Vietnam and the European Investment Bank (EIB) signed an MoU on October 25 to support the implementation of the Just Energy Transition Partnership (JETP) in Vietnam, signifying a mutual commitment to put in place a multi-project credit facility of €500 million ($528 million), the Government News has reported.

Once the credit facility is finalized and signed shortly, it will establish a framework loan that will finance projects supporting decarbonization and energy transition in Vietnam.

The EU will also make available €16.6 million ($17.5 million) in technical assistance for Agence Française de Développement (AFD) to support Electricity of Vietnam (EVN) in the preparation and implementation of projects linked to the JETP.

The technical assistance facility will accompany a total of €1 billion ($1.055 billion) in sovereign and non-sovereign loans provided by Team Europe (AFD, KfW, and EIB).

On the policy side, the EU is supporting reforms in the energy sector, including establishing legislative and technical conditions on renewable energy, energy efficiency, and transmission lines and grids for the JETP, through the Sustainable Energy Transition Program (SETP), to the tune of €142 million ($149.7 million).

The Government News also quoted the President of the European Commission Ursula von der Leyen addressing the signing ceremony in Brussels. “Today, we are taking an important step to support Vietnam’s ambitious net zero goal for 2050,” she said. “The European Commission, the EIB, and Vietnam are partnering to support the renewable energy transition and energy security. With this €500 million funding, Global Gateway is making a difference for the people of Vietnam.”

Through Global Gateway, the EU is committed to supporting Vietnam in achieving a just energy transition and fulfilling its national and international climate ambitions through meaningful implementation of the JETP.

The Global Gateway Forum brings together for the first time an assembly of government representatives from the EU and across the globe, alongside key stakeholders from the private sector and civil society, thought leaders, financial institutions, and international organizations to promote global investment in transformative infrastructure - hard and soft - to deliver on sustainable development goals (SDGs) and sustainable growth and resilience worldwide.