European Commissioner for International Partnerships Jozef Síkela announced the package at the EU-Vietnam Global Gateway Business and Investment Forum in Hanoi on March 24. He is accompanied by European companies and development banks, including the Vice-President of the European Investment Bank, Nicola Beer.
Mr. Síkela said: “The €560 million investment package shows how the partnership between the European Union and Vietnam delivers on what matters most: boosting economic growth while reducing pollution. We invest together with Vietnamese companies in sustainable, modern transport and clean energy. This is how Global Gateway turns partnership into practical results: jobs, stronger growth, a cleaner energy system and easier transport connections for the future.”
European Investment Bank Vice-President Nicola Beer, who oversees the Bank’s operations in Vietnam, said: “As the financing arm of the European Union, the EIB is supporting Vietnam’s transition to cleaner energy and better transport, delivering tangible benefits for people. In partnership with the European Commission, including through the Just Energy Transition Partnership, we are turning ambition into action. At the EU–Vietnam Global Gateway Business and Investment Forum, we announced a €200 million agreement with Techcombank to expand access to finance for private businesses, including SMEs, backing investment in renewable energy, energy efficiency and electric mobility. This means more jobs, lower energy bills and cleaner air for people in Vietnam.”
The Commissioner’s visit to Vietnam comes at an important moment, following the recent upgrade of EU–Vietnam relations to a Comprehensive Strategic Partnership. The focus now is to turn this into concrete projects and business opportunities.
Sustainable transport
The €40 million Sustainable Transport Facility launched by the EU will support Vietnam in advancing massive public transport investment plans for the next years. It will provide European expertise, technology and know-how. The aim is to develop at least 4 large-scale public infrastructure projects nationally or in major cities, primarily dedicated to railways, such as the Hanoi–Ho Chi Minh City high-speed rail project, but also on inland waterways and urban mobility. The initiative is expected to leverage more than €1 billion of concessional loans from European development banks and involve European private sector.
The European Union has already collaborated with Vietnam on modern transport, building the extension of Hanoi’s Metro Line 3, to help reduce congestion and improve mobility for citizens. Also, European companies will support the upcoming development of the Lien Chieu container port in Da Nang.
Clean energy
As a leading member of the Just Energy Transition Partnership, the EU supports Vietnam’s Vietnam’s robust low-carbon economic growth.
European development banks signed loan agreements totalling €230 million to support Electricity Vietnam for the Bac Ai project, Vietnam’s first pumped storage hydropower plant. The plant will act like a giant battery for the power grid, storing energy when it’s abundant and releasing it when it’s needed most, delivering clean, reliable electricity to communities.
The signed investment is part of a comprehensive package close to €400 million delivered in a Team Europe approach, bringing together the European Commission, AFD (Agence Française de Développement), PROPARCO, Cassa Depositi e Prestiti (Italy’s national promotional institution), the European Investment Bank, and KfW (the German development bank).
The EU is also working with Vietnam under regional cooperation initiatives such as ASEAN Power Grid to promote energy resilience across Southeast Asia.
Further announcements include:
- A €23 million top-up of the Energy Transition Facility to boost investments in clean energy, sharing European expertise, technology and know-how;
- A €20 million sustainable forest management programme; and
- A €50 million programme with Germany and France to develop Technical and Vocational Education and Training centres of excellence and enhance green and digital skills for Vietnamese people to succeed in today’s jobs.
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