongside this were a loan agreement for a hydropower expansion project and the breaking-ground ceremony for the Bac Ai pumped-storage hydropower project. These are all significant milestones. These advances demonstrate how international public financing can be used to drive the next wave of energy transition projects in Vietnam, while also paving the way and facilitating deeper private capital participation in the market.

Alongside these asset projects, we also witnessed the signing of financing agreements within the framework of the Just Energy Transition Partnership (JETP) over the past year. These include green financing packages, such as a $200 million grant for energy transition between the European Investment Bank (EIB) and Techcombank, as well as a $350 million green investment package from VPBank with support from development finance institutions within the International Partners Group (IPG), including the UK, Canada, and Japan.

Clearly, there has been progress and momentum for the JETP, but much remains to be done. Many agreements are underway, and technical assistance is in the works. A crucial part of the JETP is how to effectively combine tools - from technical assistance, development finance, public finance to private finance - to create synergistic, catalytic impacts and drive a substantive transformation of Vietnam’s green, clean, and sustainable energy system.

VET -Vietnam Economic Times

Investors selected for $5 bln Can Gio port project in HCM City

Wed, 15 Apr 2026 07:30:00 GMT

The project is planned to span approximately 571 ha with a main wharf length of 7.5 km. Its design capacity is projected to reach 4.8 million TEUs by 2030, eventually scaling up to 16.9 million TEUs by 2047.

The Ho Chi Minh City People’s Committee has formally approved the investor consortium for the Can Gio International Transshipment Port, a mega-project with a total investment capital of nearly VND129 trillion (nearly $5 billion).

The joint venture selected to implement the project includes the Vietnam Maritime Corporation (VIMC), Saigon Port Joint Stock Company, and Terminal Investment Limited Holding S.A (TiL).

The project is planned to span approximately 571 ha with a main wharf length of 7.5 km. Its design capacity is projected to reach 4.8 million TEUs by 2030, eventually scaling up to 16.9 million TEUs by 2047.

In the initial stage, the port will feature two to four berths capable of receiving vessels with a deadweight tonnage of up to 250,000 tons. By 2050, the facility is expected to expand to 13 berths, accommodating the world’s largest container ships as conditions permit.

The entire development is scheduled for completion within 20 years of the land handover, with the first phase aiming to complete at least two berths by 2030. The project has been granted an operational term of 50 years.

The approval decision sets out several strict binding conditions for the investors. Notably, the consortium is prohibited from transferring the project during the first 10 years and must disburse a minimum of VND50 trillion (nearly $1.9 billion) within this period. Should the investors fail to meet capital requirements, progress milestones, or other conditions, they may lose access to preferential investment mechanisms granted under the National Assembly’s special policy framework.

Furthermore, the project must adhere to rigorous environmental standards given its proximity to the Can Gio Mangrove Biosphere Reserve. It is also required to meet strict national defense and security regulations while implementing advanced green and smart port technologies.

Following the Prime Minister's earlier approval of the project's investment policy, the finalization of the investor selection provides the foundation for the city to host a formal kick-off ceremony and officially announce strategic partners on April 30.

Vneconomy-Thanh Thủy

Vietnam’s offshore wind power landscape

Wed, 15 Apr 2026 06:00:00 GMT

Vietnam’s offshore wind power development has picked up pace over recent years on the back of new policy and legal instruments and is set to be a key player in power generation.

Vietnam’s offshore wind power landscape has undergone a notable transformation over recent times. After a prolonged period of near policy stagnation, the industry is now showing clear signs of acceleration, aligned with the targets set out in the revised National Power Development Plan for 2021-2030, with a vision to 2050 (PDP8), alongside National Assembly Resolution No. 253/2025/QH15 on mechanisms and policies for national energy development in the 2026-2030 period.

Specifically, under the revised PDP8, Vietnam aims to achieve a total offshore wind capacity of approximately 6,000-17,032 MW to serve domestic demand, with projects expected to come into operation between 2030 and 2035. Over the longer term, by 2050, total installed capacity is projected to rise to between 113,503 and 139,097 MW, reflecting strong ambitions to position offshore wind as a cornerstone of the national energy system.

Investment barriers

Vietnam is widely regarded as possessing highly-favorable preconditions for offshore wind development, comparable to those of Taiwan (China) 10-15 years ago in the early stages of its industry. On that foundation, the Vietnamese market is increasingly attracting strong interest from international investors, not only in project development but across the entire value chain, from equipment supply and technical services to supporting infrastructure.

However, as highlighted by speakers at the “Offshore Wind in Vietnam: Unlocking Southeast Asia’s Largest Clean Energy Opportunity” discussion session held within the framework of the EU-Vietnam Global Gateway Business and Investment Forum on March 24, policies related to survey licensing, project site allocation, and approval procedures for offshore wind projects in Vietnam remain insufficiently clear and consistent. This lack of clarity has made it difficult to establish a seamless development pathway from early-stage exploration to construction.

Therefore, the situation not only delays investment decision-making but also significantly heightens risk exposure, particularly given that offshore wind projects typically require seven to eight years to progress from early-stage preparation to full commercial operation. The long development timeline means that investors must commit capital well in advance, often without full visibility on future regulatory or market conditions.

For large-scale projects, which can reach capacities of up to 1,000 MW and require total investment of around $4-$5 billion per project, such uncertainty becomes even more critical. Any ambiguity in policies, licensing procedures, or approval processes can disrupt financial planning, complicate project financing, and ultimately undermine investor confidence. As a result, even well-prepared projects may struggle to secure funding, making policy clarity and consistency a decisive factor in attracting sustained international capital flows.

In addition, technical infrastructure and implementation capacity present further challenges to offshore wind development in Vietnam. Currently, the country’s port system, shipyards, and installation fleets remain insufficiently equipped to meet the logistical demands of large-capacity wind turbines and complex offshore structures.

According to Ms. Le Thi Phuong Nhi, Country Manager of Siemens Energy Vietnam, offshore wind development must be approached holistically across the entire value chain. Turbine manufacturing represents only one link, while other foundational elements, such as port infrastructure, logistics systems, and offshore technical services play equally critical roles in ensuring project viability. “Though Vietnam already has a relatively developed port system, it still requires upgrades to meet the specialized technical requirements of the offshore wind industry,” she emphasized.

Similarly, Mr. Alessandro Antonioli, CEO of Copenhagen Offshore Partners and Senior Representative of Copenhagen Infrastructure Partners in Vietnam, pointed out that one of the major bottlenecks lies in the capacity of the power grid. Offshore wind power development is not limited to generation but also requires large-scale investment in and upgrading of transmission infrastructure. Meanwhile, Vietnam’s power grid planning and investment progress have yet to keep pace with the rapid expansion of power generation. Without timely upgrades, even well-prepared projects may face risks of curtailment or delays in grid connection, directly affecting investment efficiency.

Mr. Antonioli noted that while the policy framework is gradually improving, not all investors are ready to enter Vietnam’s offshore wind market under existing conditions. Unless these issues are addressed systematically through policy reforms, infrastructure investment, and targeted capacity building, the pace of offshore wind development may fall short of the ambitious targets set out in the revised PDP8.

Ensuring clarity

In order to attract foreign investment, Vietnam needs to establish a policy and market ecosystem that is transparent, stable, and highly predictable, thereby fostering long-term investor confidence. In addition to refining the legal framework and upgrading infrastructure, investors particularly emphasize the importance of “strategic partnerships” between domestic and international enterprises in offshore wind development.

For foreign investors, this is not merely a process of technology transfer followed by disengagement. Rather, it should be structured as a long-term collaborative relationship in which all parties participate and share value throughout the entire project lifecycle. “Such cooperation can begin with planning and plant design, extend to supply and manufacturing, followed by transportation and logistics solutions, and continue through pre-assembly, installation, commissioning, and ultimately operations and maintenance,” Ms. Nhi explained.

Adding a practical perspective, Mr. Antonioli suggested that several core conditions must be ensured from the outset for offshore wind projects in Vietnam to be implemented successfully.

In particular, offshore wind power projects must be designed to be sufficiently “bankable,” meaning they meet the necessary criteria to attract financial institutions. This requires clear allocation of roles and responsibilities among stakeholders, particularly the power purchaser, along with appropriate financial guarantee mechanisms, which may involve domestic banks or State-backed institutions. At the same time, a transparent and stable pricing mechanism is also essential to build investor confidence.

Moreover, offshore wind development in Vietnam demands a fundamentally different and more structured, long-term, industry-building approach. This includes synchronized investment in infrastructure, especially port systems (notably in northern Vietnam), as well as the development of a capable domestic supply chain to support sustainable industry growth. “If the Ministry of Industry and Trade, along with State-owned enterprises and private developers, can come together under such a clear strategic direction, it will be entirely possible to establish appropriate contractual frameworks, not only for pioneering projects but also to lay the foundation for a fully-fledged offshore wind industry,” Mr. Antonioli emphasized.

In addition, Mr. Antoine Croize, Country Manager of Vestas Vietnam, underscored that a stable and predictable policy framework is a prerequisite for foreign investors to formulate long-term plans and operate effectively. Vietnam must continue to enhance market transparency and predictability, particularly by clarifying what can be realistically implemented. “Many countries have set highly-ambitious targets for offshore wind power but failed to realize them,” he said. “Therefore, establishing a clear and feasible development roadmap, accompanied by a concrete legal framework, will be the decisive factor in turning Vietnam’s offshore wind ambitions into reality.”

Offshore wind development must be approached holistically across the entire value chain. Turbine manufacturing represents only one link, while other foundational elements, such as port infrastructure, logistics systems, and offshore technical services, play equally critical roles in ensuring project viability.

Ms. Le Thi Phuong Nhi, Country Manager at Siemens Energy Vietnam

VET-Phuong Nhi

For effective energy transition

Wed, 15 Apr 2026 02:30:00 GMT

Experience from the EU shows that an effective energy transition requires a synchronized set of factors, including a stable policy framework, strong technical capacity, and the ability to mobilize financing.

Under Prime Ministerial Decision No. 458/QD-TTg of March 23, 2026, an updated implementation plan for the Political Declaration on establishing the Just Energy Transition Partnership (JETP) has been approved, with a focus placed on coordinating with international partners to mobilize resources for JETP projects.

The approval of the plan not only reaffirms Vietnam’s commitment to energy transition and its net-zero emissions target by 2050, but also highlights key challenges related to mobilizing international resources, improving policy frameworks, and accelerating project implementation. These issues were also emphasized by experts, policymakers, and international partners at the “JETP Energy Transition: A Key Platform for Policy Dialogue and Joint Projects” session held within the recent EU-Vietnam Global Gateway Business and Investment Forum.

Policy as a foundation

Sharing strategic directions, Mr. Dao Duy Anh, Deputy Director General of the Department of Innovation, Green Transition and Industrial Promotion at the Ministry of Industry and Trade (MoIT), noted that energy transition, green growth, and the circular economy are consistent priorities of Vietnam’s Party and government, especially in recent years as the country works toward the net-zero commitment it made at COP26. “There are many solutions, including participation in international initiatives such as the JETP,” he said.

Since joining the JETP in 2022, Vietnam approved a financial mobilization mechanism in 2023 and has actively pursued regulatory reforms to address bottlenecks. The Politburo issued Resolution No. 70 on ensuring national energy security to 2030, with a vision to 2045, outlining a transition toward renewable energy, reducing reliance on fossil fuels, and supporting environmental protection and economic stability. “Amid current challenges in fossil fuel supply, this direction has proven to be appropriate,” he emphasized.

To institutionalize these policies, the National Assembly and government have issued additional resolutions, while the MoIT has proposed amendments to the Law on Electricity and regulations on Direct Power Purchase Agreements (DPPAs), as well as mechanisms to receive JETP funding.

As a result, over the past five years, Vietnam has experienced one of the fastest renewable energy expansions globally, reaching about 23 GW of installed capacity as of the end of 2024, making it a leader within ASEAN.

However, Mr. Nguyen Phan Dinh, Vietnam Market Director at EDP Global and Head of EuroCham’s Energy Working Group, noted that coal still accounted for around 50 per cent of electricity generation in 2024, indicating significant space for transition and investment opportunities. He highlighted that the first opportunity lies in political commitments, such as the Prime Minister’s pledge to achieve net-zero emissions by 2050 at COP26. “This is a clear commitment, creating momentum for building a policy framework and paving the way for investment,” he said.

The next opportunity is development planning. Specifically, the revised National Power Development Plan VIII (PDP8) has set very ambitious targets for renewable energy. To realize these goals, Vietnam needs to mobilize some $130 billion in capital for the 2031-2035 period. “I hope that about 20 per cent of that will be allocated to the power grid, with the remainder for renewable energy sources, and this represents a significant opportunity,” Mr. Dinh added.

Regarding participation in the JETP, the MoIT, along with international partners, has reviewed and selected 44 projects that meet JETP criteria. However, Mr. Duy Anh said that after more than two years, only three projects have received funding from JETP, with capital exceeding $700 million, while the remaining projects are being considered for funding and implementation in the near future.

“To accelerate the implementation of the JETP in the coming period, efforts are needed not only from the Vietnamese Government but also from partners participating in the JETP and the governments of countries interested in Vietnam’s energy transition,” he added. “We are committed to continuously improving policy mechanisms to remove bottlenecks in the implementation process, and to finding and developing projects that meet JETP criteria in order to support more projects in the time to come.”

Financing and technical support

Mr. Do Duc Tuong, a JETP Energy Project Development Specialist at the United Nations Development Programme (UNDP) Vietnam, believes that one of the major bottlenecks in the implementation of the JETP in Vietnam is the lack of resources for new projects, especially those without precedent. Therefore, in addition to traditional bank credit, the establishment and effective operation of technical assistance funds play a crucial role.

Data reveals that of the total of $15.5 billion committed by the JETP’s international partners, approximately $300 million is specifically allocated to technical assistance, with allocation depending on the priorities of each partner. To date, about 80 per cent of bilateral cooperation projects have been implemented, with the remainder in the preparation and funding connection stages.

Sharing the same view, Ms. Alice Carr, Executive Director for Public Policy at the Glasgow Financial Alliance for Net Zero (GFANZ), noted that technical assistance resources are still not being effectively utilized. She argued that many projects might be unsuitable if they retain their original models, but could become viable if restructured, for example, by adopting a DPPA or receiving support for feasibility studies in line with international standards. “Vietnamese businesses have strengths in attracting capital, but still need to improve their technological and project implementation capabilities to more effectively utilize technical assistance resources,” she added.

From an international finance perspective, Mr. Stephan Opitz, Member of the KfW Management Board for Asia and Europe, said international experience shows that providing credit lines accompanied by technical assistance is a useful tool. These facilities are typically geared toward specific sectors, with clear requirements regarding standards and technology. “However, for commercial banks, this is still a relatively new area, requiring technological assessment capabilities and a team of specialized experts,” he added. “Given the relatively low profitability of loans to small and medium-sized enterprises, banks may be hesitant, but consolidating multiple loans and providing technical support will help reduce risk and expand access to capital for the private sector.”

Systemic approach

Vietnam’s energy sector is a focus of investment. “To date, we have committed approximately €1 billion ($1.15 billion) to transmission, distribution, and power generation projects, primarily in collaboration with EVN [Vietnam Electricity],” he said. “However, the key is not just capital, but a systemic approach. We are not only financing but also promoting a systemic approach to the transition to renewable energy, something we are also doing in many other countries.”

A prime example of KfW’s investments in Vietnam is the Bac Ai pumped-storage hydropower project, a key component of this transition. This project acts as a form of “battery storage,” balancing the volatility of renewable energy, thus playing a crucial role in the system.

Similarly, the Tri An project is not simply an expansion of a hydropower plant. It will take on the role of supplying peak-load electricity, a task previously handled primarily by coal- and gas-fired power plants. Thus, renewable energy sources such as hydropower can replace and provide this crucial power supply.

Ten years ago, KfW also financed the first wind power project in Vietnam. Another role of KfW is to introduce new technologies into a country, thereby allowing all parties to better understand the costs, risks, and necessary framework conditions to attract private investors later on.

In addition, projects are often implemented through co-financing with multiple partners such as the French Development Agency (AFD), Proparco, Italian partners, and possibly the European Investment Bank (EIB) and the EU, to enhance resources and investment efficiency. “We also particularly appreciate the role of the EU, as the funding provided by the EU has been very helpful in preparing and promoting these investments,” Mr. Opitz said.

Regarding actual investments, he shared insights into mobilizing international capital based on policy-based lending. He suggested that, within a systems approach to energy transition, several directions could be pursued. Firstly, continuing to finance the projects mentioned, and secondly, providing credit to domestic banks, thereby facilitating private sector participation in energy investment.

In particular, the third, and equally important, direction is policy support loans, which KfW has successfully implemented in many countries such as South Africa and Indonesia; key partners in the JETP. In South Africa, from the outset, this model has been combined with infrastructure financing to create a synergistic impact.

According to Mr. Opitz, the essence of policy-based financing is that financial institutions collaborate with the government to develop and agree upon a set of effective policy criteria to promote investment, especially to attract more private capital into the energy sector, as well as to remove bottlenecks in the system.

“The advantage of this approach is the ability to combine experience from real-world projects with knowledge and recommendations from the business sector, thereby bringing policy dialogue into more effective engagement,” Mr. Opitz emphasized. “At the same time, financing is often implemented in the form of co-financing with many large financial partners, creating sufficiently strong resources to promote quality and ambitious policy reforms while integrating experiences from many countries. I believe this could also be an effective direction for Vietnam in the future, leveraging this tool for the energy transition process.”

VET-Ngoc Lan

To meet strong electricity demand

Tue, 14 Apr 2026 07:30:00 GMT

Grid infrastructure has a key part to play in catering to the ever-increasing electricity demand amid Vietnam’s energy transformation and ongoing development.

Amid forecasts of continued strong growth in electricity demand in the years to come, at the same time as Vietnam’s power sector accelerates the development of power generation projects it is also stepping up investment in grid infrastructure to enhance transmission capacity, promptly distribute power output, and ensure the safe and stable operation of the system. As demand grows rapidly and the share of renewable energy increases, the role of the grid extends beyond mere “transmission” to become a decisive factor in the system’s ability to absorb and efficiently allocate power across the entire network.

Attracting the private sector

In terms of investment, under the National Power Development Plan for 2021-2030 with a vision to 2050 (PDP8), total investment in power generation and transmission grid development in Vietnam during the 2026-2030 period is estimated at approximately $136.3 billion. Of this, around $118.2 billion is allocated for power generation and $18.1 billion for power transmission grids. With more than 1,000 power transmission grid projects expected to be implemented during this period and total capital demand reaching roughly $18.1 billion, the investment pressure on national grid infrastructure is substantial.

During the thematic session entitled “National grid and regional connections: The way forward in Vietnam’s trajectory towards net-zero,” held within the framework of the recent EU-Vietnam Global Gateway Business and Investment Forum, Mr. Nguyen Manh Cuong from the Planning and Development Division of the Electricity Authority of Vietnam (EAV) at the Ministry of Industry and Trade (MoIT), noted that of the total $18.1 billion required, approximately $12.9 billion is expected to come from the State sector, while around $5.2 billion, equivalent to nearly 30 per cent of total investment, will need to be mobilized from non-State sources. “This clearly demonstrates the increasingly important role of the private sector and foreign investors in the development of transmission grid infrastructure,” he emphasized.

Meanwhile, investment in the transmission grid is still largely undertaken by Vietnam Electricity (EVN) and the National Power Transmission Corporation (EVNNPT), which maintain an almost monopolistic role in the construction and operation of the high-voltage grid. This reality underscores the urgent need to broaden the participation of other economic actors to meet rising capital demands.

This direction is also aligned with Politburo Resolution No. 70-NQ/TW, which encourages private sector participation in energy projects on the basis of fair competition. Accordingly, the MoIT is expediting the institutionalization of these policies in the draft amended Law on Electricity, focusing on improving capital mobilization mechanisms, simplifying investment procedures to shorten project timelines, and developing technical standards for emerging areas such as smart grids and energy storage systems.

Similarly, the orientation set out in Politburo Resolution No. 68-NQ/TW reaffirms the private sector as a key driver of the economy, further emphasizing the need to create more favorable conditions for deeper private sector participation in the power sector. Mr. Cuong said that with these orientations and solutions, the MoIT is making determined efforts to translate major policy directions into reality, while effectively attracting resources from financial institutions and the private sector. “This will contribute to the development of the transmission grid system, which is critical infrastructure with decisive significance for economic growth, energy transition, and sustainable development,” he went on.

From the perspective of international investors, Ms. Cristina Bergomi, Senior Vice President of GE Vernova, suggested that in order to attract private and foreign investment into Vietnam’s national grid infrastructure, the country needs a clear, phased roadmap designed to gradually expand participation from both domestic and international investors.

Specifically, in the initial phase, transmission grid projects should receive strong government support, including guarantee mechanisms or risk-sharing frameworks, to build early market confidence. This is particularly important in the transmission sector, which is characterized by large capital requirements, long payback periods, and high risk levels. Once confidence is established through pioneering projects, the market will become progressively more attractive to private investors and international developers.

Building on that foundation, in subsequent phases, Vietnam can scale up investment attraction, promote deeper participation from the private sector and foreign investors, and encourage diverse partnership models across the value chain. “In particular, the successful implementation of pilot projects will serve as a ‘proof of concept,’ helping to reduce perceived risks and create a spillover effect for future projects,” Ms. Bergomi noted.

In addition, to enhance the likelihood of success, investors should be involved from the early stages of projects, not only in financing but also in design, technical studies, and operational structuring. Early engagement allows stakeholders to optimize implementation plans, better manage risks, and ensure long-term feasibility. This is also a key factor in transforming the power grid, traditionally dominated by State-owned enterprises, into a more attractive destination for both domestic and international investment capital.

Three core pillars.

Beyond boosting investment, experts also emphasize that improving the quality and operational capacity of Vietnam’s power grid remains a critical priority. Mr. Francesco Comito, Area Manager in South Asia and Far East at CESI, highlighted that the modernization of Vietnam’s transmission system should be built on three main pillars: digitalization, enhanced flexibility, and transformation of the operational model. On this basis, the power system will gradually transition from a traditional alternating current (AC) structure to a hybrid model, in which high-voltage direct current (HVDC) technology serves as the “backbone,” complementing the existing grid.

Under the digitalization pillar, Vietnam should prioritize the development of core technologies to strengthen system monitoring and dispatch capabilities. In this context, supervisory control and data acquisition (SCADA) systems and energy management systems (EMS) are often described as the “brain” of the grid, enabling real-time monitoring and operation, while substation automation based on International Electrotechnical Commission (IEC) 61850 standards can significantly reduce the frequency and duration of outages.

At the same time, the deployment of wide-area monitoring systems will help track the dynamics of the entire grid, laying the foundation for a shift from reactive to predictive operations. According to Mr. Comito, though notable progress has been made, digitalization efforts still need to be accelerated and implemented more synchronously to establish a truly smart grid.

In terms of flexibility, as the share of renewable energy continues to rise, enhancing the flexibility of the transmission system becomes essential. Unlike conventional power sources, wind and solar energy are inherently variable, leading to continuous fluctuations in supply and demand. Without sufficient system flexibility, localized oversupply or grid congestion may occur, resulting in curtailment and reduced investment efficiency.

Regarding the third pillar - the transformation of the transmission model - the role of HVDC systems is particularly emphasized. Given Vietnam’s elongated north-south geography, where renewable energy resources are concentrated mainly in the central and southern regions while major demand centers are located in the north, the power system faces a structural imbalance. In this context, HVDC enables long-distance power transmission with lower losses while enhancing overall system stability.

Looking ahead, the development and mastery of HVDC systems will also provide a foundation for Vietnam to participate more deeply in the ASEAN regional power grid. “Overall, current priorities should not be limited to expanding power grid infrastructure in Vietnam, but more importantly, to building a smarter, more flexible, and more sustainable power system,” Mr. Comito concluded.

VET-Phuong Hoa

Vietnam's energy sector seeks qualitative growth

Tue, 14 Apr 2026 04:05:00 GMT

Efficiency and sustainability are the focus as Vietnam energy sector seeks qualitative rather than quantitative growth.

Vietnam’s energy sector has moved beyond a phase of rapid expansion and is entering a period of deep, quality-driven growth. Rather than racing to add capacity, the market is now focused on operational efficiency and sustainability, marking a strategic turning point that will redefine what is considered the “lifeblood” of the economy.

According to the Ministry of Industry and Trade (MoIT), total installed power capacity as of the end of 2025 stood at approximately 87,600 MW. Of this, renewable energy sources (wind, solar, and biomass, etc.) accounted for some 24,453 MW, or 27.9 per cent. These figures indicate that renewable power is steadily establishing itself as a key pillar of national energy security and Vietnam’s commitment to achieving net-zero emissions by 2050.

Clean energy surge

Within the overall power mix, solar energy (both utility-scale and rooftop systems) remains the largest renewable source, with total capacity reaching approximately 17,200 MW as of the end of 2025. However, the most notable shift compared to the pre-2021 period is the strong transition from large-scale solar farms to self-consumption rooftop solar systems.

This shift stems from incentive policies introduced in late 2024 and early 2025, notably Decree No. 135/2024/ND-CP dated October 22, 2024, on rooftop solar for self-generation and self-consumption, and Decree No. 58/2025/ND-CP dated March 3, 2025, detailing provisions of the Law on Electricity on renewable and new energy development. While Decree No. 58 replaced Decree No. 135, it largely retains previous provisions while simplifying administrative procedures and improving accessibility for businesses and households.

Data from the MoIT reveals rapid growth in rooftop solar projects at industrial parks across northern, central, and southern Vietnam during 2024-2025. Total installed rooftop solar capacity at industrial parks has exceeded 3,200 MWp, with some 25 per cent of systems integrated with battery energy storage systems (BESS). Technical potential is estimated at over 40,000 MWp, with around 20,000 MWp likely achievable by 2030.

Notably, BESS integration is becoming a standard requirement in new projects, helping ease grid pressure during peak periods and minimize curtailment. Large-scale storage facilities in Ninh Thuan (now part of Khanh Hoa province) and Binh Thuan (now part of Lam Dong province) have helped address the mismatch between real-time demand and solar generation, allowing solar power to remain effective even after sunset.

Wind power - onshore and nearshore - had reached an estimated 6,000 MW as of the end of 2025. However, offshore wind has yet to see any commercial projects enter into operation, largely due to challenges related to marine spatial planning and survey licensing frameworks. Most large-scale projects remain in early-stage preparation or preliminary surveys. According to the Vietnam Energy Association, offshore wind will be “key” not only to achieving energy self-sufficiency but also to positioning Vietnam as a clean power export hub in ASEAN over the next decade via cross-border transmission lines.

A major driver of renewable energy growth in recent years has been the stable implementation of the Direct Power Purchase Agreement (DPPA) mechanism. The Electricity Authority of Vietnam at the MoIT reported that, as of early 2026, more than 60 DPPA contracts had been signed between clean energy developers (such as TT, BCG, and Trung Nam) and multinational manufacturers (including Samsung, Apple, Heineken, and Google).

The growing preference among large FDI enterprises, particularly in technology and electronics, to use 100 per cent clean energy not only helps them meet international green certification standards but also fosters a more competitive market, reduces pressure on public investment, and alleviates the financial burden on Vietnam Electricity (EVN). The DPPA mechanism has effectively become a magnet for foreign capital inflows into large-scale wind and solar projects.

Unlocking transmission

From a regulatory perspective, the MoIT has identified the socialization of power transmission as a key policy priority for 2026. The operation of the 500 kV transmission line (Circuit 3) from Quang Trach (in Quang Binh, now part of Quang Tri province) to Pho Noi (in Hung Yen province) since mid-2024 has significantly alleviated transmission bottlenecks for renewable projects in central Vietnam and the central highlands.

According to operational reports from the National System and Market Operator (NSMO) and EVN, renewable energy curtailment rates (wind and solar) have dropped sharply, from peaks of 10-20 per cent during 2020-2022 to below 2 per cent by late 2024, thanks to improved transmission capacity.

This progress has strengthened investor confidence in the transparency and efficiency of Vietnam’s power system. Energy experts also agree that the shift from fixed feed-in tariffs to competitive bidding has brought renewable energy prices closer to conventional power costs, paving the way for a more equitable and transparent energy economy.

However, challenges remain. Despite rising installed capacity, the system still requires clearer pricing mechanisms for large-scale BESS to ensure grid stability. There is also a pressing need to accelerate the development of a high-quality domestic workforce to gradually replace foreign experts in operating and maintaining complex offshore wind projects. In addition, the planned launch of a domestic carbon credit market in 2028 will require robust systems for measurement and certification of renewable energy projects.

At this stage, Vietnam’s renewable energy sector has moved beyond its volatile early phase and is entering a period of stable, in-depth development. The combination of flexible government policies, support from industry associations, and sustained FDI inflows is creating a promising green energy ecosystem. At this pace, Vietnam is well positioned to achieve the medium-term targets of the revised National Power Development Plan VIII in 2021-2030, with a vision to 2050 (PDP8), ahead of schedule, laying a solid foundation for a green industrial transformation.

Renewable energy is no longer a stopgap solution and has become a core driver of economic growth, enhancing national competitiveness and reinforcing Vietnam’s credibility in global climate action efforts. While challenges remain, strong government commitment and business alignment are making a clean, self-reliant energy future increasingly tangible.

VET-Huyen Vy

HCMC to develop 14 new smart and green IPs by 2033

Mon, 13 Apr 2026 07:11:00 GMT

Currently, the city accommodates 105 export processing zones and industrial parks with a total area of more than 50,288 ha.

Under its master development plan, Ho Chi Minh City expects to invest in 14 more new industrial parks (IPs) between now and 2033, covering a total area of approximately 3,833 ha.

According to the Ho Chi Minh City Export Processing and Industrial Zones Authority (HEPZA), the plan follows a "smart and green" model and is divided into three phases.

Four industrial parks of Pham Van Hai I, Pham Van Hai II, Vinh Loc 3, and Nhi Xuan will be developed in phase I (2025–2027); five IPs of An Phu, Trung An, Le Minh Xuan 4, Pham Van Hai III, and Hiep Phuoc 3 in phase 2 (2027–2030); and the remaining of Tan Phu Trung 2, 3, and 4, Binh Khanh 1, and Binh Khanh 2 in phase 3 (2030–2033).

A representative from HEPZA stated that these projects are currently in the planning stage. Since investors have not yet been selected, no significant difficulties or obstacles have arisen during the implementation process.

Once the subdivision planning is approved, HEPZA will advise the City People's Committee on organizing investor selection based on specific criteria. These include financial capacity, project implementation experience, technical expertise, and financial-commercial efficiency. The selection process is committed to ensuring openness, transparency, and compliance with the law.

Currently, the city accommodates 105 export processing zones and industrial parks with a total area of more than 50,288 ha. Among these, 58 zones are operational with an average occupancy rate of approximately 80%.

Vneconomy-Minh Hà

Businesses prepared for emerging carbon market

Mon, 13 Apr 2026 01:30:00 GMT

A training program launched to enhance businesses’ readiness for carbon transactions and compliance obligations.

Vietnam is stepping up efforts to prepare businesses for participation in its emerging carbon market, with around 110 firms taking part in a series of training workshops held in April across major cities.

The initiative is jointly held by the Ministry of Agriculture and Environment and the United Nations Development Program (UNDP), aiming to enhance businesses’ readiness for carbon transactions and compliance obligations, while providing a platform to exchange experiences and identify implementation challenges.

The first workshop was held in Ho Chi Minh City on April 10, bringing together enterprises allocated greenhouse gas emission quotas during the 2025–2026 pilot phase.

Additional sessions are scheduled in central Da Nang city and Hanoi.

Participating firms are expected to play a direct role in the operation of Vietnam’s carbon market. During the sessions, participants are updated on regulations governing greenhouse gas reduction and the core principles of carbon trading. They are also introduced to the structure and operation of the domestic carbon market, alongside hands-on practice using the National Registration System.

Experts say establishing a domestic carbon market is a crucial step toward translating Vietnam’s climate commitments into concrete action. A well-functioning market could mobilise climate finance, encourage low-emission investment, strengthen competitiveness, and support the country’s transition to green and sustainable growth.

VnEconomy-Hằng Anh

New energy storage battery factory launched in Hung Yen

Sun, 12 Apr 2026 23:00:00 GMT

The 1.2-hectare facility includes a modern two-story manufacturing workshop and a dedicated Research and Development (RD) center, with a design capacity of 5GWh per year.

GG Power officially inaugurated its Battery Energy Storage System (BESS) factory at Industrial Park No. 5 in Xuan Truc, Hung Yen province, northern Vietnam, on April 11.

The project represents an initial investment of VND300 billion ($11.4 million).

As one of Vietnam’s first professionally invested BESS facilities, the plant operates under international standards with an automation rate exceeding 90%, allowing for rigorous quality control at every stage of production.

The 1.2-hectare facility includes a modern two-story manufacturing workshop and a dedicated Research and Development (RD) center, with a design capacity of 5GWh per year. The factory will provide comprehensive energy storage solutions for all market segments, including residential (households), commercial and industrial (CI), and utility-scale grid projects.

Regarding its technological foundation, GG Power has secured technology licensing from the Goldwind Group to master its RD processes. This has enabled the company to successfully optimize an Energy Management System (EMS) that is highly compatible with Vietnam’s national power grid while ensuring that all stored data remains secure within the country.

Speaking at the ceremony, Deputy Minister of Industry and Trade Nguyen Hoang Long emphasized that a robust energy storage system is a mandatory requirement for the development of Vietnam’s renewable energy market. He praised the "can-do" spirit of the Vietnamese enterprise and affirmed that the Ministry of Industry and Trade would continue to support domestic businesses in building a "Made in Vietnam" green energy ecosystem.

Representing the local government, Le Quang Hoa, Vice Chairman of the Hung Yen Provincial People’s Committee, stated that the factory’s operation aligns with the province’s development orientation through 2030, with a vision to 2045, to become a high-tech industrial hub.

Vneconomy-Khánh Vy

Higher requirements on agro exports to the EU

Sun, 12 Apr 2026 07:00:00 GMT

Satisfying new requirements on agro exports to the EU are quite complex but will position exporters to more readily approach other markets.

A report from the Ministry of Agriculture and Environment (MAE) puts Vietnam’s exports of agriculture, forestry, and fisheries products to the EU in 2025 at $9.24 billion, accounting for 13.2 per cent of the sector’s total export value.

Coffee posted the strongest growth among export items, with shipments exceeding 666,000 tons and export value reaching $3.63 billion, up 68.3 per cent in value. The EU accounted for 40.7 per cent of Vietnam’s total coffee export value, maintaining its position as the country’s largest export market for coffee. Notably, coffee exports to key markets such as Germany, Italy, Spain, and the Netherlands all posted impressive growth.

Rising standards

The European Union Deforestation Regulation (EUDR) is increasingly seen as a driver for Vietnam’s agriculture and forestry sectors to accelerate digital transformation, standardize data, and strengthen governance. Meeting EU standards not only helps overcome trade barriers but also creates favorable momentum for Vietnamese products to access other high-end markets more easily.

Exports of Vietnam’s agricultural and forestry products to the EU are expected to continue growing in the years to come. However, Dr. To Xuan Phuc, an expert at non-profit Forest Trends, said this growth trend is no longer simply about expanding market share but is accompanied by increasing pressure for comprehensive transformation in governance, transparency, and sustainable development.

Where businesses previously focused mainly on complying with domestic laws and basic trade regulations, they must now meet a broader set of criteria, including preventing deforestation, reducing carbon emissions, respecting the rights of indigenous communities, and ensuring equality and meaningful participation of smallholder farmers in supply chains. International trade, particularly in the EU, is shifting from price-based competition to standards-based competition.

According to Dr. Phuc, the EU-Vietnam Free Trade Agreement (EUVFTA) has created significant advantages for Vietnamese goods, as tariffs on many agricultural and wooden products have been reduced to zero, strengthening their competitiveness compared with countries that do not have trade agreements with the EU. However, as tariff barriers are gradually removed, technical barriers and compliance costs are becoming increasingly significant.

The EU is now widely viewed as a complex legal system with multiple overlapping regulations, including the EUDR, the EU Timber Regulation (EUTR), and the Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) regulation. Among these, the EUDR is considered to have the most far-reaching impact on Vietnam’s coffee, rubber, timber, and wooden product sectors. In May 2025, the EU classified Vietnam as a “low-risk country” under the EUDR, meaning inspection rates of around 1 per cent and significantly simplified control procedures.

Traceability challenges

Mr. Truong Tat Do, an official from the Forestry and Forest Protection Department at the MAE, said there remains a misconception that Vietnamese companies must directly submit reports under the EUDR.

In reality, the legal obligation rests with importers in the EU. However, for partners to fulfill their due diligence responsibilities, Vietnamese businesses must provide complete and accurate information on product origin to EU importers. This means that although domestic companies do not directly submit documentation, they still face significant pressure to ensure transparency and the reliability of their data.

The EUDR sets out two core requirements. First, products must not be linked to deforestation or forest degradation after December 31, 2020. Second, production must comply with national laws, including regulations on land, environment, labor, and the rights of third parties. The regulation does not apply only to production areas but to the entire supply chain, from harvesting and transport to processing and export. If any stage involves legal violations or deforestation after the stated cut-off date, the product will not meet requirements.

Under the latest timeline, the EUDR will take effect on December 30, 2026, for large companies in the EU and on June 30, 2027 for small and medium-sized enterprises (SMEs). The preparation period is therefore limited, while the transformation required is both systemic and long term.

Dr. Phuc said Vietnam’s biggest challenge lies in the fragmented and small-scale nature of production. A farmer may own multiple plots of land, while raw materials can pass through six to seven intermediary layers before reaching processing factories. This structure makes traceability extremely complex, particularly when precise geolocation data must be provided for each shipment.

Another issue is the overlap of forestry land. In some localities, such as Son La in the north and parts of the central highlands, rising coffee prices led to expansion into areas designated as forestry land. Under Vietnamese law, some of these cases may not be fully compliant, while under the EUDR the risk of products failing to qualify for export is clear.

“Before discussing global standards, the most important requirement is compliance with Vietnamese law,” Dr. Phuc said. “There are still areas recorded as forestry land on paper where forests no longer exist in reality, and some forest allocation contracts from earlier programs remain legally valid, creating complications in management and accountability. If these issues are not addressed in a coordinated manner, adapting to the EUDR will face significant obstacles.”

Digital mapping

A major shift under the regulation is the requirement for geospatial data. Companies must provide precise geographic coordinates of production plots, and a closed polygon boundary must also be defined for areas of 4 ha or more. EU authorities will cross-check this data with satellite mapping systems as of December 31, 2020, to assess deforestation risks. This approach shows that the EUDR no longer relies solely on paper documentation but increasingly uses remote sensing technology and digital data for monitoring. Inaccurate or dishonest declarations can be quickly detected when compared with independent systems.

Mr. Pham Ngoc Hai, a remote sensing expert at the Forest Inventory and Planning Institute, said advances in remote sensing and digital transformation are fundamentally changing how information on forests and land use is accessed. Free satellite imagery from the US’s Landsat program has provided continuous data since 1972. While it previously took 16 days to obtain a new image, observation frequency is now significantly higher, enabling near-continuous monitoring.

“Just two or three overlapping satellite images can significantly improve observation capacity,” Mr. Hai said. “Observations generate data, and data produces information that objectively reflects conditions on the ground. For a specific forest plot, it is possible to trace land use history from the 1980s to the present, effectively ‘telling the story’ of how that area has changed over time.”

In practice, field inspections may show that an area has been planted with coffee, but it can be difficult to determine exactly when the crop was established. Satellite data allows analysts to trace backwards in time to determine whether the planting occurred before or after the 2020 cut-off date, and whether the land was previously farmland or forestry land. This capability helps clarify timing, a key factor under the EUDR.

According to Mr. Hai, Western partners do not necessarily require Vietnam to provide every piece of detailed information, as they can retrieve data from independent sources. Exporters only need to provide the coordinates of shipments, while importers can independently verify and cross-check the information. Multiple traceability systems are currently in use; beyond domestic platforms, international partners may build their own databases and compare data from various sources. There is no longer a single source of information.

In this context, data transparency has become essential. If reports differ between stages, external parties can verify the information using scientific data with a high degree of accuracy. Technology and data are reshaping how natural resources are managed and are setting higher transparency standards for the entire supply chain.

To help Vietnam’s agricultural and forestry products deepen their access to the EU market, experts recommend that during the 2025-2027 period the country should prioritize completing GPS mapping of raw material areas, building comprehensive traceability records, and strengthening data governance capacity.

VET-Chu Khoi

POSCO to invest over $400 mln in battery materials plant in Thai Nguyen

Sat, 11 Apr 2026 00:15:00 GMT

Following a period of extensive surveys and careful research, POSCO Future M decided on Song Cong 2 Viglacera to establish its inaugural battery materials factory in Vietnam.

Amidst a significant shift in the global clean energy supply chain, POSCO Future M (a subsidiary of South Korea’s POSCO Group) has officially selected the Song Cong 2 Viglacera Industrial Park in Thai Nguyen Province, northern Vietnam, as the site for its first large-scale battery materials plant in the country. Notably, this facility marks POSCO’s first overseas production base for cathode materials.

The signing ceremony for the in-principle land lease agreement at Song Cong 2 Viglacera IP took place on April 9.

Speaking at the event, a representative from POSCO Future M highlighted that the company is the only entity in South Korea capable of simultaneously producing both cathode and anode materials, serving as a vital link in the global supply chains of leading electronics and electric vehicle (EV) corporations.

Following a period of extensive surveys and careful research, POSCO Future M decided on Song Cong 2 Viglacera to establish its inaugural battery materials factory in Vietnam.

The project spans 37 ha with a total investment exceeding $400 million. Construction is slated to begin in the second half of 2026, with production expected to commence in 2028

The plant is designed with an initial capacity of 55,000 tons per year and is planned for phased expansion as order volumes grow. Once operational, the facility will serve as a strategic supply hub for top EV manufacturers in the United States, European Union, and South Korean markets.

Vneconomy-Phan Nam

No instant ban on petrol-powered transport as Hanoi takes measured approach for Ring Road 1

Sat, 11 Apr 2026 00:00:00 GMT

Under the current plan, starting July 1, 2026, Hanoi will begin piloting "Low Emission Zones" (LEZ) in certain areas within Ring Road 1.

Hanoi will not immediately ban fossil-fuel-powered motorbikes within the Ring Road 1 area starting July 2026. Instead, the city will implement a pilot roadmap with a specific scope and targeted groups of vehicles.

According to the city Department of Construction, the control of vehicles using fossil fuels within Ring Road 1 will not follow a "blanket ban" approach. Instead, it will be rolled out step-by-step, following a roadmap tailored to real-world conditions. This adjustment is a significant shift in response to public concerns regarding the feasibility of applying simultaneous restrictions on private vehicles in the city center.

Choosing a phased roadmap over immediate drastic measures reflects not only considerations for infrastructure and social stability but also demonstrates the link between urban transport policy and broader goals for energy, technology, and green growth.

Under the current plan, starting July 1, 2026, Hanoi will begin piloting "Low Emission Zones" (LEZ) in certain areas within Ring Road 1. The implementation is defined as a controlled emission strategy with a specific scope, timeframe, and designated groups of subjects, rather than a uniform application across the entire route.

The Department of Construction evaluated that this approach aligns with Resolution No. 57/2025/NQ-HĐND of the city People’s Council. Under this resolution, Low Emission Zones are determined based on criteria such as urban planning, traffic congestion levels, and air quality. These areas are characterized by high activity density and significant environmental pressure, making them the starting point for restructuring urban transport.

By avoiding a comprehensive ban and instead limiting restrictions to specific hours, areas, and vehicle groups, the city is adopting an experimental approach. The municipal government will monitor and evaluate the impact of the pilot to adjust policies for each subsequent stage.

The expansion roadmap has also been established in stages following the city's concentric rings: expanding from Ring Road 1 to Ring Road 2 by 2028, and reaching Ring Road 3 by 2030.

Vneconomy-Đan Tiên

Trade ministry considers E10 biofuel rollout from April 2026

Fri, 10 Apr 2026 10:00:00 GMT

Major fuel traders, such as Petrolimex and PVOIL, have reportedly completed basic infrastructure preparations for the shift.

Following the Prime Minister’s Directive 09, the Ministry of Industry and Trade (MoIT) is considering a transition from mineral gasoline to E10 biofuel starting in April 2026.

Major fuel traders, such as Petrolimex and PVOIL, have reportedly completed basic infrastructure preparations for the shift.

The information was shared during the MoIT’s regular first-quarter press conference on the afternoon of April 9.

According to Deputy Director of the Agency for Innovation, Green Transformation, and Industrial Promotion, Mr. Dao Duy Anh, under the Prime Minister's Directive No. 09/CT-TTg, dated March 19, 2026, on energy conservation and accelerating the biofuel adoption roadmap, the MoIT was tasked with overseeing the transition to E10 biofuel within April 2026.

In compliance with the Government’s instructions, the MoIT has requested major petroleum traders to report on their readiness for the transition. Following this, on March 26, 2026, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan chaired a working session with relevant ministries, major traders, and industry bodies, including the Vietnam Biofuel Association and the Vietnam Petroleum Association.

Based on these reports and assessments, the MoIT has identified three key factors that allow for the early implementation of E10: stable supply sources, adequate legal frameworks and infrastructure, and the readiness of businesses in the distribution chain to reach consumers.

Mr. Anh noted that retail stations under major corporations like the Vietnam National Petroleum Group (Petrolimex), PetroVietnam Oil Corporation (PVOIL), and other large market-share holders have fundamentally completed their preparations. However, challenges remain for some smaller enterprises and retail stations regarding infrastructure, such as cleaning storage tanks and installing the additional equipment required to distribute biofuel to the public.

Vneconomy-Huyền Vy

More support from France for Vietnam's sustainable development

Fri, 10 Apr 2026 09:30:00 GMT

France provides support to Vietnam's climate transition through its companies operating in the Asian country.

Vietnam’s construction industry remains a key pillar of its economy, contributing some 17 per cent of GDP and posting growth of about 9 per cent in 2025. This momentum is expected to continue, driven by the government’s push to accelerate major infrastructure projects in cooperation with the private sector. Ensuring that these projects meet green standards across responsible architecture, urban planning, public transport, and energy efficiency will be critical for sustainable future and more livable cities.

These remarks were made by H.E. Olivier Brochet, Ambassador of France to Vietnam, at the Build to Last 2026 Conference organized by the French Chamber of Commerce and Industry in Vietnam (CCIFV) in Ho Chi Minh City on April 7.

The gathering aimed to promote dialogue and strengthen cooperation across the construction and urban development ecosystem.

Strengthening climate cooperation

The Ambassador underscored the central role of sustainable construction, alongside strong participation from French and Vietnamese businesses and the international community.

Globally, the construction sector accounts for a significant share of worldwide emissions while contributing around 11 per cent of global GDP and 7 per cent of employment. Beyond its economic importance, the sector directly affects quality of life, underscoring its critical role in addressing climate change and making sustainability both an environmental and socio-economic priority.

According to Ambassador Brochet, the transition toward greener cities requires coordinated effort from multiple stakeholders, including governments, local authorities, businesses, investors, and research institutions. He also emphasized the importance of international cooperation, citing Vietnam and France’s engagement in the Global Alliance for Buildings and Construction (GlobalABC), a United Nations-backed initiative aimed at decarbonizing the building sector.

“Through the French Development Agency (AFD), France is supporting Vietnam in its efforts to adapt to climate change,” he told the Conference. “On the one hand, it has funded several projects aimed at reducing flood risks in various provinces, while on the other it grants loans to Vietnamese public and private banks to support small and medium-sized enterprises (SMEs) investing in the green transition. Finally, it advises Vietnam on the implementation of a carbon emissions trading scheme.”

In terms of climate change mitigation, the AFD signed several financial agreements at the EU-Vietnam Global Gateway Business and Investment Forum in Hanoi on March 24, including support for the Bac Ai pumped-storage hydropower plant, while continuing to invest in power infrastructure, including grid modernization.

From commitments to outcomes

Beyond policy discussions, the conference highlighted broader dimensions of sustainable urban development, including integrated planning, transport and logistics infrastructure, and the adoption of green energy and construction materials.

The role of the private sector in advancing sustainable construction also featured prominently. At the event, French multinational Saint-Gobain announced that its DURAflex fiber cement board plant in central Quang Tri province recorded net-zero carbon emissions for Scope 1 and Scope 2, becoming the first facility of its kind in Vietnam to reach this milestone.

Mr. Hai Nguyen Truong, CEO of Saint-Gobain Vietnam, said the milestone reflects the company’s commitment to translating sustainability goals into concrete outcomes, contributing to Vietnam’s net-zero emissions by 2050 target. Mr. Ludovic Weber, CEO of Saint-Gobain Asia, described Vietnam as a strategic market for the group, noting that the achievement underscores the country’s potential as a hub for low-carbon innovation.

Experts at the Conference also shared insights into the international building standards available in Vietnam. Speaking to VnEconomy / Vietnam Economic Times, Ms. Pearl Mars, Business Development Director - Building and Infrastructure (BNI) Building Resilience Index (BRI) at Bureau Veritas, noted that while international certifications are being increasingly adopted in the country, the distinction between “sustainability” and “resilience” remains unclear in practice.

Ms. Pearl Mars, Business Development Director - Building and Infrastructure (BNI) Building Resilience Index (BRI) at Bureau Veritas at the event. (Photo: CCIFV)

“Standards such as LEED and EDGE focus primarily on operational efficiency and energy savings,” she explained. “In contrast, BRI emphasizes a building’s ability to adapt to and withstand risks such as storms and flooding.”

Sustainability and resilience, she continued, address different dimensions of the climate challenge. While sustainability focuses on mitigating climate change, for example by reducing reliance on fossil fuels, resilience is concerned with adapting to increasingly frequent and severe climate-related risks.

In Vietnam, where exposure to natural disasters is significant, this distinction is becoming increasingly important. “After a major storm, the objective is not only for a building to remain structurally intact, but also to resume operations as quickly as possible,” Ms. Mars said. “Each day of disruption represents a financial loss.”

Despite the clear benefits, she added, adoption remains constrained by high upfront costs and limited awareness. Many developers, particularly in storm-prone central regions, remain hesitant to invest in resilience upgrades due to short-term profitability considerations.

Awareness about BRI in Vietnam remains in its early stages, with recognition estimated at around 30 per cent; significantly lower than in Singapore, where it exceeds 90 per cent. As such, Ms. Mars underscored the need for stronger communication efforts to raise market awareness. From an economic perspective, investing in resilience delivers clear returns. Studies show that every $1 invested in resilient construction can save approximately $4 in post-disaster repair and recovery costs.

Looking ahead, she suggested that resilience standards be integrated from the design stage to optimize both cost and effectiveness. However, even existing buildings can still be assessed and upgraded using available frameworks.

vneconomy-Nhu Quynh

Hanoi and HCMC to mandate motorcycle emission testing from July 2027

Fri, 10 Apr 2026 07:20:00 GMT

This timeline is part of the roadmap for implementing the National Technical Regulation on emission standards for motorcycles and mopeds, recently enacted by the Prime Minister.

Emission testing for motorcycles and mopeds participating in road traffic will officially commence on July 1, 2027, in Hanoi and Ho Chi Minh City. For other centrally-run cities, the requirement will take effect one year later (July 1, 2028), while the remaining provinces will begin inspections on July 1, 2030.

This timeline is part of the roadmap for implementing the National Technical Regulation on emission standards for motorcycles and mopeds, recently enacted by the Prime Minister.

Under the new regulations, emission standards are categorized based on the vehicle's manufacture or import year.

Motorcycles manufactured/imported before 2008 must meet Level 1 — the maximum permissible emission limits defined in the National Technical Regulation.

Motorcycles manufactured/imported from 2008 to the end of 2016 must meet Level 2 standards.

Motorcycles manufactured/imported from 2017 to June 30, 2026 must meet Level 3 standards.

Motorcycles manufactured/imported from July 1, 2026, onwards must meet Level 4 standards.

Mopeds manufactured/imported before 2016 must meet Level 1 standards.

Mopeds manufactured/imported from 2017 to June 30, 2027 must meet must meet Level 2 standards.

And mopeds manufactured/imported from July 1, 2027, onwards must meet Level 3 standards.

Notably, from January 1, 2028, all motorcycles and mopeds operating within Hanoi and Ho Chi Minh City must comply with Level 2 emission standards or higher.

Vneconomy-Nhĩ Anh

Australia provides AUD 75 million for Vietnam’s green transition

Fri, 10 Apr 2026 01:00:00 GMT

The funding will support sustainable and critical infrastructure projects in Vietnam, strengthening bilateral cooperation in the country’s green transition.

Australia has provided AUD 75 million for Vietnam’s green transition, according to an announcement by Ms. Sarah Hooper, Australian Consul General in Ho Chi Minh City, at the Vietnam–Australia Green Transition Forum 2026, held on April 9.

The fund, arranged through Export Finance Australia and on-lent via VPBank, is designed to finance sustainable infrastructure across Vietnam.

“Through Export Finance Australia, we have provided an AUD 75 million on-lending facility to VP Bank to finance sustainable, critical and infrastructure projects across Vietnam,” Ms. Hooper confirmed.

At the same time, Australia’s Southeast Asia Economic Strategy to 2040 identifies Vietnam as a priority partner in key sectors such as clean energy and sustainable agriculture. Beyond financing, Australia is expanding development initiatives such as Aus4Growth and Aus4Innovation, which support economic reform, digital transformation, and clean energy cooperation.

In the agricultural sector, Australian-backed projects are applying satellite data and artificial intelligence in the Mekong Delta to reduce chemical use and improve productivity. These initiatives have helped cut more than 193,000 tons of CO₂ emissions, while creating thousands of jobs.

Vietnam has committed to achieving net-zero emissions by 2050, with its Power Development Plan VIII prioritising renewable energy, energy storage, and a gradual phase-out of coal-fired power.

Amid increasing pressure from global supply chains to enhance carbon accountability and sustainability, clean energy and data transparency are emerging as key drivers of competitiveness.

Unlocking green transition

Vietnam is expected to mobilise more than $300 billion for climate finance and energy transition in the coming years, with a significant share anticipated from the private sector. However, while capital is available, the challenge lies in unlocking and effectively deploying these resources.

On the panelist “Unlock green transition policies: New contracts, new capital, new competitive advantage”, policymakers, investors, and market experts discussed how to bridge the gap between capital supply and project readiness.

Panel discussion: “Unlocking green transition policies: New contracts, new capital, new competitive advantage”. (Photo: Australia’s Consulate General in Ho Chi Minh City)

Mr. Pham Tien Dac, from the Strategy Department at Vietnam's International Financial Center, highlighted that the newly established institution, launched in early 2026, is expected to play a pivotal role in attracting international capital into Vietnam’s next phase of growth, particularly in green finance.

According to the IFC, creating a more open and investor-friendly environment will be key. This includes streamlining administrative procedures, shortening licensing timelines to as little as five to seven days, and offering greater flexibility in foreign exchange management. Sustainable finance has been identified as a core pillar, alongside plans to introduce sandbox mechanisms to support innovation in financial and green technologies.

From a market perspective, Mr Nguyen Quang Thuan, Executive Chairman CEO at Fiin Ratings Group, pointed out that while demand for green capital in Vietnam is substantial, regulatory frameworks remain incomplete. In particular, the absence of a fully operational green taxonomy continues to pose challenges for both issuers and investors.

As a result, many transactions still rely on international standards, such as Green Bond Principles, to ensure transparency and meet global investor expectations. Policy clarity, including tax incentives, capital controls, and legal frameworks aligned with common law will be critical in scaling up capital inflows. Notably, international experience suggests that green finance does not necessarily come with a lower cost of capital. Even in developed markets, cost advantages have yet to be clearly demonstrated, and businesses should therefore not expect “cheap capital” when pursuing green projects.

Big opportunities, coordinated action needed

Investor sentiment towards Vietnam remains positive. However, as noted by Ms. Ellen Van, Investment Director at Mekong Capital, a key issue is that “capital is available but not being deployed”. This hesitation stems from a disconnect between investors’ expectations and the readiness of local businesses. Investors often require high levels of transparency, robust data systems, and clear ESG reporting, which many companies in Vietnam are still in the process of developing.

Bridging this gap requires more direct engagement. Bringing investors closer to on-the-ground realities can help build trust and unlock investment decisions. At the same time, companies must proactively improve governance, financial transparency, and their ability to substantiate sustainability claims with credible data.

Another important point raised during the discussion is that green finance should not be equated with cheaper capital. Evidence from global markets suggests that “green premiums” remain limited. Instead, the real value lies in accessing high-quality, long-term funding and enhancing competitiveness.

Panellists also emphasised a shift in thinking from “green” to “transition”. For many industries in Vietnam, particularly manufacturing, achieving fully green standards immediately may not be feasible. Instead, incremental improvements such as energy efficiency upgrades or waste heat recovery should be recognised as meaningful steps in the transition process.

Businesses were advised to view green transformation as a long-term investment rather than a short-term cost. Importantly, without tangible green or transition assets, access to green finance will remain limited.

Concluding the session, speakers agreed that Vietnam is well positioned to attract global capital for its green transition, given its strong growth outlook and strategic role in global supply chains. However, realising this potential will require coordinated efforts across policy, financial markets, and corporate readiness, with transparency and trust serving as key enablers.

The Vietnam–Australia Green Transition Forum 2026, organised by the Australian Alumni Business Network, brought together policymakers, businesses, investors, and researchers from both countries to explore cooperation opportunities, as Vietnam accelerates its transition towards low-carbon, innovation-driven growth.

The forum aims to translate strategic alignment into practical collaboration by connecting Australian expertise with Vietnam’s growing market, while leveraging a network of more than 160,000 Australian alumni in Vietnam to facilitate knowledge exchange, investment dialogue, and business partnerships.

According to organisers, alumni play an important role in bridging policy and business practice, as well as linking research outcomes with market demand. The event gathered senior representatives from government, industry, investment, and research institutions, highlighting growing momentum in Vietnam - Australia cooperation on green transition and sustainable development.

vneconomy -Nhu Quynh

Vietnam sets mandatory recycling rates for products and packaging

Thu, 09 Apr 2026 23:10:00 GMT

The scope of regulated packaging includes commercial packaging—comprising both primary and secondary packaging—for goods such as food, cosmetics, medicines, fertilizers, animal feed, veterinary drugs, detergents, hygiene products, and cement.

Effective from May 25, 2026, new regulations on the recycling responsibilities of manufacturers and importers will clarify the scope of regulated entities, recycling methods, and mandatory rates for specific product and packaging groups.

This follows the newly-issued Government's Decree No. 110/2026/ND-CP, which provides detailed guidelines for implementing the Law on Environmental Protection concerning the recycling and waste treatment obligations of businesses.

Under the Decree, manufacturers and importers of products including packaging, batteries and accumulators, lubricants, tires and tubes, electrical and electronic equipment, and road vehicles must fulfill mandatory recycling rates and specifications when placing these goods on the Vietnamese market.

The Decree further clarifies specific criteria to identify the parties responsible for these duties. For products or packaging with the same brand produced by different manufacturers, the organization or individual responsible for product labeling is the entity required to fulfill the recycling responsibility.

In cases of contract manufacturing, the party that hires the manufacturer is held responsible, while for entrusted imports, the duty falls on the party responsible for labeling according to regulations.

The scope of regulated packaging includes commercial packaging—comprising both primary and secondary packaging—for goods such as food, cosmetics, medicines, fertilizers, animal feed, veterinary drugs, detergents, hygiene products, and cement.

Conversely, certain cases are exempt from these recycling requirements. Specifically, manufacturers and importers are not required to fulfill these duties for products and packaging intended for export, temporary import for re-export, or those used solely for research, educational, and testing purposes.

Vneconomy-Nhĩ Anh

Vietnam to join Japan’s GREEN EXPO 2027, focusing on green agri-trade promotion

Tue, 07 Apr 2026 23:30:00 GMT

The Vietnam Pavilion is scheduled to operate from March 19 to September 26, 2027, in Yokohama.

Deputy Prime Minister Bui Thanh Son has signed Decision No. 629/QD-TTg, dated April 6, 2026, approving the plan for Vietnam’s participation in the International Green Expo 2027 (GREEN EXPO 2027) in Yokohama, Japan.

The Vietnam Pavilion is scheduled to operate from March 19 to September 26, 2027, in Yokohama. The exhibition space will feature a flexible modular design, allowing for layout adjustments to align with changing weekly and monthly themes.

During the expo, Vietnam will implement a series of key activities. A major focus will be the organization of periodic thematic promotion events to introduce staple agricultural products, OCOP (One Commune One Product) items, and craft village goods. These events will also showcase models of green agriculture and circular economies linked to sustainable development, with active participation from various Vietnamese localities.

Furthermore, the pavilion will host trade and investment promotion activities aimed at fostering the green economy, circular economy, and digital transformation.

To engage visitors, regular public interaction programs will be held, featuring cultural experiences and direct exchanges to promote the image of Vietnam’s country, people, and high-quality products.

A significant highlight of the event will be the "Vietnam National Day." Notably, in addition to the physical site, the Vietnam Pavilion will also be developed and operated as a 3D virtual platform to reach a wider global audience.

Vneconomy-Chu Khôi

Alternative pathway for nature-aligned growth

Mon, 06 Apr 2026 23:00:00 GMT

A newly-implemented support program aims to help ensure that Vietnam has a strong scientific foundation for balancing economic growth, human well-being, and the health and wealth of nature.

As Vietnam aims to become a high-income country by 2045, its traditional resource-intensive growth model is facing serious macro-economic risks. At a technical training workshop entitled “Applying the GTAP-InVEST Model in Spatial Planning and Integrated Development,” Associate Professor Nguyen Dinh Tho, Deputy Director of the Institute of Strategy and Policy for Agriculture and Environment (ISPAE) at the Ministry of Agriculture and Environment (MAE), said Vietnam is currently recording an ecological capacity deficit of up to -220 per cent, meaning the economy is consuming resources at more than twice the rate at which nature can regenerate them. Solutions are therefore urgently needed to address this challenge.

Natural capital at risk

Within the framework of cooperation between the MAE, ISPAE, the United Nations in Vietnam, and international partners, the Nature-Transition Support Programme (NTSP) is being implemented to help the government establish a strong scientific foundation for balancing economic growth, human well-being, and the wealth of nature. The program is a global initiative funded by the UK Department for Environment, Food and Rural Affairs (DEFRA) through the Global Centre on Biodiversity for Climate (GCBC).

The first phase of the NTSP is being implemented in Ecuador, Colombia, Ghana, Indonesia, and Vietnam, with support from GCBC. The global partnership includes the UN Environment Programme World Conservation Monitoring Centre (UNEP-WCMC), the UN Development Programme (UNDP), and the University of Minnesota in the US.

According to findings presented by the NTSP, Vietnam’s GDP growth could decline by as much as 24 per cent during the 2021-2030 period if key ecosystem services - such as crop pollination, timber supply, fisheries, and carbon sequestration - continue to deteriorate as a result of land use changes under current growth pathways.

Vietnam has experienced remarkable economic growth over the years, with GDP measured in purchasing power parity terms rising from $79 billion in 1990 to more than $1.6 trillion in 2024. However, rapid growth has also increased pressure on natural resources and ecosystems. Analysis shows that climate change impacts caused losses equivalent to around 3.2 per cent of national GDP in 2020.

In Vietnam, the program works closely with ISPAE, focusing on policy development for agricultural growth, environmental protection, climate change response, and sustainable development. The NTSP helps Vietnam better understand trade-offs between economic development and nature, while identifying alternative development pathways that safeguard both economic prosperity and natural capital.

“The health, stability, and trajectory of economic systems depend on the health and functioning of the biosphere,” Associate Professor Tho noted. “Therefore, restructuring the relationship between nature and the economy is essential for building an economic structure that is resilient, sustainable, and equitable.”

Ms. Frida Diaz Almeyda, Program Officer at UNEP-WCMC, added that an assessment report developed by the Centre in Vietnam found that around 5 per cent of the economy’s value added depends moderately, highly, or very highly on ecosystem services.

Green growth route

Notably, under the NTSP framework, researchers have developed an analytical report using economic modeling methods that combine two analytical tools - GTAP and InVEST - to provide an evidence base for economic development policies linked to natural capital conservation in Vietnam.

Experts at the workshop introduced the integrated economic-ecological model GTAP-InVEST, a platform that connects Computable General Equilibrium (CGE) modeling with spatially-mapped ecosystem services.

Dr. Nfamara Dampha, Research Scientist in Natural Capital Ecosystem Services at the University of Minnesota, emphasized that the analysis is structured around a rigorous comparison of two main branching scenarios.

Scenario A (Business-as-usual / fragmented growth): A trend-based trajectory reflecting the continuation of historical patterns, designed to reveal the profound hidden costs and illusory gains generated by the depletion of natural capital.

Scenario B (Green transition / resilient sustainability): This scenario assumes the effective implementation of national green growth strategies, where circular economy practices become mandatory and ecosystem service values are explicitly internalized in economic accounting.

“This tool creates a ‘closed feedback loop’ in which natural degradation is quantified as productivity shocks within the economic model,” Dr. Dampha said. “Simulation results show that if the business-as-usual growth pathway continues, potential GDP in 2030 could decline by as much as 26 per cent due to ecosystem losses. In contrast, the green transition scenario, with smart investments in nature, delivers a higher and more sustainable long-term growth trajectory.”

Within Vietnam’s current legal and economic framework, applying the integrated GTAP-InVEST model could help address several practical policy challenges.

Representatives from the Ministry of Construction and MAE attending the workshop raised concerns about risks in spatial planning and land management following the decentralization of land use conversion authority under the Land Law 2024. Experts emphasized that the GTAP-InVEST model can serve as a key tool for quantifying economic losses from ecosystem service degradation, helping local authorities avoid sacrificing ecological land for short-term gains from industrial or real estate development.

Regarding marine spatial conflicts and energy development, representatives from the Ministry of Industry and Trade and the Vietnam Administration of Seas and Islands highlighted competition for space between offshore wind projects and traditional fishing grounds. Experts explained that the model’s capacity to provide high-resolution spatial data at 300 meters (through the SEALS tool) offers a scientific basis for optimizing site selection and minimizing conflicts between renewable energy development and coral reef conservation.

Meanwhile, representatives from the Department of Climate Change and the Department of Forestry and Forest Protection raised concerns about “fake forests,” where natural forests are replaced by monoculture plantations.

Regarding the circular economy and export competitiveness, participants pointed to an “implementation paradox” in the National Action Plan on the Circular Economy under Decision No. 222/QD-TTg, where high treatment costs remain a barrier to private investment. Experts said the model can quantify the long-term economic benefits of resource reuse, providing an evidence base for Extended Producer Responsibility (EPR) and helping exporters navigate the EU’s Carbon Border Adjustment Mechanism (CBAM).

On social equity and a “just transition,” representatives from the Ministry of Home Affairs and the MAE stressed that the green transition scenario must consider social impacts, such as job losses in coal power or coastal aquaculture sectors. The GTAP-InVEST framework is therefore recommended to incorporate “just transition” indicators to ensure that the shift towards a 75 per cent renewable energy share by 2050 does not negatively affect the livelihoods of vulnerable rural and coastal communities.

Overall, according to Dr. Dampha, by leveraging this integrated modeling framework, the report provides a robust empirical evidence base for policymaking. Subsequent chapters offer a detailed historical overview of national growth, project the long-term outcomes of the business-as-usual scenario, and envision a prosperous future under a green transition pathway. The report also analyzes key sectoral intersections and outlines the systemic institutional transformations required to ensure that Vietnam’s long-term prosperity remains firmly anchored in ecological stability.

Quote

Associate Professor Nguyen Dinh Tho, Deputy Director of the Institute of Strategy and Policy on Agriculture and Environment, Ministry of Agriculture and Environment

The health, stability, and trajectory of economic systems depend on the health and functioning of the biosphere. Therefore, restructuring the relationship between nature and the economy is essential for building an economic structure that is resilient, sustainable, and equitable.

Box

The “Applying the GTAP-InVEST Model in Spatial Planning and Integrated Development” technical training workshop was held on March 3 by the Institute of Strategy and Policy on Agriculture and Environment at the Ministry of Agriculture and Environment in coordination with relevant partners.

VET- Ngọc Lan

HCMC accelerates emission controls as air pollution rises

Sun, 05 Apr 2026 07:30:00 GMT

By 2030, the city aims for 100% of public transport vehicles to utilize clean energy, while strongly encouraging the transition of private and freight vehicles to green energy sources.

The Ho Chi Minh City People’s Committee has officially approved an action plan for air pollution control and air quality management for the 2026–2030 period, with a vision toward 2045.

For the 2026–2030 phase, the city has set specific targets to progressively reduce fine particulate matter (PM2.5) concentrations annually, striving for approximately 75–80% of days to reach "Moderate" air quality levels or better. Technology will play a central role, with a goal of ensuring 95% of the population can access air quality information through digital platforms.

In the transport sector, a roadmap of national standards will be implemented to manage emissions across all vehicle types.

By 2030, the city aims for 100% of public transport vehicles to utilize clean energy, while strongly encouraging the transition of private and freight vehicles to green energy sources.

Simultaneously, urban infrastructure will be "green-oriented," targeting at least 500 certified green buildings by 2030 and piloting air filtration systems within high-rise structures. Looking toward 2045, the city aims to maintain air quality at "Moderate" to "Good" levels, ensuring the Air Quality Index (AQI) consistently remains below the 100 threshold.

These objectives are introduced as the city faces significant environmental challenges. According to the 2025 environmental monitoring report, the city's air quality has shown signs of decline compared to previous years, primarily due to fine dust pollution and traffic noise. In response, the 2026–2030 action plan focuses on reducing emissions across four key sectors: transportation, industry, construction, and residential activities.

To address transport-related pollution, the city will establish Low Emission Zones (LEZs) and restrict non-compliant vehicles. Plans include zoning specific routes for heavy trucks, developing public transit and bicycle-sharing systems, and promoting the shift to green vehicles. The city will also increase roadside greenery and deploy technology to monitor vehicle emissions more effectively.

Management capacity will be bolstered through investments in a modern, automated monitoring network. The city plans to utilize Artificial Intelligence (AI), the Internet of Things (IoT), and Big Data to analyze and forecast pollution trends.

Furthermore, the city will strengthen international cooperation, research, and technology transfer regarding emission treatment and byproduct recycling, alongside communication campaigns to raise public awareness.

Vneconomy-Thanh Thủy

Vietnam to allow international transfer of up to 90% of carbon credits

Sat, 04 Apr 2026 03:30:00 GMT

For the category of GHG reduction measures and activities involving new, high-cost technologies that have seen limited implementation in Vietnam, the maximum transfer ratio is set at 90%.

The Government has issued Decree No. 112/2026/NĐ-CP, to be effective from May 19, 2026, establishing the first legal framework for the international exchange of greenhouse gas (GHG) emission reduction results and carbon credits within the scope of the Paris Agreement.

Regarding transfer ratios, the Decree is designed to simultaneously attract investment and ensure the fulfillment of national GHG emission reduction commitments. Under the new regulations, various emission reduction activities are specifically classified and linked to international transfer limits.

For the category of GHG reduction measures and activities involving new, high-cost technologies that have seen limited implementation in Vietnam, the maximum transfer ratio is set at 90%.

Specifically, this 90% rate applies to programs and projects such as geothermal power, offshore wind, off-grid solar power under 15MW, wave and tidal energy, and the production of green hydrogen, green ammonia, and methane biogas.

This group also encompasses the application of Carbon Capture, Utilization, and Storage (CCUS) or Carbon Capture and Storage (CCS) technologies in industrial processes, construction materials production, and energy sectors; direct air capture of CO2; waste-to-energy incineration; landfill gas recovery and utilization; and biofuel production.

Meanwhile, a maximum transfer ratio of 50% applies to measures and activities that have already been deployed in Vietnam but require additional financial and technological support.

This 50% limit is designated for programs and projects such as combined cycle gas turbine (CCGT) power using imported LNG, biomass power, nearshore wind, and renewable energy or energy efficiency projects previously registered under the Joint Crediting Mechanism (JCM) or transitioned from the Clean Development Mechanism (CDM) to the Article 6.4 mechanism (Paris Agreement).

In cases where international transfers do not involve a corresponding adjustment, the maximum transfer ratio is fixed at 90% of the total GHG emission reduction results or carbon credits issued for a specific reporting period across all categories of programs and projects.

The issuance of Decree 112 is considered a significant step toward Vietnam’s deeper integration into the global carbon market, while simultaneously establishing a legal corridor for businesses to access green finance and emission reduction technologies in the coming period.

Vneconomy-Đỗ Phong

ODA loan to be provided by Japan for green growth in Vietnam

Thu, 02 Apr 2026 09:20:00 GMT

It is expected that the loan, worth ¥50 billion, will be fully disbursed by December this year

The Government of Vietnam and the Japan International Cooperation Agency (JICA) on March 30 signed an agreement, under which Japan will provide an ODA loan, worth ¥50 billion, for the Program for Green Transformation toward Green Growth and Climate Resilience, according to the Government News.

The agreement was signed by Vietnamese Deputy Minister of Finance Tran Quoc Phuong and Chief Representative of JICA Vietnam Office Kobayashi Yosuke.

The objective of the Program is to support the Government of Vietnam to promote green growth and green transformation and to strengthen climate resilience through policy dialogue and financial support, thereby contributing to promoting the economic stabilization and development efforts of the country.

This project focuses on three pillars:

(1) Development of institutional frameworks for fiscal and investment incentives to promote GX and green growth;

(2) Policy formulation for the Nationally Determined Contributions (NDC) implementation; and

(3) Promotion of climate change adaptation measures.

Through financial support, the project aims to facilitate improvements in policies related to advancing climate change measures.

It is expected that the loan will be fully disbursed by December this year.

VGP-Van Nguyen

Vietnam gains nearly $72 million from carbon credit

Thu, 02 Apr 2026 08:00:00 GMT

This is the second time the country has gained significant revenue from "selling clean air" through carbon credits.

The Green Climate Fund (GCF) on April 1 officially approved a funding proposal submitted by the Japan International Cooperation Agency (JICA) in collaboration with the Vietnamese Government for the project "Reduce Emissions from Deforestation and Forest Degradation; Conservation, Sustainable Forest Management and Enhancement of Forest Carbon Stocks (REDD+)".

The proposal, titled "Vietnam REDD-plus results-based payments for results period of 2014," was endorsed at the 44th meeting of the GCF Board held in the Republic of Korea on March 26, 2026.

As a result, Vietnam will receive an additional $71.96 million from carbon credit.

This is the second time the country has gained significant revenue from "selling clean air" through carbon credits.

The Green Climate Fund (GCF) – a critical element of the historic Paris Agreement - is the world’s largest climate fund, mandated to support developing countries raise and realize their Nationally Determined Contributions (NDC) ambitions towards low-emissions, climate-resilient pathways.

Through a results-based payment mechanism, Vietnam will be paid corresponding to independently verified reductions in greenhouse gas emissions.

These results were achieved by reducing deforestation and forest degradation, while increasing forest carbon stocks through afforestation and the restoration of natural forests.

The funding from this project will be reinvested to strengthen forest-related policies, institutions, and enforcement measures.

Through the project's activities, Vietnam will gradually address the main causes of deforestation and forest degradation, promote sustainable forest management, and improve the livelihoods of local communities that depend on forests.

The project is expected to be implemented over a period of six years, led by the Vietnamese Ministry of Agriculture and Environment, in coordination with provincial People's Committees in the project areas. The target locations include provinces in the Northwest and Northeast regions, namely Dien Bien, Lai Chau, Lao Cai, Son La, Phu Tho and Tuyen Quang.

The approval of this project further affirms the long-standing and effective cooperation between JICA and Vietnam in the field of REDD+, including support for policy development, forest monitoring systems, and the measurement, reporting, and verification of emission reductions and removals.

In the coming time, JICA will continue to work closely with the Government of Vietnam and relevant stakeholders to promote forest conservation, mitigate the impacts of climate change, and move toward sustainable development, according the Government News.

At the beginning of 2024, Vietnam successfully sold 10.3 million forest carbon credits (equivalent to 10.3 million tons of CO₂) for the first time through the World Bank (WB). With a price of $5 per ton of carbon absorbed, the total contract value reached $51.5 million.

Tin tức + VGP-Pham Long

Potential of forest economy in Vietnam

Thu, 02 Apr 2026 04:00:00 GMT

Millions stand to benefit from Vietnam’s forest economy as the country moves closer to establishing a carbon market.

Amid the global race towards net-zero emissions, forests are becoming vast carbon “banks.” Managing by carbon footprint and clearly defining forest carbon rights will create a “green lever” for Vietnam’s forestry economy, improving livelihoods for millions of people involved in forest protection. As the country gradually forms a carbon market, measuring and managing greenhouse gas emissions becomes a critical requirement across many production sectors.

At a recent press conference organized by international non-profit Forest Trends, Dr. Vu Tan Phuong, Director of the Vietnam Forest Certificate Office (VFCO) at the Vietnamese Academy of Forest Sciences, said a “carbon footprint” refers to the total greenhouse gas emissions generated across the entire production and consumption value chain of a product, typically expressed in tons of CO₂ equivalent.

These emissions come not only from CO₂ but also from other greenhouse gases such as methane, nitrous oxide, and hydrofluorocarbons. CO₂ serves as the standard unit for conversion, enabling assessment of energy and resource consumption as well as the environmental efficiency of products and services.

Managing by carbon footprint

Carbon emissions are commonly divided into three scopes: first, direct emissions at production facilities, such as factory operations or agricultural activities; second, indirect emissions from purchased energy sources, primarily electricity; and third, emissions across the entire supply chain, including transportation, distribution, and related activities before products reach consumers.

Vietnam has gradually refined its legal framework to develop a carbon market, notably through Decree No. 119/2025/ND-CP amending and supplementing Decree No. 06/2022/ND-CP on greenhouse gas emissions management and emission quotas, and Decree No. 29/2026/ND-CP establishing a domestic carbon exchange, laying the foundation for carbon credit trading.

Under the domestic carbon market mechanism, companies receive annual emission quotas. Those that exceed permitted levels must purchase carbon credits or invest in technological upgrades to reduce emissions. Current regulations allow companies to use carbon credits to offset up to 30 per cent of excess emissions, with the remainder requiring reductions through technological and management solutions. The mechanism is expected to increase demand for carbon credits, creating opportunities for sectors capable of carbon sequestration, particularly forestry.

Forest carbon credits can be generated through two main pathways: reducing emissions and increasing carbon sequestration capacity. Measures such as limiting deforestation, reducing biomass burning, changing production practices, improving forest quality, and extending harvesting cycles can all generate credits. However, projects must undergo registration and measurement, reporting, and verification (MRV) processes under international standards, with independent validation required for recognition.

Dr. Phuong noted that remote sensing technology and satellite data are playing an increasingly important role in monitoring forest changes and assessing carbon sequestration capacity. Programs such as Landsat provide free data that enhances accuracy and transparency in forest resource management and the development of the carbon credit market.

Example from Gia Lai

According to the Gia Lai Provincial Forest Protection Department, the central highlands province has a natural area of more than 2.15 million ha, including nearly 988,000 ha of forest land - over 692,000 ha of natural forest and more than 295,000 ha of planted forest. On average, each hectare of forest can absorb about 4-6 tons of CO₂ a year. At an estimated average of 5 tons per hectare annually, Gia Lai’s forests could absorb nearly 4.9 million tons of CO₂ each year.

If converted into carbon credits and traded at a reference price of about $10 a ton, the potential economic value could reach into the tens of millions of dollars annually. This represents significant potential but requires careful, sustainable, and properly regulated exploitation.

Experts believe forest carbon credit trading could generate sustainable revenue for the State budget and forest owners while promoting forest protection and development, improving livelihoods for local communities, particularly ethnic minorities who depend on forests. With its existing potential and coordinated action from authorities, forest carbon credits are expected to become a new growth path for Gia Lai’s forestry sector, protecting “green assets” while creating sustainable socio-economic value.

To develop a national standard framework for forest carbon credits, Vietnam is considering two credit-generation approaches: afforestation and reforestation (ARR) and improved forest management (IFM). Recent studies indicate that IFM applied to existing planted forests, especially extending harvesting cycles, is a feasible short-term approach to increase biomass stocks and stored carbon.

However, implementing this measure faces challenges. Beyond requiring advanced forest management techniques, the model must be applied at sufficient scale while ensuring environmental integrity, economic efficiency, and compatibility with current management conditions. In many localities, planted forests remain fragmented, and decisions on harvesting, replanting, or extending business cycles largely depend on smallholder participation. Building linkage mechanisms and encouraging forest owner participation is therefore becoming a key factor in developing the forest carbon credit market.

Defining forest carbon rights

According to Associate Professor Nguyen Ba Ngai, Vice Chairman of the Vietnam Forest Owners Association (VIFORA), Vietnam holds a major advantage with its diverse forest ecosystems, including more than 10.1 million ha of natural forest and 4.7 million ha of planted forest. Carbon density in forest biomass ranges from 29 to 146 tons per hectare, creating substantial potential for conversion into carbon credits. However, significant challenges remain for Vietnam to become a strong carbon economy.

First is the legal gap. The current Law on Forestry focuses mainly on tangible products such as timber, while carbon is categorized as a forest environmental service rather than an independent asset, complicating the determination of ownership, usage rights, and revenue sharing from carbon credits.

Second is ownership determination. About 87 per cent of Vietnam’s forest area is publicly-owned and managed by the State, while forest owners and local communities directly protect forests and deliver emission reductions. Without clear allocation mechanisms, disputes or risks of double-selling carbon credits could arise. Communities living near forests often receive benefits that do not match their contributions despite their crucial role in protection.

And third is technical complexity and market risk. To gain international recognition, carbon credit projects must undergo rigorous MRV processes under international standards, requiring significant cost and expertise.

To capitalize on opportunities in the green economy, Associate Professor Ngai proposed several strategic solutions. Carbon rights should be legalized as a special type of asset, incorporated into the Law on Forestry and recognized as an intangible asset under the Civil Code to facilitate investment and transfer. Transparent benefit-sharing mechanisms are also needed, allowing the State to delegate or assign benefit rights to forest owners while ensuring most revenue is reinvested in local communities. Establishing a blockchain-based carbon credit registry is seen as a way to prevent fraud and enhance market transparency.

The global trend is to separate carbon rights from land ownership to facilitate commercialization and participation in international green finance markets. For Vietnam, completing the forest carbon rights framework would not only enable the effective use of green resources but also strengthen the country’s position in the global green economy transition.

VET-Chu Khoi

PM requests to develop EV charging infrastructure in apartment buildings

Thu, 02 Apr 2026 02:00:00 GMT

The order is part of efforts to promote the transition to green transport.

The Prime Minister has ordered ministries, agencies and localities to accelerate the development of electric vehicle (EV) charging infrastructure in apartment buildings and urban areas, addressing key bottlenecks in the transition to green transport.

Under Official Dispatch No. 27/CD-TTg dated March 31, 2026, the Prime Minister emphasized that the shift to electric mobility is an inevitable trend in the broader transition toward green growth, digital transformation and clean energy.

However, charging stations, parking spaces and battery swap facilities in residential complexes remain limited and poorly coordinated. Inadequate parking planning has also placed pressure on internal power systems and raised fire safety concerns.

The Prime Minister instructed relevant authorities to improve communication and ensure transparency in green transport development, while reviewing and refining policies, standards and planning frameworks to avoid inefficiencies and misconduct.

The Ministry of Construction has been tasked with finalising regulations on integrating EV charging infrastructure into urban planning by the second quarter of 2026, and issuing updated technical standards for apartment buildings, including fire safety requirements, by April 30.

Meanwhile, the Ministry of Industry and Trade will develop national technical standards for charging equipment and systems by the third quarter.

VnEconomy-Hà Lê

Vietnam’s energy transition to go ahead

Sun, 29 Mar 2026 02:00:00 GMT

A decisive period looms for Vietnam’s energy transition as efforts move from planning to action.

Vietnam’s energy transition is moving from policy formulation to implementation, creating a new landscape for investors and developers navigating regulatory reforms, market restructuring, and rising ESG (environmental, social, and governance) expectations. Industry experts at a recent BritCham Vietnam webinar entitled “Vietnam’s Energy Transition 2026: Unlocking Opportunities for Investors Developers” highlighted how the country is entering a decisive phase shaped by National Power Development Plan VIII (PDP8), evolving market mechanisms, and the growing role of private capital.

Regulatory shift

Mr. Giles Cooper, Partner at Allens, Hanoi Branch, said Vietnam is moving into a phase where policy direction is translating into actionable regulations. “We are definitely moving into the implementation phase of PDP8,” he noted, emphasizing that recent resolutions from the Politburo, National Assembly, and government collectively establish a coordinated policy environment for energy projects.

A central theme is the expanded role of private investment. Given the scale of capital required for new generation capacity, authorities have explicitly called for stronger participation from both foreign and domestic investors, including through public-private partnerships and transmission projects - areas previously dominated by State entities.

Structural reforms are also being introduced to modernize the electricity market. Among the most significant is the planned adoption of a two-component retail tariff system combining capacity charges and energy charges, a model widely used internationally to improve cost recovery and ensure stable payments to generators.

Administrative streamlining is another priority as the government has committed to reducing approval timelines and bureaucratic steps that have historically delayed projects. At the same time, policymakers have acknowledged the need for stronger contract enforcement mechanisms, particularly in dispute resolution - a longstanding concern among investors.

Previously, even minor adjustments to master plans required approval from the highest levels of government, causing prolonged delays. New rules now allow certain amendments at the provincial level, enabling planning to better align with on-the-ground realities.

Recent regulations are also lowering barriers to market entry. Circular No. 66 on investor selection allows special purpose vehicles without prior project experience to participate, provided they demonstrate adequate financial and technical backing. The measure aims to unblock stalled projects while encouraging partnerships, including technology transfer to local partners.

Meanwhile, Direct Power Purchase Agreement (DPPA) reforms are expected to further transform the market. Proposed amendments would expand participation to industrial parks, economic zones, and major energy users such as data centers and electric vehicle charging operators.

Crucially, the removal of tariff caps on physical direct-wire DPPAs could restore commercial flexibility and stimulate private renewable projects, particularly rooftop solar installations that face fewer land and permitting constraints.

Mr. Cooper also highlighted emerging regulations supporting new technologies. Circular No. 62 establishes Vietnam’s first tariff framework for standalone battery energy storage systems connected to the grid - a foundational step towards integrating variable renewable energy and enhancing system reliability.

Competitive market reality

While regulatory reforms are creating opportunities, developers face a markedly different environment from the rapid expansion triggered by feed-in tariffs.

Mr. Murthy Nuni, Managing Director of Marshal Green Energy Limited, described Vietnam’s power sector as entering a more disciplined phase shaped by market fundamentals rather than subsidies. Vietnam currently has about 87,600 MW of installed capacity, with renewables accounting for roughly 28 per cent of capacity but only about 12 per cent of actual generation, reflecting curtailment and operational challenges.

Solar projects generated approximately 20.5 billion kWh in the first ten months of 2025, operating at an average capacity of around 15 per cent, with big projects achieving about 25 per cent. Curtailment remains a significant risk, particularly during periods of high hydropower output following severe floods and storms.

Despite these challenges, PDP8 sets aggressive expansion targets through 2030, projecting total investment of about $134.7 billion across all power sources, according to Mr. Nuni. However, grid expansion has lagged behind generation growth. Renewable projects can be built relatively quickly - solar within a year and wind in about two years - but transmission infrastructure can take two to four years or longer due to land acquisition and permitting hurdles.

The government is now planning substantial transmission investment through 2030, though Mr. Nuni suggested it may still fall short of what is needed to integrate large volumes of intermittent renewable energy.

Market mechanisms are also evolving. New policies introduce annual ceiling prices for different energy sources, with solar tariffs significantly lower than earlier feed-in tariff levels. As a result, developers must adapt to tighter margins and competitive bidding processes.

Implementation at the provincial level is still maturing. Though investor selection processes are being decentralized, some projects have attracted only a single bidder, indicating that competitive frameworks are still developing.

Looking ahead, hybrid models combining renewable generation with storage are expected to play a key role, particularly for corporate buyers seeking reliable green electricity. “We see strong potential in projects that integrate renewables with storage to provide firm power around the clock,” Mr. Nuni said, adding that many corporate customers currently prefer wind energy because it is easier to integrate than large volumes of solar power.

As tariffs decline, technological innovation will become essential. Larger wind turbines in the 8-12 MW range for nearshore and offshore projects could significantly reduce costs, while improved engineering and project planning will be critical to maintaining profitability.

Gateway to capital

Beyond regulatory and market shifts, ESG performance is emerging as a decisive factor in project viability and access to financing.

Dr. Hanh Nguyen, Principal Technical Consultant at ERM, said ESG considerations have become central to risk management and investor confidence in Vietnam’s renewable sector. “ESG is no longer just about compliance - it is central to investment readiness,” he added.

With Vietnam’s renewable industry entering a new phase driven by commercial fundamentals rather than subsidies, opportunities are expanding into offshore wind, energy storage, and transmission infrastructure. In this environment, projects must demonstrate robust ESG performance to secure international financing.

The concept of a “just transition” is also gaining prominence, emphasizing that the shift to net-zero must be fair and socially responsible. This includes issues such as gender equality, energy access, workforce transition, and community well-being.

Different stakeholders have different priorities. Investors focus on social risks and supply chain transparency, governments prioritize workforce reskilling and social protection, and communities seek resilient livelihoods and shared benefits. Developers must therefore navigate such expectations to build inclusive and sustainable projects.

Globally, ESG frameworks are expanding rapidly, from the UN Sustainable Development Goals to supply chain regulations and sustainable finance standards. This momentum is influencing investor requirements in Vietnam.

Key environmental issues include biodiversity protection, marine impacts for offshore wind, pollution control, and climate resilience. Social risks often relate to land acquisition, livelihood impacts - particularly for fishing communities - labor conditions, and stakeholder engagement. Governance factors include strong management systems, supply chain due diligence, and alignment with human rights principles.

Dr. Hanh emphasized that ESG integration should begin at the earliest stages of project development, moving beyond a compliance-based approach towards strategic integration at both the corporate and project levels.

One case study highlighted the impact of strong ESG performance. The Lotus Wind Power Project in central Quang Tri province secured a $173 million green loan package from international lenders after comprehensive environmental and social assessments, mitigation planning, and community engagement measures. “Strong ESG performance strengthens community acceptance and enhances long-term resilience,” he concluded.

VET-Diep Linh

Hue receives $10 million to boost climate change adaptation

Wed, 25 Mar 2026 09:00:00 GMT

The project seeks to develop agricultural markets and value chains by positioning businesses and cooperatives as lead players.

The Hue City People’s Committee held a working session with the Luxembourg Development Cooperation Agency (LuxDev) on March 23 to discuss technical infrastructure projects funded by the Green Climate Fund (GCF) and the Government of Luxembourg.

During the meeting, the parties officially launched Project VIE/301, titled “Climate Adaptation and Finance for Resilience.” With a total budget of $10 million, the project is scheduled for implementation between 2025 and 2029.

The initiative aims to enhance Hue’s climate adaptation capacity through three primary pillars: Implementing ecosystem-based solutions; Improving early warning systems; and Promoting innovative financial models to support climate-resilient agricultural value chains.

The meeting marked a significant transition from the preparatory phase to full-scale implementation, following a comprehensive mid-term assessment involving various relevant agencies. This assessment served as a foundation to review and refine project components to ensure they align with local conditions.

Following discussions, all parties agreed to adjust the implementation framework. The project will now prioritize specialized technical coordination over traditional administrative mechanisms to ensure higher efficiency.

A key highlight of the project is a shift in forestry strategy. Rather than focusing solely on new afforestation, the project will adopt a flexible approach that includes assisted natural regeneration, forest enrichment, and the restoration of degraded forests. Particular emphasis will be placed on developing native plant species that are highly adaptable to the local climate and coastal sandy terrain.

Furthermore, the project seeks to develop agricultural markets and value chains by positioning businesses and cooperatives as lead players. This strategy is expected to enhance economic efficiency and ensure the long-term sustainability of the region's agricultural sector.

Vneconomy-Nguyễn Thuấn

EU pledges €20mln to support Vietnam's forestry sector

Tue, 24 Mar 2026 23:18:00 GMT

The project expected to contribute to promoting green, sustainable, and inclusive growth while reducing vulnerability to climate change in Vietnam.

The European Union (EU) has pledged a grant of €20 million to support Vietnam's forestry sector, which is expected to contribute to promoting green, sustainable, and inclusive growth while reducing vulnerability to climate change in Vietnam.

The Ministry of Agriculture and Environment, in collaboration with the EU Delegation to Vietnam, organized a ceremony to sign the financial agreement for the project in Hanoi on March 24.

Under the agreement, the EU commits to providing a non-refundable grant of €20 million from official development assistance (ODA) funds to implement the project over five years.

Addressing the ceremony, EU Commissioner for International Partnerships Jozef Síkela highlighted the need for the EU and Vietnam to strengthen cooperation in forest protection, monitoring, and prevention of deforestation, ensuring compliance with EU regulations, and expanding cooperation into areas such as circular economy, agriculture, and environment.

He expressed hope that the two sides could implement a circular economy project and complete approval by the end of 2026.

Deputy Minister of Agriculture and Environment Nguyen Quoc Tri hoped that the EU would join Vietnam in promoting the blue economy through enhanced marine governance, coral reef conservation, mangrove forests, and the transfer of renewable energy technology. Vietnam also proposed that the EU share experiences in ensuring water security and exploiting essential mineral resources.

VnEconomy-Chu Khôi

EU–Vietnam Global Gateway Forum in Hanoi spotlights investment push for sustainable growth

Tue, 24 Mar 2026 04:30:00 GMT

From policy dialogue to concrete deals, the EU–Vietnam Global Gateway Forum marks a push to scale up green investment and long-term economic cooperation.

High-level delegates and leaders attend the EU–Vietnam Global Gateway Business and Investment Forum. (Photo: EU Delegation in Vietnam)

The EU–Vietnam Global Gateway Business and Investment Forum opened in Hanoi on March 24, bringing together policymakers, financiers, and business leaders from both sides to advance cooperation and unlock new investment opportunities in sustainable development.

Held under the theme “Investing together in a sustainable future,” the Forum gathered around 500 delegates, including Vietnamese Deputy Prime Minister Ho Duc Phoc, representatives from the European Union, Vietnamese government agencies, international financial institutions, and leading corporations.

The event comes shortly after Vietnam and the EU upgraded their relationship to a Comprehensive Strategic Partnership, marking a new phase of deeper economic and political engagement.

Co-organized by the EU Delegation to Vietnam, the Foreign Investment Agency under the Ministry of Finance, and the European Chamber of Commerce in Vietnam (EuroCham), the Forum aims to bridge policy dialogue with practical business collaboration, with a focus on energy transition, sustainable transport, and green–digital transformation.

Deputy Prime Minister Ho Duc Phoc highlights Vietnam–EU cooperation at the Global Gateway Business and Investment Forum in Hanoi. (Photo: VnEconomy)

Addressing the event, Deputy Prime Minister Ho Duc Phoc reaffirmed the importance of the EU as a long-term partner, noting that cooperation between the two sides has developed strongly over more than three decades, supported by a growing network of agreements, particularly the EU–Vietnam Free Trade Agreement (EVFTA).

He highlighted the EU’s role as one of Vietnam’s leading economic partners, with increasing trade and investment flows and significant contributions from European businesses in areas such as innovation, green transition, and climate action.

Looking ahead, the Deputy Prime Minister called for enhanced cooperation in areas including green finance, technology transfer, high-quality investment, and new growth drivers such as the digital and circular economy. He also urged EU member states to accelerate the ratification of the EU–Vietnam Investment Protection Agreement (EVIPA) to strengthen investor confidence and the legal framework for bilateral investment.

European Commissioner for International Partnerships Jozef Síkela delivers his speech at the event. (Photo: VnEconomy)

Speaking at the Forum, European Commissioner for International Partnerships Jozef Síkela underlined the shift from commitments to implementation.

“Earlier this year, we upgraded the relationship between Vietnam and the European Union to a Comprehensive Strategic Partnership. Today, we are turning this into concrete investments that support Vietnam’s growth,” he said.

At the center of the discussions was the announcement of a €560 million investment package by the EU to support Vietnam’s energy transition and economic development.

“We are launching a package of investments worth €560 million to support Vietnam’s energy transition and economic development,” Mr. Síkela said, noting that Vietnam’s next stage of development depends on reliable energy supply and the creation of quality jobs.

A key component of the package is the Bac Ai pumped-storage hydropower plant, a 1,200-megawatt project valued at around €900 million. The facility is expected to enhance grid stability and improve the reliability of renewable energy by storing electricity during periods of surplus and releasing it when demand rises.

In parallel, the EU introduced a €40 million Sustainable Transport Facility designed to mobilize more than €1 billion in investments in rail and urban transport. The initiative will support major infrastructure projects, including the planned Hanoi–Ho Chi Minh City high-speed railway.

“Europe has the experience, technology and companies to support this. This facility will help turn these plans into concrete projects,” Mr. Síkela said.

The Forum also highlighted efforts to expand access to sustainable finance. A €200 million financing agreement between the European Investment Bank (EIB) and Techcombank was announced to support Vietnamese private sector investments in renewable energy, energy efficiency, and clean transport.

EIB Vice-President Nicola Beer. (Photo: VnEconomy)

EIB Vice-President Nicola Beer stressed the importance of translating financial commitments into tangible outcomes. “As the financing arm of the European Union, the European Investment Bank is here to help turn this commitment into concrete investments on the ground,” she said. “These investments will deliver tangible benefits for citizens – cleaner air, more efficient energy use, better access to sustainable energy, and new opportunities for jobs and growth.”

She added that the EIB is also working with Vietnamese authorities on a €500 million framework loan to support energy transition efforts, particularly in grid infrastructure and transmission.

The Forum featured a series of thematic discussions on sectors seen as key drivers of Vietnam’s sustainable growth, including energy transition, transport infrastructure, and the integration of environmental, social, and governance (ESG) standards in investment and business practices.

Beyond policy dialogue, the Forum also served as a platform for announcing new business and investment deals between European and Vietnamese partners across sectors such as transport, logistics, digital health, and industrial development.

The event also marked the launch of EuroCham’s 2026 Whitebook, which provides policy recommendations aimed at improving Vietnam’s business environment and facilitating the effective implementation of major investment commitments.

Taking place under the EU’s Global Gateway strategy, the Forum reflects a broader effort to mobilize public and private capital for sustainable infrastructure, clean energy, and digital transformation. The initiative is expected to play a growing role in supporting Vietnam’s transition toward a low-carbon, resilient economy.

“These projects show how Global Gateway works in practice,” Mr. Síkela said. “For Vietnam, it means modern infrastructure, cleaner energy and new jobs. For Europe, it means stronger economic ties and new opportunities.”

Vneconomy -Linh Tong

Strong commitment to transition

Tue, 24 Mar 2026 02:20:00 GMT

On the occasion of the EU-Vietnam Global Gateway Business and Investment Forum, H.E. Julien Guerrier, Ambassador of the EU to Vietnam, tells Ly Ha that Vietnam is a key partner in ASEAN and the recent upgrading of bilateral ties will open new opportunities in key sectors.

The EU-Vietnam Global Gateway Business and Investment Forum is being held following the upgrade of bilateral relations to a Comprehensive Strategic Partnership. How do you assess the significance of this Forum for the Vietnam-EU relationship, particularly in promoting cooperative projects on green transition and digital transformation?

The Forum is being held at a meaningful moment in Vietnam-EU relations, following the upgrade of our partnership. Strategically, the Forum matters because it helps translate shared priorities into concrete cooperation by highlighting real, bankable investment opportunities under the Global Gateway framework and bringing the right actors into the same room.

For Vietnamese businesses, this is a practical opportunity on several levels. It allows companies to engage directly with European partners to exchange know-how and technology in priority sectors such as energy, sustainable transport, digital transformation, and environmental, social, and governance (ESG)-related solutions.

Organized in close collaboration with the Foreign Investment Agency (FIA) at the Ministry of Finance and EuroCham Vietnam, the Forum will enable companies to build partnerships, form consortiums, and shape future business opportunities that can scale beyond a single project.

Importantly, the Forum also provides a platform to finance projects, as development banks, commercial banks, and investors will be present to discuss what it takes to make projects financeable and investment-ready.

It also creates space for an open conversation on the policy, legislative, and market barriers that can hold back investment, and on practical options to address those barriers so opportunities can be realized more quickly and sustainably.

In short, the Forum is designed to move from dialogue to delivery: connecting partners, aligning standards, unlocking finance, and helping remove obstacles so that Vietnam-EU cooperation on the green and digital transitions produces tangible results for businesses and people.

- Within the framework of the Global Gateway strategy and the new Comprehensive Strategic Partnership, how does the EU define Vietnam’s strategic role in the region? What are the key priority sectors where both sides expect to achieve breakthrough cooperation and tangible results?

The EU sees Vietnam as a key partner in ASEAN, not only because of its economic dynamism and market potential but also due to its growing role in regional and global value chains and its strong commitment to the dual transition: green and digital.

Within the Global Gateway strategy, the EU sees Vietnam as a place where both sides can jointly deliver high-quality, sustainable, and impactful investments in a win-win model.

As the partnership deepens, we expect breakthrough cooperation in several areas.

First is the energy transition, including renewable energy deployment, grid modernization, storage, and energy efficiency. Second is sustainable transport and greener logistics, particularly solutions that reduce emissions while strengthening connectivity. Third is trusted digital transformation, covering digital infrastructure, cybersecurity, and practical applications that help businesses improve productivity and integrate into global supply chains. Fourth is ESG, strengthening sustainability standards, transparency, and responsible business practices that make projects more bankable, resilient, and attractive for long-term investment.

Together, these four areas can help translate the upgraded relationship into tangible outcomes that generate long-term value, growth, and jobs for both Vietnam and Europe.

- Green transition and digital transformation are the two cross-cutting pillars of this year’s Forum. In your view, what are the greatest opportunities for Vietnam in this dual transition, and what specific support plans does the EU have to help Vietnamese businesses meet these standards?

For Vietnam, the dual transition is not only a global requirement but also a major opportunity to upgrade growth and competitiveness. In my view, the greatest opportunity lies in moving up the value chain: producing in a more efficient, cleaner, and more transparent way, with stronger traceability and better compliance with international standards. This will help Vietnamese companies access the EU market while strengthening their global competitiveness.

In terms of support, the EU’s approach combines finance, technology, and capacity building. On financing, we are mobilizing investments through the Global Gateway and European financial institutions. The EU, the European Investment Bank, and member states’ development banks have put in place dedicated support packages for Vietnam’s Just Energy Transition, while new facilities are being prepared to promote more sustainable transport. Together, these efforts help create enabling conditions for clean investment and decarbonization.

At the same time, we support the sharing of technology, know-how, and standards, for example in emissions measurement, energy efficiency, supply chain transparency, and responsible business practices.

Critically, we also focus on skills and training, especially for small and medium-sized enterprises (SMEs), so they can build practical capabilities, from carbon footprint calculation and sustainability reporting to responsible sourcing, quality management, and basic cybersecurity readiness. SMEs are not expected to become perfect overnight. What matters is a clear and credible upgrading roadmap, gradual but in the right direction, so that more Vietnamese businesses can participate effectively in Europe’s greener value chains, promote sustainable production and consumption, and contribute to Vietnam’s net-zero pathway.

- Can you tell us about the EU’s core ESG requirements, as well as the support mechanisms available to help Vietnamese enterprises - especially SMEs - adapt and enhance their competitiveness?

For the EU, ESG is a framework for ensuring that growth is anchored in good governance, social responsibility, and environmental sustainability. At its core, the EU places emphasis on three elements: transparency and measurable performance; responsible business conduct across supply chains; and credible pathways for emission reductions linked to real operational improvements.

In practical terms, this increasingly means stronger data and systems: on emissions, traceability, labor and safety standards, and governance and compliance. For SMEs, this can feel demanding, but it is also an opportunity to strengthen competitiveness and become eligible suppliers for larger buyers and international partners.

In terms of support, the EU focuses on capacity building, guidance, and practical tools - often tailored by sector - to help companies take gradual action. We also work to connect businesses with European partners, networks, and, where relevant, financing channels. The most effective approach is to help SMEs prioritize: start with the most material requirements, build internal capability, and then progressively raise the level of compliance as the business grows.

- Though the EU-Vietnam Free Trade Agreement (EVFTA) has delivered positive trade outcomes, EU FDI inflows into Vietnam remain below their potential, accounting for only about 2-5 per cent of total EU outward FDI globally. In your view, what are the main barriers constraining this investment flow?

The EVFTA delivers, as we see in our growing trade and investment figures. Trade in goods reached €76 billion ($87.19 billion) in 2025. Full and effective implementation will ensure mutual benefit, unlock the Agreement’s full potential, and make it a solid basis for our future ambitions.

Looking at our main areas of cooperation today - transport and renewable energy - several constraints stand out.

First, the scale and quality of EU investment in Vietnam are still below potential: many projects remain relatively small, and the share of high-tech, RD-driven investment is not yet as important as it could be given Europe’s strengths.

Second, investment is concentrated in a few regions and traditional sectors, while areas where we would like to see more momentum, such as renewable energy, sustainable transport infrastructure, and advanced technologies, have not yet attracted enough large-scale projects.

Third, absorption capacity: skilled talent, innovation ecosystems, and the ability to move from operating technology to developing and adapting higher-value technologies.

- What specific improvements does the EU expect from Vietnam in order to attract high-quality investment, particularly in renewable energy and sustainable transport?

To unlock more high-quality investment, I would highlight three priorities.

First, a stable, transparent, and consistently-enforced regulatory framework, particularly for renewables and infrastructure. Second, faster and clearer administrative procedures, including digitalized processes and an effective “one-stop” mechanism so that investors can track progress and reduce uncertainty. Third, greater investment in talent, RD, and innovation ecosystems, so that Vietnam can not only attract capital but also absorb technology and create sustained added value.

If these areas move forward, I am confident Vietnam can capture the opportunity created by supply chain restructuring and attract more large-scale, green, and resilient EU investment, especially in renewable energy and sustainable transport. The joint statement upgrading our relations is setting the right ambition and targets.

- The Vietnam-EU relationship is regarded as one of the most dynamic and wide-ranging partnerships between the EU and ASEAN. How do view the potential for both sides to jointly explore and create sustainable added value for Vietnam and Europe?

I agree that Vietnam-EU relations are among the most dynamic partnerships between the EU and ASEAN, and as our cooperation deepens, there is significant potential to expand into emerging, higher value added areas.

Transport cooperation is gaining momentum as a priority under the EU Global Gateway in Vietnam, with growing interest from European industry in supporting Vietnam’s ambitious investment plans, particularly in railways. The EU, together with Team Europe, is eager to share EU experience, know-how, and technology for Vietnam’s high-speed rail projects.

We are establishing a new €40 million ($45.9 million) transport facility to promote scale and impact in the development of public infrastructure projects on the ground.

In terms of emerging areas of cooperation that hold strong potential to create sustainable added value for both Vietnam and Europe, I would highlight four.

First is the high-tech ecosystem. The EU tech business offer brings strengths in advanced technologies, standards, equipment, and research, while Vietnam is rapidly developing its manufacturing base and workforce. With the right cooperation on skills, standards, and industry links, this is already becoming a high-priority area for both sides.

Second is AI and trusted digital innovation, where the EU places strong emphasis on trust, meaning that innovation should go hand-in-hand with safety, ethics, cybersecurity, and data protection.

Third is the circular economy, from sustainable product design and materials to recycling, waste reduction, and resource efficiency, which can strengthen competitiveness while reducing long-term costs and environmental impact.

Fourth is cybersecurity and trusted digital infrastructure, because as digitalization accelerates, cyber resilience becomes a foundational condition for trade and investment.

For our ambitions to succeed, the joint statement on the upgrade of our relations also reminded us that our initiatives need to be interesting for business and create opportunities that help us capitalize on the strengths of each side for the benefit of Vietnam and the EU. This includes an open, transparent, and predictable regulatory and procurement environment. The EU, as a trusted and secure partner, will have a lot to bring if the conditions are right.

We are working to develop a number of new flagship, implementation-ready projects in these areas. I believe the EU and Vietnam can create sustainable added value economically, technologically, and in terms of the quality and resilience of growth.

VET-Ly Ha

Journey of continued growth.

Tue, 24 Mar 2026 02:15:00 GMT

The upgrade of ties to a Comprehensive Strategic Partnership adds further momentum to a Vietnam - EU relationship already developing in a positive manner.

Vietnam and the EU announced the upgrade of their bilateral relationship to a Comprehensive Strategic Partnership on January 29, during the official visit to Vietnam by the President of the European Council António Costa, marking a significant milestone in their 35 years (November 28, 1990 - November 28, 2025) of bilateral relations and shared commitment to peace and prosperity. The upgrade reflects the breadth and depth of cooperation developed over more than three decades.

“For 35 years, our partnership has grown in depth and ambition,” President Costa said. “This upgrade fully captures the breadth and depth of our collaboration to date and our expectations for its future evolution - on trade, on green and digital transformation, on security, and on people-to-people ties.”

Bright spots.

One of the highlights in Vietnam - EU relations is trade and investment cooperation. After more than five years of implementation, the EU-Vietnam Free Trade Agreement (EVFTA) has led to remarkable growth in bilateral trade.

The most-recent figures from the National Statistics Office at the Ministry of Finance put trade turnover between Vietnam and the EU at $73.8 billion in 2025, an increase of 7.8 per cent against 2024. Of this, Vietnam’s exports to the EU totaled $56.2 billion, an 8.6 per cent increase, while imports reached $17.6 billion, up 5.4 per cent. The trade balance for the year was in surplus to Vietnam, by $38.5 billion, a 10.1 per cent ($3.5 billion) increase compared to the previous year and a record high for this market.

According to the Vietnam Chamber of Commerce and Industry (VCCI), significant milestones such as the Framework Agreement on Cooperation (FCA) in 1995 and the Vietnam - EU Comprehensive Partnership and Cooperation Agreement (PCA) signed in 2012 have contributed to shaping an increasingly stable legal framework for bilateral relations.

“The cooperative relationship between Vietnam and the EU since 1990 is seen as a strong, comprehensive, and increasingly in-depth development process,” said Mr. Dau Anh Tuan, Vice Secretary-General and Director of the Legal Department at VCCI. “Starting from humanitarian issues, cooperation between Vietnam and the EU has gradually expanded to many key areas, especially trade and investment.”

From a bilateral trade volume of less than $200 million in the early 1990s, he continued, this figure had reached nearly $74 billion by 2025, reflecting the increasingly close economic ties between the two sides. “Notably, in the context of a volatile global economy, the EVFTA has contributed to maintaining the positive growth momentum of bilateral trade, with an average growth rate of approximately 10 per cent a year,” he added. “The EU is currently Vietnam’s largest trading partner and an important export market for many of its key products, such as electronics, textiles, footwear, and agricultural products (coffee, cashews, and seafood), and is also a major source of machinery, technology, pharmaceuticals, and industrial equipment.”

Regarding investment, the EU is the sixth-largest investor among 153 countries and territories investing in Vietnam, with total FDI from EU enterprises in Vietnam standing at $32.39 billion. Thousands of EU investment projects operate effectively in Vietnam, and the EU business community continues to expand its investments in the country. Conversely, Vietnam currently has 98 investment projects in the EU, with total capital of $434.88 million.

According to Mr. Tuan, the EU is one of Vietnam’s important foreign investment partners, with a significant presence of investors from the Netherlands, Germany, France, Luxembourg, and Denmark. “EU capital flows are primarily concentrated in the manufacturing and processing industries, energy, infrastructure, and high-quality services,” he added. Notably, EU projects often feature high technology content, advanced governance standards, and a commitment to sustainable development, thereby making a positive contribution to Vietnam’s growth model transformation.

According to Deputy Minister of Foreign Affairs Le Thi Thu Hang, looking to the next 35 years and beyond, with a solid foundation and shared vision, along with the upgrade of relations to a Comprehensive Strategic Partnership, there is confidence in a journey of continued growth for Vietnam - EU relations, with broader cooperation space and increasingly high and sustainable quality.

New horizons.

Given ongoing development trends worldwide, Vietnam - EU cooperation faces open doors in various fields. In particular, the Comprehensive Strategic Partnership will provide a strengthened framework for cooperation across a wide range of areas, including trade and investment, climate action, energy transition, digital transformation, security and defense, human rights, and people-to-people exchanges.

Under the Partnership, both sides have great potential for cooperation in the fields of trade, sustainable development, innovation, the maritime economy, governance, security, and people-to-people exchanges. The EU wishes to strengthen cooperation with Vietnam in traditional areas such as trade and investment, agriculture, sustainable development, and climate change response, while expanding cooperation into new areas such as the green transition, the digital transformation, a just energy transition, infrastructure, and transport connectivity, commensurate with the level of the Partnership and becoming a model of cooperation between the EU and a Southeast Asian country.

From a European perspective, Mr. Alain Cany, Chairman of the EuroCham Advisory Board and Country Chairman of Jardine Matheson Vietnam, said this progress brings greater confidence, especially in the long term. “When making major investment decisions far from home, involving not just a few million dollars but substantial capital commitments, stability is essential,” he added. “Vietnam has consistently offered political stability, a talented workforce, and a strong position as a regional hub.”

Vietnam had also previously established comprehensive partnerships with several European countries, including France and Germany. However, he continued, having this framework at the EU level - where decisions on trade and investment are driven - provides stronger assurance for long-term engagement. It signals to European boardrooms that Vietnam is a market where long-term strategies can be confidently developed.

Mr. Tuan believes that building upon traditional areas of cooperation such as trade, investment, and agriculture presents both sides with opportunities to expand cooperation strongly into new, high-potential, and strategic areas such as the green transformation, the digital transformation, a just energy transition, infrastructure development, and connectivity.

Notably, cooperation in science, technology, and innovation is expected to become a new pillar in bilateral cooperation, leveraging Europe’s strengths in science and technology, digital transformation, and connectivity to support Vietnam in enhancing its competitiveness and transforming its growth model.

At the same time, upgrading the relationship will facilitate more effective utilization of the EVFTA and accelerate the ratification process of the EU-Vietnam Investment Protection Agreement (EUVIPA), thereby improving the business environment, increasing investor confidence, and attracting high-quality capital flows from the EU to Vietnam.

Areas such as environmental protection, the green economy, the circular economy, the marine economy, and clean energy will also continue to open up many opportunities for substantive cooperation, contributing to shaping Vietnam - EU economic relations in a sustainable, balanced, and long-term direction.

According to the Ministry of Industry and Trade, in its sixth year of implementation, fulfilment of the terms within the EVFTA has nearly reached 100 per cent. This is a “golden opportunity” for Vietnamese businesses to maximize the advantages of the Agreement, and also a crucial stage for transforming themselves toward the green and sustainable development trends found in the EU.

To further exploit the benefits of the EVFTA in the future, industries and businesses must continue to standardize production, better meet the technical standards of EU buyers, and promote exports while focusing on increasing added value, especially in sectors where Vietnam holds advantages, such as agriculture, fisheries, and manufacturing.

Next practical steps.

Mr. Cany said Vietnam offers political stability and is a dynamic and growing market, meaning that European investors can commit for the long term and select the right partners. “Vietnam offers much more than low-cost labor,” he added. “It has a young and capable workforce, a stable political environment, and strong growth ambitions. For investors who commit for the long term and choose the right partners, the opportunities are substantial.”

To promote Vietnam - EU economic relations in a more substantive and effective manner in the future, Mr. Tuan pointed out that Vietnam needs to implement a comprehensive set of solutions with clear and consistent policy directions. Firstly, continuing the effective implementation of the EVFTA while simultaneously urging the bloc to expedite the ratification of the EUVIPA is crucial in strengthening the legal framework and creating a transparent and stable investment environment, thereby attracting more high-quality capital flows from the EU.

It is also necessary to strengthen cooperation in green transition and sustainable development, considering this a strategic pillar of cooperation. Leveraging the EU’s strengths in technology, green finance, and environmental standards will not only help Vietnam accelerate the transition to a green growth model, develop a circular economy, and reduce carbon emissions, but also open opportunities for it to participate more deeply in global green value chains and better meet the increasingly stringent requirements of the EU market.

Furthermore, it is necessary to strengthen business connections, especially for small and medium-sized enterprises, through trade promotion activities, partner networking, supply chain development, and technology transfer promotion, thereby transforming commitments into concrete and sustainable business opportunities.

Meanwhile, the continued improvement of the investment environment, the enhancement of human resources quality, and infrastructure development play a crucial role in improving the capacity to absorb and effectively exploit opportunities from the EU. These reforms will not only increase the attractiveness of high-quality investment capital but also promote technology diffusion and enhance production capacity and added value in the economy, thereby creating a solid foundation for the stable, sustainable, and long-term development of Vietnam - EU economic relations.

VET-Ngoc Lan

Vietnam approves updated JETP plan to accelerate energy transition

Tue, 24 Mar 2026 02:00:00 GMT

The plan seeking to ensure energy security while supplying sufficient electricity for economic growth.

Deputy Prime Minister Bui Thanh Son has approved a revised plan to implement the Just Energy Transition Partnership (JETP), aimed at accelerating Vietnam’s shift toward a cleaner and more sustainable energy system.

The plan aligns with the national power development strategy for 2021–2030, with a vision to 2050, and seeks to ensure energy security while supplying sufficient electricity for economic growth, national defence and daily life.

It outlines a roadmap for a “just” energy transition, promoting renewable and new energy sources alongside more efficient energy use, contributing to Vietnam’s net-zero emissions target. By 2030, the country aims to complete a policy and regulatory framework to attract investment in offshore wind, solar power and energy storage.

Vietnam plans to work with global partners to upgrade transmission infrastructure and build a smart grid capable of integrating large-scale renewable energy.

The plan targets the establishment of two renewable energy industry and service hubs by 2030, while linking the transition to job creation, workforce retraining and social welfare for vulnerable groups.

Renewable energy is expected to account for around 47% of total installed power capacity by 2030, while coal-fired power capacity will be capped at just over 30 GW. Emissions from the power sector are projected to peak at no more than 170 million tonnes of CO2 equivalent.

Beyond 2030, Vietnam will continue policy reforms to support clean energy development, aiming for renewables to make up 80–85% of total primary energy by 2050, while phasing out ageing coal plants and further cutting emissions.

VnEconomy-Huyền Vy

PM proposes Russia's Novatek Group to boost energy cooperation

Mon, 23 Mar 2026 23:00:00 GMT

Priority given to the development of large-scale LNG storage facilities in Vietnam.

Prime Minister Pham Minh Chinh met with Russia’s Novatek Group in Moscow on March 23 during his official visit to the country, seeking to advance cooperation in liquefied natural gas (LNG) and energy development.

The PM proposed the group to work closely with authorities, relevant agencies and major state-owned energy firms from Vietnam to implement LNG projects. These include the development of large-scale LNG storage facilities in Vietnam.

He also encouraged Vietnamese companies to strengthen collaboration with Novatek in LNG technology development.

Mr. Leonid Viktorovich Mikhelson, Chairman of Novatek, described Vietnam as one of the world’s fastest-growing economies with rising energy demand. He expressed the company’s interest in expanding investment and cooperation in the country.

Novatek has implemented major LNG projects and developed its own liquefied natural gas technologies in Vietnam. The group is exploring opportunities in Vietnam’s LNG sector, including potential involvement in the Ca Na project in Khanh Hoa province in partnership with firms such as Zarubezhneft of Russia as well as broader participation in the country’s growing gas market.

VnEconomy-Hà Lê

European Commissioner for International Partnerships Jozef Síkela to visit Vietnam

Sun, 22 Mar 2026 00:00:00 GMT

During his visit from March 23-25, the commissioner will participate in the EU-Vietnam Global Gateway Business and Investment Forum that will take place in Hanoi on 24 March.

From 23 to 25 March, European Commissioner for International Partnerships Jozef Síkela will visit Hanoi to increase EU's investments in Vietnam to create jobs and sustainable economic growth under the Global Gateway, according to a press release from the Delegation of the European Union to Vietnam.

On this occasion, the Commissioner will participate in the EU-Vietnam Global Gateway Business and Investment Forum that will take place in Hanoi on 24 March.

The press release quoted Commissioner Síkela as introducing his mission: “Vietnam is an ambitious country with a fast-growing economy, a young population and enormous potential. Together, we want to create new economic opportunities for young people and build a more sustainable economy through investments in clean energy and modern transport. With Global Gateway, we are bringing European companies and investors to Vietnam to turn this ambition into concrete projects that create jobs and support the country’s clean transition.”

During the EU-Vietnam Global Gateway Business and Investment Forum, the Commissioner, together with the European private sector, will announce new EU investments in Vietnam, the press release said, adding that the Business Forum will focus on clean energy and sustainable transport, Global Gateway priority areas in the country. These also support Vietnam’s efforts and commitments under the Just Energy Transition Partnership (JETP) that the EU co-leads.

The Forum aims to strengthen economic ties between Europe and Vietnam, and support Vietnam’s modernisation into a sustainable, digital economy, with strong long-term growth. It will bring together high-level EU and Vietnamese policymakers, private sector leaders, investors and other partners to create new avenues for trade and investment, showcase concrete projects, and build lasting business partnerships.

The visit will take place in a Team Europe approach: joined by the Vice-President of the European Investment Bank Nicola Beer, Commissioner Síkela will lead a delegation of European companies to explore investment opportunities with a focus on sustainable transport.

During his visit, the Commissioner will make several announcements and meet high-level government representatives.

EU Delegation to VN -Khanh Chi

Vietnam, Japan sign ¥90 billion in ODA loans

Sat, 21 Mar 2026 08:20:00 GMT

Under an exchange of notes signed on March 20 in Hanoi, Japan agreed to provide about ¥90 billion ($609 million) in ODA for the fiscal year 2025 to support Vietnam’s green transition and climate resilience.

Deputy Minister of Finance Tran Quoc Phuong, on be half of the Vietnamese Government, and Japanese Ambassador to Vietnam Ito Naoki, on be half of the Japanese Government, on March 20 signed an exchange of notes in Hanoi, under which Japan agrees to provide about ¥90 billion ($609 million) in ODA for the fiscal year 2025 to support Vietnam’s green transition and climate resilience.

The funding will support three priorities – budget support for green growth and climate change adaptation, disaster-resilient rural development and climate-adaptive infrastructure serving production in northern mountainous regions, particularly for ethnic minority communities.

Deputy Minister Phuong was quoted by local media as saying at the signing ceremony that the agreements reaffirm Japan’s position as Vietnam’s largest bilateral donor and reflect strong interest in deepening the Comprehensive Strategic Partnership between the two countries.

He added that the projects also mark a concrete step toward implementing a new-generation ODA model prioritizing green transition and climate resilience.

Ambassador Ito Naoki, for his part, said Japan backs Vietnam’s reform drive and hopes its ODA will be channeled into innovation, semiconductors, green transition and digital transformation, supporting the country’s growth targets for 2026-2030.

Earlier, on March 18, the Japan International Cooperation Agency (JICA) Vietnam Office and the Ministry of Finance co-organized a seminar for the “Program Loan for Green Transformation toward Green Growth and Climate Resilience” valued at ¥50 billion (equivalent to VND8,350 billion or $320 million), in a bid to support Vietnam engage with its sustainability goals.

Vneconomy-Khanh Chi

Ha Tinh proposes $300 mln infrastructure project for climate adaptation

Fri, 20 Mar 2026 08:10:00 GMT

The primary objective is to develop an integrated infrastructure system capable of resisting climate change in the province's central urban hubs.

Ha Tinh province in central Vietnam is currently discussing a proposal for a major infrastructure and urban development project aimed at climate change adaptation, with a total projected investment of approximately VND7.9 trillion (approximately $300 million).

Permanent Vice Chairman of the Ha Tinh Provincial People’s Committee, Mr. Tran Bau Ha, chaired a working session on March 19 with representatives from the Ministry of Finance and the World Bank (WB) to discuss the investment proposal for the "Priority Infrastructure and Climate-Resilient Urban Development Project."

According to the report, the project is proposed as part of the province’s medium-term public investment plan for the 2026–2030 period and has already garnered significant interest and support from the World Bank. The primary objective is to develop an integrated infrastructure system capable of resisting climate change in the province's central urban hubs, the province's former Huong Son district, and surrounding areas.

Of the total investment, World Bank ODA loans will account for roughly 80%, while the remaining 20% will be sourced from the local counterpart budget.

The project aims to significantly reduce flooding, strengthen regional transport links, and effectively tap into the potential of coastal tourism and services. Furthermore, technical assistance components are expected to improve the quality of life for residents, gradually building sustainable urban areas and creating a strong engine for local socio-economic growth.

The project is slated for implementation across several wards and communes, including Thanh Sen, Tran Phu, Ha Huy Tap, Thach Khe, Dong Tien, Thach Lac, Cam Binh, Thach Ha, Huong Son, Son Tien, Son Giang, and Kim Hoa. Implementation and capital disbursement are scheduled to take place between 2027 and 2032.

Vneconomy-Nguyễn Thuấn

First-Ever Vietnamese startup reaches Top 3 in international energy transition awards

Fri, 20 Mar 2026 03:00:00 GMT

Alternō presented its innovative thermal energy storage solution, popularly known as a "sand battery."

Vietnamese startup Alternō has landed a spot in the Top 3 of the "Clean Energy Storage" category at the prestigious international Startup Energy Transition (SET) Award 2026, following a rigorous competition involving more than 470 teams from 79 countries.

The announcement was made in Berlin on March 17.

The SET Award is an international platform for innovators hosted by the German Energy Agency (dena) in cooperation with the Federal Ministry for Economic Affairs and Climate Action (BMWK).

According to the organizers, this marks the first time in the award's 10-year history that a Vietnamese startup has reached the top three in a major category. Alternō was also one of the few representatives from Southeast Asia to make it to the final round, competing alongside energy and Deep Tech firms predominantly from Europe.

At the finals, Alternō presented its innovative thermal energy storage solution, popularly known as a "sand battery." The system utilizes sand to store heat at high temperatures, catering to industrial needs such as agricultural drying and large-scale manufacturing processes.

During their presentation, the development team highlighted that their solution is significantly more cost-effective than traditional chemical-based battery storage. By utilizing abundant, common materials and eliminating the need for rare minerals, the technology is estimated to reduce costs by approximately 50% compared to conventional storage methods while significantly lowering environmental impact.

In terms of practical application, sand battery technology is expected to help businesses reduce their dependency on fossil fuels, particularly coal, in production lines requiring heat. This transition is poised to alleviate pressure on the national power grid and further diversify domestic energy sources.

The solution was highly praised by the international jury for its potential to decarbonize heat-intensive industries—sectors that are historically high emitters and difficult to transition entirely to renewable electricity. This "hard-to-abate" factor was a key reason Alternō stood out among hundreds of global applicants.

Vneconomy-Như Quỳnh

Vietnam sets goal of 6-8% nuclear energy share by 2050

Wed, 18 Mar 2026 01:30:00 GMT

This is one of the key goals set out in the "Strategy for the Development and Application of Atomic Energy for Peaceful Purposes through 2035, with a Vision to 2050."

Nuclear power is projected to account for 6–8% of Vietnam’s total electricity output by 2050, according to a newly approved national strategy that establishes atomic energy as a key driver of energy security and green development.

This is one of the key goals set out in the "Strategy for the Development and Application of Atomic Energy for Peaceful Purposes through 2035, with a Vision to 2050," approved under Prime Ministerial Decision 438/QD-TTg, signed by Deputy Prime Minister Nguyen Chi Dung on March 16.

The long-term plan involves the addition of approximately four large-scale reactors and 10–15 Small Modular Reactors to the national grid to ensure energy security

The strategy aims to develop and apply atomic energy safely and securely to effectively serve socio-economic development, improve public quality of life, and protect the environment. It is also designed to strengthen national energy security and contribute to Vietnam’s commitment to achieving net-zero emissions by 2050.

Regarding nuclear power development, the Strategy sets a goal to complete the construction and safely commence operations of the Ninh Thuan 1 and Ninh Thuan 2 nuclear power plants by 2035. The Government aims for domestic enterprises to account for 30% of the total investment value in the construction and installation of auxiliary components for these projects. Additionally, the plan seeks to deploy at least one nuclear power project utilizing Small Modular Reactor (SMR) technology.

By 2035, Vietnam expects to have finalized its nuclear power infrastructure and established a framework for future projects to ensure safety, sustainability, and efficiency.

In the field of radiation and radioisotope applications, the Strategy targets an average annual growth rate of 10–15% in economic efficiency by 2035.

Vietnam aims to bring its radiation medicine up to advanced ASEAN standards, targeting 20 CT scanners, 10 MRI machines, one imaging scanner, and one to two linear accelerators per million people, alongside a 100% transition to digital X-rays.

Furthermore, the country intends to master advanced nuclear techniques for industrial quality management and material processing, while manufacturing its own radiation and measurement equipment to replace imports.

To bolster scientific and technological potential, the strategy focuses on developing advanced research facilities by 2035. This includes the establishment of two national key laboratories specializing in nuclear power technology and rare earth, uranium, and titanium technologies, as well as three to five advanced laboratories.

The plan also aims to foster four to five research groups capable of mastering nuclear technologies to support power plants and research reactors, while investing in three to five international-standard universities for nuclear power training.

Vneconomy-Gia Huy

Goverment asks to accelerate appraisal for nuclear power project

Tue, 17 Mar 2026 02:00:00 GMT

The Ninh Thuan 1 and Ninh Thuan 2 nuclear power projects are expected to begin operations during the 2030–2035 period.

The Government has asked relevant ministries to accelerate the appraisal of the revised investment policy for the Ninh Thuan 1 nuclear power project.

Under Resolution No.46/NQ-CP of the Government, the Ministry of Finance is tasked with urgently proposing the establishment of the appraisal council in line with relevant regulations.

The council will review the revised investment policy and submit its appraisal results to the Government for consideration, while completing the required documents for submission to the National Assembly at the first session of its 16th tenure in April 2026.

Earlier, the Politburo issued Resolution No. 70-NQ/TW on ensuring national energy security to 2030 with a vision to 2045, calling for accelerating the implementation of the Ninh Thuan 1 and Ninh Thuan 2 nuclear power projects with suitable partners.

The plants are expected to begin operations during the 2030–2035 period.

VnEconomy-Huyền Vy

Hai Phong must become modern industrial, seaport hub: Party chief

Mon, 16 Mar 2026 11:00:00 GMT

During a working session with the Hai Phong Party Committee on March 16, Party General Secretary To Lam urged the northern city to sustain high, long-term growth closely tied to modernisation, green transition, digitalisation, and better life quality.

The port city of Hai Phong must become a leading growth pole in northern Vietnam, serving as a hub for hi-tech industry, world-class logistics, and modern maritime economy, while also acting as a key gateway linking domestic and foreign markets, the Vietnam News Agency quoted Party General Secretary To Lam as saying during a working session with the municipal Party Committee on March 16.

General Secretary Lam urged the northern city to sustain high, long-term growth closely tied to modernisation, green transition, digitalisation, and better life quality. The city should further expand its dynamic business community and maintain its top national rankings in investment environment, administrative reform, and digital transformation.

Hai Phong should build an advanced industrial ecosystem by carefully selecting capable investors, cutting-edge technologies, and strategic supply chains, he said, adding that the city must also develop a modern maritime, port, and logistics system of global and national stature. This entails forming an international logistics centre linked with a modern seaport network, multimodal transport, e-commerce, green and smart ports. The goal is to transform Hai Phong into a coordinating hub for trade flows, logistics, and high-value services across northern Vietnam.

He suggested the city urgently and effectively follow the Politburo’s Resolution No. 57-NQ/TW on breakthroughs in science and technology development, innovation, and national digital transformation, while making full use of special policy mechanisms to develop an innovation ecosystem. This involves building startup support centres, gradually establishing a sci-tech park, and completing a smart operation centre.

The city should promote digital ports, logistics, and services to boost the digital economy's share, strengthen modern governance capacity and create new appeal for investors and innovative enterprises. It should encourage entrepreneurship, innovation, and technology firms, gradually forming a business community capable of competing regionally and deeply embedding in global value chains.

It was asked to drastically follow special mechanisms and policies for efficient resource allocation. Priority should be given to development investment while gradually reducing recurrent spending. At the same time, the city should make effective use of public assets, resolve prolonged projects, curb wastefulness and losses, and finalise mechanisms for infrastructure utilisation within the Free Trade Zone (FTZ).

Hai Phong must aggressively reform urban governance toward a digital, service-oriented, and enabling model. The two-tier local administration system needs to operate in an integrated and effective manner with clear authority and accountability. The goal is not only to retain its leadership in administrative reform but to advance toward a modern, transparent, data-driven urban governance model. The city should elevate workforce quality, expand social housing, improve urban environment, and raise public welfare standards.

By 2030, Hai Phong must shape a modern marine economic spatial structure, with seaports and logistics at its core. The Lach Huyen and Nam Do Son port systems, alongside logistics networks, industrial parks, and the FTZ, should be planned in an integrated manner to form a cohesive value chain spanning production, transportation, trade, and services. The target is to make Hai Phong the logistics and supply chain coordination hub for northern Vietnam and the wider region.

At the same time, the city must expand and modernise regional connectivity to become a multimodal transportation hub for the north.

Looking to 2045, the Party chief stressed that Hai Phong should become a modern industrial-service port city of Asian stature and a national hub for marine economy, logistics, clean energy, and marine science and technology. Urban space should follow a multi-centre model extending seaward, with modern port cities, coastal ecological urban areas, and smart cities connected to innovation hubs. The city should also establish eco-industrial parks, hi-tech zones, and research centres focused on marine technology, materials, and new energy. Hai Phong must become a green, smart, and livable coastal city that attracts knowledge, technology, and quality workforce.

Further ahead to 2100, urban planning should target a globally competitive marine megacity serving as a hub for trade, logistics, and maritime economy in East Asia.

Hai Phong should proactively drive regional cooperation in infrastructure, logistics, tourism, workforce training, and marine environmental protection to expand economic space and boost overall regional competitiveness, he said.

Particular focus should be placed on the workforce, especially workers in industrial zones and ports, migrant labour, and vulnerable groups. Industrial growth must align with parallel development of social infrastructure for workers.

On workforce training, modern vocational training systems should meet the needs of industries, logistics, maritime economy, and hi-tech sectors to raise the rate of qualified workers in coming years.

The city should roll out effective sustainable poverty reduction schemes, create livelihoods and job opportunities, support vulnerable groups, and expand social protection coverage. At the same time, it must develop a modern, transparent, and flexible labour market.

In parallel, Hai Phong should place strong emphasis on building a green, safe, and sustainable living environment through tighter resource management, pollution control, waste classification and treatment, green urban development, and climate change adaptation to protect its residents’ long-term health and future, he added.

VNA-Van Nguyen

HCMC prepares growth scenarios amid economic and geopolitical volatility

Sun, 15 Mar 2026 01:16:00 GMT

During the first and second quarters of 2026, the city can capitalize on lower tariffs from the United States to bolster manufacturing and export activities, further driving economic expansion.

The Ho Chi Minh City Institute for Development Studies (HIDS) has developed three economic growth scenarios for the southern city for the second quarter of 2026, aiming for an annual growth target of approximately 10%, despite ongoing geopolitical tensions and global energy price fluctuations.

Speaking at a workshop on March 13 titled "Solutions to drive double-digit growth from traditional and new drivers amidst energy stability in Ho Chi Minh City," Deputy Director of HIDS, Mr. Pham Binh An, stated that the city is well-positioned to maintain its growth momentum. This outlook is supported by positive economic performance in the first two months of 2026 and the city government's decisive leadership.

Notably, during the first and second quarters of 2026, the city can capitalize on lower tariffs from the United States to bolster manufacturing and export activities, further driving economic expansion.

However, Mr. An emphasized that alongside these favorable factors, the city must proactively prepare for adverse impacts stemming from oil price volatility and global geopolitical developments. To this end, HIDS has proposed three specific scenarios based on the geopolitical climate:

The baseline scenario (assumes prolonged and escalating conflict): Forecasts Q1 2026 GRDP growth between 7.08% and 7.98% (point forecast of 7.53%). To meet annual targets, Q2 growth would need to reach between 12.62% and 13.52% (point forecast of 13.07%).

The transition scenario (assumes short-term conflict): Forecasts Q1 2026 GRDP growth between 8.08% and 9.04% (point forecast of 8.56%). Q2 growth would need to reach between 11.59% and 12.49% (point forecast of 12.04%).

The target scenario (assumes a rapid cooling of tensions): Forecasts Q1 2026 GRDP growth between 9.19% and 10.28% (point forecast of 9.74%). Q2 growth would need to reach between 10.41% and 11.31% (point forecast of 10.86%).

To support the city’s economic growth targets, Mr. An proposed six key groups of solutions:

First, accelerate public investment disbursement starting in the first quarter. Efforts should focus on transport infrastructure, logistics, and key national and local projects. Simultaneously, the city needs to resolve bottlenecks in procedures, land acquisition, and site clearance.

Second, boost industrial production and exports. The city should support businesses in ramping up production during Q1 to capitalize on the temporary 15% U.S. tariff rate (before potential changes occur after 150 days). Additionally, HCMC must diversify its export markets—targeting the EU, Japan, and South Korea through agreements such as the CPTPP, EVFTA, and RCEP—while maintaining its stronghold in the US market.

Third, stimulate domestic demand and service sector development. This can be achieved through stimulus programs, large-scale shopping events, and festivals.

Fourth, attract high-quality Foreign Direct Investment (FDI) and private investment. Focus should be placed on attracting projects in high-tech, artificial intelligence (AI), and the digital economy from the US, South Korea, and Japan.

Fifth, promote the digital economy and innovation. This involves accelerating the application of Big Data, AI, and digital transformation across production, services, and state management.

Sixth, maintain economic stability and manage risks. This includes implementing measures to control the price index, stabilizing fuel supplies, and increasing strategic reserves.

Vneconomy-Thanh Thủy

Roadmap for Vietnm’s carbon exchange

Sat, 14 Mar 2026 01:40:00 GMT

A newly-issued Decree on a domestic carbon exchange will bring the contents of a Prime Ministerial Decision on the carbon market to life, organizing, operating, and managing carbon trading activities in Vietnam.

The government issued Decree No. 29/2026/ND-CP on January 19 on the domestic carbon exchange, in the context of the Prime Minister approving the Scheme on the “Establishment and Development of the Carbon Market in Vietnam” under Decision No. 232/QD-TTg issued in January 2025.

The Scheme clearly defines the viewpoints, objectives, roadmap, and tasks and solutions for forming and developing Vietnam’s carbon market. It aims to promote low-emission technologies, contribute to building a low-carbon economy, and achieve the target of net-zero emissions by 2050.

Legal foundation

The Decree stipulates that greenhouse gas emission allowances and carbon credits traded on the carbon trading system are those permitted to be exchanged on the carbon exchange in accordance with Decree No. 06/2022/ND-CP dated January 7, 2022, on greenhouse gas emission reduction and ozone layer protection, as amended and supplemented by Decree No. 119/2025/ND-CP.

Entities eligible to participate in trading on the domestic carbon exchange are those authorized to exchange greenhouse gas emission allowances and carbon credits in accordance with Decree No. 06, as amended and supplemented by Decree No. 119.

According to the Prime Minister’s Decision, Vietnam’s carbon market is to be developed under a centralized model, operating on market principles under State management and supervision, ensuring openness, transparency, safety, and alignment with national conditions and international practices.

The Decision specifies that during the pilot operation of the domestic carbon exchange through December 31, 2028, the Vietnam Securities Depository and Clearing Corporation, the Vietnam Exchange, and the Hanoi Stock Exchange will not charge fees for services provided on the domestic carbon exchange.

From January 1, 2029, the Vietnam Securities Depository and Clearing Corporation, the Vietnam Exchange, and the Hanoi Stock Exchange will collect service fees for activities on the domestic carbon exchange in accordance with regulations.

Experts view the issuance of the Decree on the domestic carbon exchange as a concrete step to operationalize the contents set out in the Prime Minister’s Decision, providing a legal basis for organizing, operating, and managing carbon trading activities in Vietnam according to the approved roadmap.

Mr. Truong Tu Long, Expert on Policy and Law at GREEN IN Vietnam, told Vietnam Economic Times / VnEconomy that the new Decree provides specific regulations for market trading activities and serves as a crucial “missing piece” and foundation for operating and developing Vietnam’s carbon market under Decision No. 232.

Along with the Decree, additional policies, such as allowance allocations and regulations on international carbon credit exchanges, are expected to be issued in the time to come, contributing to a more complete legal and policy framework for operating a carbon market in Vietnam and connecting the domestic market with regional and international markets.

Mr. Tran Ky Anh, a carbon credit expert, emphasized that the launch of the domestic carbon exchange is a significant step in Vietnam’s journey towards its net-zero goals. Decree No. 29 will supplement and refine existing regulations under the Law on Environmental Protection 2020 and Decree No. 06, as amended and supplemented by Decree No. 119.

Mobilizing resources

Experts have said the carbon market will help generate green financial resources, promote green enterprises, and realize Vietnam’s net-zero emissions by 2050 commitment, helping it achieve its Nationally Determined Contribution (NDC). The operation of the carbon exchange will play a pivotal role in the green transition, the development of a low-carbon economy, and climate change response.

“The carbon exchange provides a centralized, transparent platform under State management,” Mr. Anh noted. “It helps price carbon more accurately, reflecting emission costs and the value of emission reduction activities. These price signals directly influence corporate investment decisions, channeling capital into clean technologies, renewable energy, energy efficiency, and cost-effective emission reduction solutions.”

Moreover, it serves as a channel to mobilize social resources for the green transition, easing pressure on the State budget, helping Vietnam gradually connect with international carbon markets, and attracting foreign capital into projects that reduce and absorb greenhouse gases.

He added that enterprises participating in the market must cap total greenhouse gas emissions in line with allocated allowances. For companies that have proactively invested in emission reductions, this presents an opportunity to recover investment capital and generate additional revenue by selling unused allowances or carbon credits.

“Participation in the carbon market also helps enterprises strengthen ESG [environmental, social, and governance] practices, improve brand image, and enhance access to green finance,” he continued. “Conversely, companies that lag in the green transition will face higher costs, affecting their competitiveness.”

Mr. Long believes the carbon market should also be viewed as a financial market that mobilizes capital for the economy, specifically financing the implementation of green and emission reduction projects.

To realize its net-zero by 2050 target, Vietnam is currently promoting a wide range of emission reduction projects across industrial production, agriculture, and forestry. Green development and emission reduction projects are expected to benefit significantly from the establishment of a domestic carbon exchange.

According to Mr. Long, the exchange will serve as a venue to trade and sell outputs in the form of carbon credits generated by facilities and enterprises, providing additional financial resources to offset initial investments and potentially generate profits. Enterprises with large emission volumes, under a flexible mechanism, may choose to purchase carbon credits on the compliance market instead of buying emission allowances. Overall, the emergence of the carbon market is expected to deliver benefits to both the supply and demand sides.

As greenhouse gas reduction requirements become increasingly stringent, particularly for high-emission sectors, the gradual formation and operation of the domestic carbon market carries strategic significance not only for compliance but also for enhancing enterprises’ long-term competitiveness.

The carbon market offers a flexible mechanism that allows enterprises to meet emission reduction obligations along a more suitable roadmap, while encouraging cost-effective investment decisions. More importantly, it helps businesses become familiar with carbon pricing mechanisms, emissions transparency, and carbon risk management - standards that are increasingly becoming the norm in international markets.

If effectively designed and implemented, the carbon market could not only reduce compliance costs for enterprises but also unlock financial resources for the green transition. Estimates suggest that operating the domestic carbon market could help enterprises cut compliance costs by $400 million to $800 million, freeing up investment for greenhouse gas reduction technologies. If Vietnam participates in international carbon markets, it could potentially attract between $500 million and $2 billion in investment from international climate finance and green transition funding sources.

Considerations and recommendations

To seize opportunities and ensure the effective operation of the carbon exchange, experts stress the importance of comprehensive and accurate emissions data inventories. Enterprises should prioritize building robust Measurement, Reporting, and Verification (MRV) systems. According to Mr. Anh, only with reliable data can companies develop proactive and effective market participation strategies.

Enterprises are also advised to approach the carbon market with a long-term mindset, aligning participation strategies with broader green transition goals, technological innovation, and energy efficiency improvements, rather than treating participation as a short-term compliance exercise.

Though the carbon exchange is expected to officially begin operations by the end of 2026, companies should start preparing early. “The carbon market is a new and complex game,” Mr. Ky Anh emphasized. “Early movers with solid preparation will have a clear advantage.”

From a market trend perspective, Mr. Long noted that in 2025 the international carbon market experienced a major shift in demand. Instead of focusing on volume as in the past, the market is now prioritizing high-quality removal credits, generated from nature-based solutions such as afforestation, sustainable forest management, agroforestry models, or direct carbon capture and storage projects. In contrast, reduction and avoidance projects are no longer prioritized.

Accordingly, experts recommend that instead of focusing solely on renewable energy projects as before, investors and enterprises should turn towards greenhouse gas removal and nature-based projects. Carbon credits from these projects are expected to be more sought after and command higher prices in the coming period.

This view was also highlighted by Dr. Beria Leimona, Theme Leader for Climate Change, Energy and Low-carbon Development at scientific researchers CIFOR-ICRAF, who pointed out that the potential and growth trajectory of carbon credit projects are substantial, with a strong correlation between high credit quality and pricing. Nature-based removal credits currently command the highest prices, while forest and ocean carbon credits and blue carbon are also highly valued, with blue carbon prices rising sharply in recent times.

Decree No. 29/2026/ND-CP on the domestic carbon exchange consists of six chapters and 35 articles, governing activities such as registration, issuance of domestic codes, transfer of ownership, custody, and the trading and settlement of transactions involving greenhouse gas emission allowances and eligible carbon credits traded in accordance with the law; the responsibilities of agencies and organizations in managing the domestic carbon exchange; and requirements in reporting and information disclosure.

Mr. Todd Berkinshaw, CEO of NatureCO, said significant financial resources from global investment funds and corporations are seeking to invest in nature-based carbon projects, particularly those with low risk, high integrity, and strong value creation.

Experts believe the carbon market is not merely about “selling CO₂” but rather a mechanism to transform the challenge of climate change into opportunities for green economic development. Every ton of CO₂ cut represents economic value, and takes Vietnam a step closer to its net-zero emissions by 2050 goal.

VET-Do Phong

Master plan for Hai Phong to 2050 approved

Sat, 14 Mar 2026 01:00:00 GMT

The plan aiming to develop the northern port city into a modern, smart coastal metropolis with international competitiveness and sustainable growth.

Prime Minister Pham Minh Chinh has approved a master plan for Hai Phong through 2050, with a vision to 2075, aiming to develop the northern port city into a modern, smart coastal metropolis with international competitiveness and sustainable growth.

The city is also envisioned as a model of sustainable urban governance with a distinctive identity, closely linked to resource protection and climate change adaptation.

The plan will study Hai Phong’s development in close connection with provinces and cities in the Northern key economic region, the Red River Delta, and the Hanoi Capital Region, clarifying its role as a regional growth pole, a marine economic centre and an international trade gateway.

It will also examine spatial development orientations for key areas of the city, focusing on the reconstruction and renovation of old urban zones and the historical center.

In addition, the planning process will focus on developing a network of industrial parks, clusters and logistics services following a modern, specialized and integrated approach linked with transport infrastructure and multimodal transport hubs. The aim is to ensure efficient land use, environmental control and alignment with the marine economic development strategy.

VnEconomy-Hoàng Bách

Social Responsibility and Cybersecurity seen as "passport" for export enterprises

Fri, 13 Mar 2026 07:30:00 GMT

Compliance with social responsibility and cybersecurity has become a fundamental requirement for Vietnamese enterprises.

At the Risk, Compliance, and Innovation Supply Chain Conference, held in Hanoi on March 10 by the National Innovation Center, in coordination with the Supplier Compliance Audit Network (SCAN), discussions were focused on social responsibility and cybersecurity of export enterprises.

In the ever-evolving landscape of global trade, compliance with social responsibility and cybersecurity has transitioned from being optional to a fundamental requirement for Vietnamese enterprises aiming to maintain their foothold in key markets such as the United States and the European Union.

According to experts from the Supplier Compliance Audit Network (SCAN), these elements are now essential for businesses to thrive in these demanding markets.

Social responsibility compliance - a key to tightly regulated markets

By 2025, Vietnam's import-export landscape has reached record figures, with a total turnover of $930.05 billion, of which exports account for $475.04 billion. The United States remains Vietnam's largest export market, with a turnover of $153.2 billion. However, to sustain this export flow, businesses face unprecedented pressure from new legal regulations. The shift in purchasing mindset among major importers is becoming increasingly evident, especially amid geopolitical uncertainties and tightened technical barriers.

Mr. Do Tien Thinh, Deputy Director of the National Innovation Center (NIC), emphasizes that goods aiming for key markets must not only be of high quality but also "ethical and transparent." This means that products must meet high standards of human rights, free from forced labor and child labor, and ensure occupational safety and hygiene conditions.

The shift from voluntary to mandatory social responsibility compliance in many countries means that businesses unable to demonstrate transparency in their supply chains risk having their goods detained at customs, resulting in significant financial and reputational damage. Participation in networks like SCAN helps Vietnamese enterprises build trust with buyers, enhance competitiveness, and secure long-term cooperation opportunities.

SCAN, a global non-profit organization with 63 members and an annual revenue totaling $2 trillion, includes giants like Walmart, The Home Depot, and Amazon. It has been implementing the Social Compliance Assessment Program to support manufacturing plants. This program not only alleviates "audit fatigue" by sharing assessment data among members but also helps businesses save significant costs. In 2025, SCAN's program saved members over $15.6 million in assessment costs and reduced hundreds of tons of CO2 emissions by optimizing inspection processes.

Ensuring data security

However, for the social compliance assessment and inspection process to be swiftly implemented, data sharing among members must be secure to ensure the stable operation of the supply chain. In the digital era, cyberattacks targeting logistics infrastructure and trade data are increasing in sophistication. In 2025 alone, there were at least 32 large-scale global cyberattacks in the maritime sector, disrupting operations at major ports from Italy to Nigeria.

According to Mr. Carlos E. Ochoa, CEO of SCAN, trust is the "passport" in global trade. To build this trust, data must be securely shared among stakeholders. SCAN's cybersecurity program focuses on protecting computers, networks, and data from unauthorized access or destruction through a range of physical, technical, and organizational safeguards.

Current cybersecurity standards require businesses to have clear written policies, conduct regular inventory and destruction of sensitive data storage devices weekly, use virtual private networks (VPNs) for remote employees, and especially back up data weekly in encrypted form. The use of unlicensed software is also a serious risk closely monitored by SCAN and U.S. importers.

A breakthrough in ensuring the immutability of assessment records is SCAN's application of blockchain technology. Mr. Dan Purtell, Director of Innovation and Technology at SCAN, highlighted that blockchain enhances trust and data transparency by providing a decentralized ledger, effectively preventing the sharing of fraudulent audit reports. All factory assessment results are recorded on blockchain platforms like Ethereum, allowing importers and regulatory agencies to verify data authenticity almost instantly. This is particularly important as the U.S. Customs and Border Protection (CBP) has signed an MOU with SCAN, allowing CBP access to SCAN's assessment data repository for risk assessment in the CTPAT (Customs-Trade Partnership Against Terrorism) program.

Implementation challenges for Vietnamese enterprises

Currently, the number of Vietnamese enterprises participating in SCAN's network is limited, but this number is on the rise (SCAN's assessments in Vietnam increased to 15% in 2025, up from 10% in 2024). In the context of new regulations from key export markets soon to be applied, customs experts recommend that Vietnamese businesses proactively take three steps to avoid being left behind.

Ms. Nguyen Khanh Hong, Expert of the Authorized Economic Operator (AEO) Program of the World Customs Organization (WCO), suggests:

Firstly, comprehensive digital transformation is necessary not only to optimize productivity but also to build a digital "production log" system (blockchain) to prove the origin of labor and materials immutably.

Secondly, serious investment in internal control systems is needed, aligning with the recommendations of the WCO's SAFE Framework of Standards and Vietnam's amended Customs Law No. 90/2025/QH15.

Thirdly, participating in international compliance networks like SCAN to reduce assessment costs and gain recognition from business partners and international customs authorities.

"In the new era of trade, compliance and transparency are no longer cost burdens but the greatest assets for businesses to confidently and sustainably enter the global market," said Ms. Nguyen Khanh Hong.

vneconomy-Anh Nhi

Technology exhibition series to attract over 450 enterprises from 32 nations and territories

Fri, 13 Mar 2026 07:16:00 GMT

ProPak Vietnam 2026, the 19th international exhibition on processing and packaging technology, will focus on showcasing solutions in packaging, food processing, pharmaceuticals, logistics, and the cold chain industry.

Under the patronage of the Ho Chi Minh City Department of Industry and Trade, Informa Markets Vietnam will organize the international exhibition ProPak Vietnam 2026, held concurrently with DrinkTech Vietnam 2026 and Plastics Rubber Vietnam 2026.

The events will take place at the Saigon Exhibition and Convention Center (SECC) from March 31 to April 2.

The combined event is expected to attract over 450 exhibitors from 32 countries and territories, covering a total exhibition area of approximately 13,000 sq.m.

ProPak Vietnam 2026, the 19th international exhibition on processing and packaging technology, will focus on showcasing solutions in packaging, food processing, pharmaceuticals, logistics, and the cold chain industry.

DrinkTech Vietnam 2026, the 3rd international beverage technology exhibition, will bring together a comprehensive ecosystem of technology, equipment, and solutions for the beverage industry—ranging from production and filling to packaging and labeling. The event will feature participation from numerous domestic and regional food and beverage enterprises.

Plastics Rubber Vietnam 2026, the 13th international exhibition on technology, raw materials, and machinery for the plastics and rubber industries, will highlight production and processing solutions, including equipment and materials from leading domestic and international suppliers.

During the three-day event, ProPak Vietnam 2026 will showcase the latest advancements in packaging, food processing, beverage technology, raw materials, pharmaceuticals, and logistics. This provides a platform for businesses to stay updated on market trends, expand partnerships, and seek optimal solutions to enhance production efficiency.

According to the organizers, the processing and packaging market in 2026 is projected to undergo a period of intense "market re-screening." Businesses will not only face pressure regarding production output but will also need to tackle the challenges of rising input costs and increasingly stringent requirements for operational data.

Vneconomy-Song Hà

Economic opportunity for Vietnam’s plastics innovation ecosystem

Fri, 13 Mar 2026 04:09:00 GMT

Vietnam’s plastics innovation ecosystem has changed dramatically in nature and scope over the last few years.

For much of the past decade, plastics pollution in Vietnam has been treated as an environmental externality - visible, costly, but largely disconnected from mainstream economic planning. That framing began to change decisively after 2020. Over the five-year period to 2025, plastic waste moved from the margins of policy discussion to the center of Vietnam’s green growth and innovation agenda, reshaping how businesses, investors, and regulators engage with the plastics economy.

According to the recently-released “Vietnam Plastic Innovation Shift 2020 - 2025” report from the United Nations Development Programme (UNDP), Vietnam’s plastics innovation ecosystem underwent a structural transformation during this period, shifting from fragmented, largely voluntary initiatives to a policy-driven, investment-backed system aligned with circular economy principles. This evolution has implications far beyond waste management. It touches on industrial competitiveness, capital allocation, startup development, and the country’s ambition to position itself as a regional hub for circular innovation.

From fragmentation to framework

The most important catalyst behind Vietnam’s plastics innovation shift was regulatory clarity. Prior to 2020, the policy environment relied heavily on guidance and incentives, with limited enforcement mechanisms. Innovation existed, but it lacked scale and predictability. That changed with the passage of the Law on Environmental Protection, which formally embedded circular economy principles into national legislation and established the legal basis for Extended Producer Responsibility (EPR).

This legal shift altered risk perceptions across the market. For manufacturers and brand owners, plastic waste management became a quantifiable compliance obligation rather than a discretionary sustainability effort. For investors, it created a clearer demand signal for recycling infrastructure, alternative materials, and supporting services.

The UNDP report shows that nearly 90 per cent of total funding for plastics-related innovation between 2020 and 2025 was deployed during the 2022-2023 period alone, following the issuance of detailed EPR implementation guidelines. Capital flowed into new programs supporting recycling capacity, alternative materials manufacturing, and technology-enabled waste management systems. Public funding, international development finance, and private capital increasingly converged around similar priorities, reinforcing the sense that plastics innovation had become a legitimate investment theme.

This surge in funding coincided with measurable operational changes. Participation in product take-back schemes expanded, while the national plastics recycling rate increased compared with pre-2020 levels. Though still modest relative to total waste generation, these gains signaled that policy-backed investment could begin to move the needle at scale.

However, the distribution of capital also revealed structural imbalances. Large, capital-intensive projects, particularly those aligned with multinational supply chains or export markets, were better positioned to attract funding. Smaller enterprises and early-stage innovators often struggled to access the same financial pipelines, despite playing a critical role in experimentation and local adaptation.

Innovation without scale

Small and medium-sized enterprises (SMEs) sit at the heart of Vietnam’s plastics innovation story. The UNDP analysis identifies 99 SMEs that had reached the ready-to-scale or early commercialization stage by 2025, operating across the full plastics value chain. These enterprises range from upstream material innovators such as An Phat Bioplastics, which produces industrial-scale biodegradable packaging under its AnEco brand, to smaller startups like ECOSOI, which converts pineapple leaf fiber into bio-based materials for fashion and packaging applications.

Other enterprises focus on leveraging Vietnam’s agricultural by-products to create new material streams. Companies including Buyo and AirXCoffee transform organic waste such as coffee grounds into bioplastics, composites, and consumer products, aligning circular innovation with Vietnam’s strengths in agriculture and food processing. These upstream and midstream enterprises reflect a broader trend towards redesigning plastics use at source, rather than relying solely on end-of-life solutions.

Downstream, a growing group of SMEs is investing in recycling, upcycling, and value added recovery. Companies such as Duy Tan Recycling and VietCycle have introduced advanced mechanical recycling processes to improve the quality and consistency of recycled plastic pellets, while others, including UpGreen Vietnam, focus on transforming low-value plastic waste into furniture, construction materials, and design products. In parallel, digital platforms like mGreen and VECA aim to improve collection efficiency and traceability through technology-enabled incentive systems.

Notably, many of these enterprises were founded after 2018, reflecting the rapid growth of sustainability-driven entrepreneurship following Vietnam’s policy shift toward the circular economy and EPR. Yet scale remains elusive. Roughly 80 per cent of plastics innovation enterprises remain at an early or nascent stage of development, even after entering the market. This is not due to a lack of ideas or technical capability, but rather to a combination of financial, infrastructural, and market barriers.

One of the most persistent challenges is the “valley of death” between pilot testing and commercial expansion. Many innovations emerge from competitions, university programs, or donor-funded challenges, which typically provide short-term grants lasting six to 18 months. These resources are sufficient for proof-of-concept testing, but rarely adequate for building production capacity, securing certifications, or developing distribution channels. Once initial funding ends, enterprises often face a sharp drop-off in support.

Upstream innovators producing biodegradable plastics or plant-based alternatives face production costs significantly higher than conventional plastics, while policy incentives to close this gap remain limited. Midstream enterprises offering refill or reuse models encounter slower-than-expected consumer uptake, particularly in the post-pandemic period when convenience and price sensitivity increased. Downstream recyclers, meanwhile, struggle with unstable feedstock supply due to weak collection and sorting systems, leading to underutilized capacity and volatile margins.

The report estimates that Vietnam loses a large share of high-quality recyclable plastics each year because of inadequate sorting and recovery systems. For SMEs, this translates into higher input costs, inconsistent material quality, and limited ability to meet the standards required by large buyers.

As a result, many enterprises turn outwards. Enterprises with international certifications and competitive products often prioritize export markets, where demand for recycled or bio-based materials is stronger and price premiums are more predictable. While this strategy supports firm-level growth, it also highlights a gap in domestic market readiness and the need for coordinated demand creation at home.

Investment gaps

The contrast between rising capital flows and persistent SME bottlenecks points to a structural financing gap. On one end, large-scale projects aligned with EPR compliance and multinational supply chains attract substantial funding. On the other, early-stage innovators benefit from grants and competitions. What remains underdeveloped is the patient and risk-tolerant capital that supports enterprises through the transition from pilot to scale.

The UNDP report notes that while Vietnam has a growing number of startup support organizations, only a small fraction focus on social impact businesses or plastics innovation specifically.

This gap has broader economic implications. Plastics innovation depends on system-wide coordination: collection infrastructure, standardized inputs, predictable offtake, and regulatory enforcement. Without targeted investment in these shared assets, individual enterprises, particularly SMEs, bear disproportionate risk. Addressing this imbalance will require not only more capital, but better-designed financial instruments, including blended finance facilities and replication funds tailored to circular economy models.

Multinational corporations have emerged as important system builders within Vietnam’s plastics innovation ecosystem. Rather than focusing solely on product-level changes, many are engaging in broader collaborations that link design, collection, recycling, and reuse.

This approach reflects a shift from isolated corporate social responsibility initiatives towards strategic engagement with circular economy infrastructure. By committing to recycled content targets, redesigning packaging for recyclability, and supporting collection systems, large firms help create the market conditions that smaller innovators need to scale.

The experience of the past five years suggests that plastics innovation in Vietnam is less about any single technology or startup than about how the system functions as a whole. Regulation has set the framework, capital has accelerated activity, and collaboration has helped reduce fragmentation across the value chain. Where these forces align, environmental pressures have begun to translate into economic activity, investment opportunities, and new forms of industrial organization.

VET-Diep Linh

Ho Chi Minh City Prioritizes High-Quality FDI projects

Tue, 10 Mar 2026 23:06:00 GMT

As of the end of 2025, Ho Chi Minh City remained the leading locality in Vietnam for FDI attraction, with a cumulative total of approximately $142.2 billion, corresponding to over 20,470 active projects.

In the early months of 2026, Ho Chi Minh City continues to witness positive signals in attracting foreign direct investment (FDI), with a clear shift towards sectors with high added value.

As of the end of 2025, Ho Chi Minh City remained the leading locality in Vietnam for FDI attraction, with a cumulative capital of approximately $142.2 billion, registered and disbursed for over 20,470 active projects. Following the administrative boundary merger, the city attracted more than $8.37 billion in registered FDI capital in 2025, the highest in the country.

According to statistics from the National Statistics Office (the Ministry of Finance), in the first two months of 2026, Ho Chi Minh City attracted approximately $900.2 million in registered FDI capital, ranking second nationwide.

For 2026, the city aims to attract around $11 billion in FDI capital, prioritizing projects in high-tech, logistics, and financial-commercial centers. Along with the increase in scale, the demand for improving the quality of FDI inflows is becoming more pronounced. Previously, investment attraction mainly aimed at expanding capacity, leveraging cost advantages, and tax incentives. Now, criteria such as added value, technology transfer, and the ability to link with domestic enterprises are more emphasized.

The investment structure at the end of 2025 and the beginning of 2026 also shows this shift, with the emergence of large-scale technology and financial projects, reflecting a trend of capital pouring into high-value-added sectors instead of labor-intensive industries.

One notable project is the agreement between G42 Group (UAE) and a consortium of domestic investors to develop data center infrastructure with a total estimated value of about $2 billion, indicating that FDI is strongly directed towards digital infrastructure.

Additionally, the financial infrastructure sector is also attracting international investors' attention. As soon as Vietnam's International Financial Center in Ho Chi Minh City (VIFC-HCMC) was launched on February 11, 2026, Vantage Point Asset Management (VPAM) committed to raising up to $10 billion over five years to invest in data infrastructure and the fintech sector. Simultaneously, the establishment of a $1 billion Digital Asset Investment Fund was also announced.

Despite the positive figures, economic experts believe that the 2026 context still poses significant challenges to the investment environment and growth quality. From a medium and long-term perspective, Mr. Ngo Thanh Huan, Chairman and CEO of FIDT Corporation, suggested that FDI, domestic consumption, and public investment will form three pillars of Vietnam's growth, but the role of each pillar is changing significantly.

Firstly, FDI remains a structural driver, measured not only by registered capital size but also by the quality of the value chain. New capital flows focus more on technology, mid-to-high-end production, and supporting infrastructure. This helps stabilize exports and production capacity, but the spillover effect will be slow and heavily dependent on the absorption capacity of domestic enterprises. The capital and labor-intensive model, which has been a growth engine for the past 20 years, needs time to gradually transition to technology and knowledge-intensive.

Secondly, domestic consumption acts as the "shock absorber" of the cycle. As the global economy diverges, domestic demand helps maintain growth momentum but will increase selectively and cautiously, reflecting real income and savings psychology after years of volatility. This is not a booming driver but a stable foundation and also the "room" for accumulation that the economy will need if the global macro context is more negative than expected.

Thirdly, public investment plays a role in activation and guidance. In the context of limited monetary policy space, public investment, if effectively disbursed, will be an important pull for short-term growth, while laying the foundation for long-term productivity through infrastructure, logistics, and energy.

"Overall, growth in the coming period will not come from a single pillar but from a harmonious coordination: FDI creates production capacity, consumption maintains the economic rhythm, and public investment paves the way for the next growth cycle," Mr. Huan noted.

Selective FDI attraction is necessary but also occurs in an increasingly fierce competitive context. Investors are concerned about policy stability, legal transparency, human resource quality, and the capacity of the domestic business ecosystem. This requires localities and management agencies to continue improving the investment environment in a predictable, synchronized, and more effective manner.

A report from the Foreign Investment Agency, the Ministry of Finance, indicated that from the beginning of the year, the total registered FDI in Vietnam reached $6.03 billion. Implemented capital reached $3.21 billion, up 8.8% compared to the same period last year and the highest for the first two months in the past five years.

Among 34 provinces and cities, Thai Nguyen leads the country in terms of FDI attraction in the two-month period, with nearly $1.7 billion, a sharp increase of 1,354% compared to the same period last year. Ho Chi Minh City follows with about $900.2 million, Bac Ninh $818.5 million and Hanoi $624.52 million.

Ho Chi Minh City's Department of Finance stated that for the period 2026 - 2030, the city aims to attract FDI in depth, towards high added value and sustainable development. The focus is on attracting investment in high-tech fields such as semiconductors, digital technology like AI, IoT, big data, blockchain, new materials industries, and biotechnology.

To address bottlenecks and improve the investment environment, the city is implementing a comprehensive set of solutions such as infrastructure investment (roads, railways, seaports), completing mechanisms, and policies to attract FDI by reforming the incentive framework towards more international competitiveness, linking incentives with project efficiency.

At the same time, promoting administrative procedure reform towards digitalization, implementing a one-stop-shop mechanism, and increasing dialogue with businesses.

vneconomy -Thanh Thuy

Vietnam ranks among global top 10 for LEED-certified green building projects

Tue, 10 Mar 2026 00:00:00 GMT

The ranking is based on the total LEED-certified floor area each year, reflecting the scale and level of development of green building markets in each country.

Vietnam, for the first time, has entered the top 10 countries and territories outside the US for LEED-certified projects in 2025, ranking 8th globally, announced the US Green Building Council (USGBC) and the Green Business Certification Inc. (GBCI).

Data from USGBC shows that Vietnam recorded 2.6 million square meters of LEED-certified floor area across 100 projects in 2025. Two years earlier, Vietnam ranked 28th on the list.

The ranking is based on the total LEED-certified floor area each year, reflecting the scale and level of development of green building markets in each country.

Vietnam's presence in the global top 10 showed that more developers are prioritizing green buildings, while also demonstrating increasing alignment between real estate investment strategies and environmental standards, according to USGBC.

The result underscores the accelerating shift toward green buildings in Vietnam’s property market as investors increasingly integrate sustainability considerations into development plans.

VnEconomy-Thanh Xuân

Ha Tinh approves $500mln EV manufacturing plant

Wed, 04 Mar 2026 07:20:00 GMT

The plant, invested in by Vinfast, has a designed capacity of up to two million vehicles per year.

The Economic Zones Management Board of central Ha Tinh province on February 28 approved an electric vehicle (EV) manufacturing project in the Vung Ang Economic Zone, with a total registered investment of more than VND13.25 trillion (around $506 million).

Covering 64 hectares, the plant will be developed by VinFast and will specialise in the production of electric scooters and electric bicycles, with a designed capacity of up to two million vehicles per year.

The project also includes the construction of workshops and auxiliary facilities to support EV manufacturing.

The development will be implemented in two phases. The first phase, slated for completion in 2026, will have an annual capacity of one million vehicles. The second phase, expected to begin in late 2026, will double total output to two million units per year.

VinFast plans to complete investment procedures and commence construction in the first quarter of 2026, with mass production targeted for the second quarter of the same year.

VnEconomy-Nguyễn Thuấn

Green transition in the fertilizer industry

Wed, 04 Mar 2026 02:30:00 GMT

Vietnam’s fertilizer industry is accelerating its green transition, balancing environmental demands with productivity, competitiveness, and long-term sustainability.

According to data from the Department of Crop Production and Plant Protection at the Ministry of Agriculture and Environment (MAE), Vietnam had nearly 800 fertilizer production facilities nationwide as of the end of June 2025, with a combined annual capacity of more than 20 million tons. Of these, 261 facilities produce inorganic fertilizers, 161 produce organic fertilizers, and 308 produce both inorganic and organic products. The total organic fertilizer output capacity is estimated at around 4.7 million tons annually.

Green transformation in the fertilizer industry is not only about meeting increasingly stringent environmental standards but also a fundamental solution to improving efficiency in agricultural production and enhancing the competitiveness of Vietnam’s agricultural products.

Inevitable equation

Domestic facilities are now able to produce most key fertilizer types, including phosphate fertilizer, urea, and NPK, fully meeting domestic demand. DAP plants cover around 60 per cent of demand, while potassium and SA fertilizers remain entirely dependent on imports. For organic fertilizers, domestic producers are able to meet both local demand and export requirements, without reliance on imported raw materials.

Many enterprises have actively invested in research and successfully applied science and technology to develop organic and bio-fertilizers for production. Notably, a number of products have demonstrated the ability to cut greenhouse gas emissions by 10-20 per cent, or even more.

According to Mr. Nguyen Tri Ngoc, Standing Vice Chairman of the Fertilizer Association of Vietnam, fertilizers are an indispensable input for agricultural production, contributing roughly 40-60 per cent of crop productivity. This critical role also makes the fertilizer sector a sensitive “link” in terms of environmental impact and the agricultural ecosystem. Improper fertilizer use, whether excessive or insufficient, can lead to soil degradation, water pollution, greenhouse gas emissions, and direct impacts on human health.

Against this backdrop, greening the fertilizer industry has become an inexorable trend amid growing demand for emission reductions, energy efficiency, and the application of clean technologies. Mr. Ngoc noted that this process goes beyond cutting emissions or meeting environmental standards; it is closely tied to improving agricultural efficiency, ensuring food security, and enhancing the value of Vietnam’s agricultural products. Expanding the use of organic and bio-fertilizers, applying clean technologies, and using resources more efficiently are seen as key pillars of this transition.

Conversely, the green transition also presents clear opportunities for businesses to strengthen competitiveness, access sustainable agriculture markets, and meet the increasingly strict requirements of international partners.

“We already have initiatives related to greening agriculture and using fertilizers to drive that process,” he said. “One example is the 1-million-ha high-quality rice project, aimed at reducing greenhouse gas emissions. This is a positive model for agricultural greening, with fertilizers playing a direct role in that transformation.” He stressed that greening the fertilizer industry is an inexorable trend, and to integrate and participate in green agriculture the fertilizer industry must move one step ahead to catalyze broader agricultural greening.

Some enterprises have already taken the lead, proactively upgrading technology and conducting in-house research to develop green products for production. Mr. Phan Van Tam, Deputy General Director of Binh Dien Fertilizer, said greening has been identified as a core development strategy, implemented across the entire value chain from production to fertilizer use. The company has focused on adopting environmentally-friendly technologies to reduce greenhouse gas emissions while improving input efficiency in cultivation.

The company has participated in several programs led by the MAE in recent years, most notably the Soil Health Program and the project on sustainable development of 1 million ha of high-quality, low-emission rice linked to green growth in the Mekong Delta to 2030. Through its involvement, Binh Dien has found that sensible fertilizer use, in line with proper technical processes, can significantly reduce emissions, not only during fertilizer production but also in on-field application.

Clear roadmap and coordinated policies

However, the path towards greening the fertilizer industry remains beset by barriers. Mr. Ngoc pointed out that current efforts face major challenges, particularly high investment costs and a lack of coordinated legal frameworks. Not all enterprises have sufficient resources to invest in new technologies in a short period, especially small and medium-sized enterprises with limited financial capacity. Access to “green credit” remains difficult due to complex lending procedures and the absence of a clear legal framework.

From a practical perspective, Mr. Hoang Quang Phong, Vice Chairman of the Vietnam Chamber of Commerce and Industry (VCCI), noted that the greening of the fertilizer industry is constrained by multiple issues, including the lack of a concrete legal framework for green production, non-uniform technological processes, high transition costs, fragmented standards systems, uneven awareness about green production, and the persistence of counterfeit and imitation products that undermine market trust.

To promote an effective green transition, Mr. Ngoc emphasized the State’s role in refining policies, establishing appropriate incentive mechanisms, and strengthening dialogue and cooperation between regulators, associations, and businesses. Investment in RD, along with workforce training, is also considered crucial for enabling enterprises to master technology and implement greening in a sustainable manner.

He called for revisions and improvements to laws such as the Law on Standards and Technical Regulations, the Law on Product and Goods Quality, and the Law on Crop Production, to better align with integration realities. He also advocated for a shift in quality management from pre-inspection to post-inspection to reduce unnecessary barriers for businesses. Technological innovation, he added, must be accompanied by systematic human resource training to ensure both quality and greening objectives are met.

From the perspective of manufacturers, Mr. Phung Ngoc Bo, Head of the Technical Committee at the Vietnam National Chemical Group (Vinachem), emphasized that green transformation is not only a response to climate change but also a key driver of production efficiency, value creation, and competitiveness for chemical products amid deeper integration. Nevertheless, the sector continues to face major hurdles, including large capital requirements, outdated technologies that are difficult to integrate with new solutions, and pricing pressure as green products often carry higher costs.

As a result, tailored support mechanisms and policies are needed for foundational industries such as fertilizers and chemicals during the green transition. These include building a stable and transparent legal framework for circular and low-carbon production; providing financial support and green credit to facilitate access to preferential domestic and international funding; and supporting technological innovation, research, technology transfer, localization, and mastery of clean, low-carbon technologies for waste recovery, recycling, and treatment suited to Vietnam’s production conditions. Policies should also encourage domestic and foreign investors to participate in capital contributions and partnerships for green fertilizer production projects, circular plants, and high-tech industrial parks.

According to Mr. Ha Van Thang, Chairman of the Vietnam Council of Agricultural Enterprises (VCAC), organic bio-fertilizers are not merely agricultural products but integrated solutions encompassing technology, management, and environmental protection. The development and effective use of organic bio-fertilizers can help reduce greenhouse gas emissions, protect soil resources, enhance the value of agricultural products, and advance towards green, circular, low-emission agriculture. He therefore called for stronger research efforts, technology transfer, and the completion of policy mechanisms to support the fertilizer sector’s transition towards green and sustainable development.

PM calls for accelerated production, distribution and use of biofuels

Mon, 02 Mar 2026 03:30:00 GMT

The move is seen as a strategic step toward gradually replacing fossil fuels, strengthening energy security, and delivering on Vietnam’s commitment to achieve net-zero emissions by 2050.

Prime Minister Pham Minh Chinh has called for accelerating production, distribution and use of biofuels in a Directive issued on February 26.

The move is seen as a strategic step toward gradually replacing fossil fuels, strengthening energy security, and delivering on Vietnam’s commitment to achieve net-zero emissions by 2050.

The Government leader requested heads of relevant ministries, agencies and local authorities to promptly integrate targets for promoting biofuel consumption into upcoming sectoral strategies, master plans, projects and legal documents.

They were also tasked with reviewing and assessing the potential and effectiveness of emerging sectors related to biofuel development, production and consumption, while accelerating the rollout of programs, projects and pilot models linked to biofuels—particularly in transport, industry and agriculture.

The Prime Minister assigned the Ministry of Industry and Trade to take the lead, in coordination with other ministries and localities, in formulating a detailed roadmap for biofuel blending ratios with conventional fuels. The ministry is responsible for ensuring a stable supply of bio-petrol to meet domestic demand, encouraging enterprises to invest in infrastructure for biofuel production and distribution, and strengthening inspection and supervision in line with regulations.

It was also directed to promote domestic biofuel production to gradually secure self-reliance in the supply of E100.

In addition, the ministry must closely monitor domestic and international markets, analyse and forecast biofuel supply and demand trends to ensure stable provision and timely responses to consumption needs. Contingency plans are to be developed to address potential market fluctuations and minimise risks for consumers and businesses.

VnEconomy-Vũ Khuê

$100 million electric motorcycle factory officially operational in Bac Ninh

Mon, 02 Mar 2026 00:00:00 GMT

The northern province prioritizes attracting high-tech and environmentally friendly projects that offer high added value, strong spillover effects, and the potential to establish new manufacturing ecosystems.

Yadea Vietnam Science and Technology Co., Ltd., a subsidiary of the China-based YADEA Group, officially inaugurated its smart electric motorcycle manufacturing plant at Tan Hung Industrial Park in northern Vietnam's Bac Ninh Province on March 1.

The facility represents a phase 1 investment of over $100 million, with an initial production capacity of more than 1 million electric motorcycles per year, which is slated to scale up to approximately 2 million units annually.

Speaking at the event, Standing Vice Chairman of the Provincial People’s Committee, Mr. Mai Son, said that once the project is fully operational, it will not only contribute significantly to the provincial budget but also drive the formation of an electric vehicle (EV) industrial cluster and supporting industries, such as batteries, motors, and electronic components.

According to Mr. Son, Bac Ninh has identified modern, green, and sustainable industrial development as a core pillar of its long-term growth strategy. The province prioritizes attracting high-tech and environmentally friendly projects that offer high added value, strong spillover effects, and the potential to establish new manufacturing ecosystems.

Furthermore, Mr. Son expressed his hope that YADEA would continue to view Bac Ninh as a strategic hub within its global value chain. He encouraged the company to ramp up investment in research and development (RD), strengthen partnerships with domestic enterprises, gradually increase the localization rate, and build a comprehensive EV manufacturing ecosystem with international competitiveness.

Vneconomy-Nam Anh

All gasoline and diesel taxis in Hanoi to be replaced by electric ones by 2030

Sat, 28 Feb 2026 08:15:00 GMT

To achieve this goal, the capital city is developing mechanisms and policies to encourage and support taxi companies in proactively converting their fleets.

Under the Hanoi People's Committee's recently-issued plan, all gasoline and diesel taxis operating in the capital city will be transitioned to electric and green energy vehicles by 2030 at the latest.

To achieve this goal, the city is developing mechanisms and policies to encourage and support taxi companies in proactively converting their fleets.

Specifically, the Hanoi People's Committee will draft and present a resolution to the City Council, outlining policies to support the transition to clean energy road vehicles and measures to limit the use of polluting vehicles. The city will subsidize part of the interest on commercial bank loans for contracts aimed at converting traditional taxis to electric and green energy vehicles. Additionally, it will facilitate access to preferential capital from the city's Development Investment Fund.

Taxi businesses will receive support in the form of reduced registration fees and initial license plate issuance for electric and green energy taxis. The city will also consider offering preferential parking rates for electric and green energy taxis at public parking lots and incentives for investors in public charging infrastructure. Authorities are urged to extend the 100% exemption on registration fees for electric and green energy vehicles, with a particular focus on taxis used for passenger transport.

The transition timeline for converting gasoline and diesel taxis to electric and green energy vehicles sets targets of 64% by 2026, 68-70% by 2027, 74-77% by 2028, 88-96% by 2029, and 100% by 2030. Post-2030, the city will focus on maintaining stable conditions for electric and green energy taxis, prioritizing improved access to charging infrastructure, parking, and suitable traffic organization.

Currently, Hanoi has over 14,300 active taxis, with nearly 8,800 being electric. Additionally, around 13,600 taxis are inactive and awaiting replacement. The total number of vehicles expected to transition by 2030 is nearly 28,000. The city has tasked the Hanoi Department of Construction with leading, coordinating, monitoring, and evaluating the implementation of the plan. This department is responsible for expediting the review and installation of charging stations and arranging stops and parking for electric taxis.

In terms of management, the Hanoi Police is tasked with reviewing procedures related to the registration and issuance of identification license plates for vehicle conversion, providing unified guidance to shorten processing times and ensure no disruption to transport businesses. Concurrently, relevant authorities will research and implement an intelligent traffic monitoring system, utilizing automatic license plate recognition technology to manage vehicles and control violations in low-emission zones.

Vneconomy-Song Hoang

Hue prioritizes green growth and high-tech investment in 2030 vision

Sat, 28 Feb 2026 00:30:00 GMT

Projects that yield positive environmental impacts, contribute to greenhouse gas emission reductions, and demonstrate resource efficiency are highly encouraged by the central city.

Under its development strategy through 2030, Hue City in central Vietnam has established a rigorous selection process for investment projects, focusing on key criteria such as technology, environmental impact, and socio-economic efficiency.

Moving away from chasing quantity, the central city is now prioritizing quality, favoring projects that utilize modern, clean technologies, conserve resources and energy, and generate high added value within production and business chains.

Projects that yield positive environmental impacts, contribute to greenhouse gas emission reductions, and demonstrate resource efficiency are highly encouraged by the central city. Priority sectors include renewable energy, green urban development, waste management, and coastal eco-tourism integrated with landscape conservation. Conversely, any projects posing potential risks of environmental pollution will be rejected.

In addition to developing green industries and services, Hue aims to establish green value chains through recycling, material reuse, and waste management under a circular economy model. Beyond economic returns, projects must guarantee sustainable employment, improve worker incomes, and make meaningful contributions to the local community.

In the agricultural sector, Hue is pivoting toward organic, circular, and high-tech models to adapt to climate change and meet evolving consumer demands. Various support policies have been enacted to attract investment into high-tech and organic farming, as well as digital transformation in production.

Specifically, high-tech crop cultivation and aquaculture facilities are eligible for support of up to VND500 million (over $19,000). Large-scale livestock farms or breeding facilities can receive incentives ranging from VND500 million to VND1.5 billion (over $57,000).

Substantial support is also provided for organic livestock models and high-tech, environment-friendly poultry slaughtering facilities. Projects implementing circular technology or digital transformation may qualify for even higher levels of assistance. Furthermore, the city encourages linkages between production and consumption—particularly in organic and VietGAP sectors—to build sustainable "farm-to-market" value chains.

Currently, Hue City is home to approximately 6,700 active enterprises, over 97% of which are small and medium-sized enterprises (SMEs). This corporate sector contributes nearly 40% of the local budget revenue and provides jobs for approximately 120,000 workers.

Vneconomy-Nguyễn Thuấn

Serial codes for emission quotas and carbon credits to be issued

Fri, 27 Feb 2026 07:16:00 GMT

The Ministry of Agriculture and Environment is the sole authority empowered to issue and manage domestic codes and serial numbers for greenhouse gas emission quotas and carbon credits on the National Registry.

Under its recently-issued circular, the Ministry of Agriculture and Environment (MAE) has regulated the management and operation of the National Registry System for greenhouse gas (GHG) emission quotas and carbon credits.

The National Registry System is designed to enhance management and facilitate organizations and agencies participating in GHG emission reduction activities, as well as the trading and offsetting of carbon credits.

The system will serve as a centralized database to record and store critical information, including: lists of owners, quantities, domestic identification codes, serial numbers, current status, and a full history of all activities performed within the registry.

The registry will be integrated and exchange data with carbon trading platforms, as well as custody and payment systems. All operational requests from registered accounts must be authenticated via the National Public Service Portal. Once verified, these transactions carry a legal validity equivalent to documents signed by the account holder’s legal representative.

Under the new regulations, each agency or organization is entitled to only one registered account on the National Registry System, even if they oversee multiple facilities listed for GHG emission quota allocation. Organizations will use this single account to manage, track, and fulfill compliance obligations for each of their respective facilities.

The account identification code will be linked directly to the entity’s tax identification number. To ensure smooth coordination and operation, account holders are responsible for registering and maintaining at least two contact persons to act as liaisons with the Ministry through the system.

Facilities are permitted to conduct transactions such as transfers, borrowing, and using carbon credits to offset GHG emissions in accordance with the law. The Circular also provides clear guidelines for the de-registration and handling of carbon credits or emission quotas that are revoked or failed to meet compliance obligations.

The MAE is the sole authority empowered to issue and manage domestic codes and serial numbers for GHG emission quotas and carbon credits on the National Registry.

Domestic codes are used to uniquely identify quotas or credits within Vietnamese territory. These are stored as electronic data and will not be re-issued once canceled. Specifically, GHG emission quota codes will consist of 6 characters, while carbon credit codes will consist of 9 characters.

Vneconomy-Tùng Dương

New automobile emission standards to take effect on March 1

Wed, 25 Feb 2026 23:30:00 GMT

Under these regulations, all automobiles must meet the minimum emission level corresponding to their year of manufacture at the time of inspection.

The Prime Minister’s Decision No. 43/2025/QD-TTg, which outlines the implementation roadmap for national technical standards on emissions for automobiles operating in road traffic, is set to take effect on March 1, 2026.

The Decision defines five distinct emission levels (Levels 1 through 5). Under these regulations, all automobiles must meet the minimum emission level corresponding to their year of manufacture at the time of inspection.

From March 1, 2026, automobiles manufactured before 1999 must comply with Level 1; automobiles manufactured from 1999 to the end of 2016 must comply with Level 2; and automobiles manufactured from 2017 to the end of 2021 must comply with Level 3.

For automobiles manufactured from 2017 to the end of 2021 operating in Hanoi and Ho Chi Minh City, Level 4 applies from January 1, 2027.

Automobiles manufactured from 2022 must comply with Level 4 from the effective date of this Decision, and Level 5 from January 1, 2032.

For automobiles manufactured from 2022 operating in Hanoi and HCM City, Level 5 applies earlier, from January 1, 2028.

From January 1, 2029, automobiles participating in traffic in Hanoi and HCM City must meet emission standards of at least Level 2.

To avoid vehicles failing inspection, which would cause unnecessary time and costs, vehicle owners and drivers are advised to proactively maintain and repair their vehicles before inspection to ensure emission test results meet the required standards.

Vneconomy-Hằng Anh