First JETP project on power transmission approved by the international partner for funding in Vietnam

The credit agreement signing ceremony for the Southern Power Transmission Network Enhancement Project between AfD and EVNNPT, witnessed by the President of France and the President of the Socialist Republic of Vietnam. (Photo: VNA).

Mr. Rémy Rioux – CEO of AfD, and Mr. Pham Le Phu – CEO of EVNNPT, signed the agreement on behalf of both parties. This event marks a significant milestone in the strategic partnership between France and Vietnam.

This investment will fund three sub-projects, including the construction of two new 500 kV substations and associated transmission lines located in the rapidly growing southern provinces of Binh Duong and Đong Nai. The project aims to enhance grid stability and operational efficiency, thereby meeting essential infrastructure needs to sustain economic growth and support Vietnam’s energy transition.

The agreement reaffirms France’s commitment under the Just Energy Transition Partnership (JETP). Under this framework, France has pledged to mobilize up to €500 million in concessional loans to support Vietnam’s energy transition during the 2023–2027 period. This is the first JETP-related project approved by an international partner and also the first public financing package among the international community’s financial commitments to support Vietnam’s JETP since 2022.

The project also demonstrates Vietnam’s strong determination to move toward a low-carbon, climate-resilient, and sustainable energy future, in line with the country’s net-zero emissions target.

This funding marks a new milestone in the implementation of the JETP. It stands as a testament to the longstanding cooperation between AfD and EVNNPT in developing a more modern, reliable, and environmentally friendly power infrastructure.

Vietnam is emerging as one of the fastest-growing economies in the world. The rapid expansion of its industrial and commercial sectors is driving a sharp increase in electricity demand, which is projected to double by 2030 compared to 2020. While significant progress has been made in the development of renewable energy, ensuring a stable and flexible power transmission system is essential to support the energy transition and guarantee a reliable electricity supply.

In addition to financial support, AfD is also facilitating technical cooperation between the French Transmission System Operator (RTE) and EVNNPT. This partnership will foster the exchange of expertise between EVNNPT and leading international French experts, with a focus on the following key areas:

Technical standards and equipment specifications, ensuring that Vietnam’s power infrastructure complies with the highest international standards.

Cybersecurity measures, aimed at enhancing the resilience of energy infrastructure in the context of an increasingly digitalized power grid.

Health, Safety, and Environmental (HSE) practices, to support sustainable operations and adherence to international best practices.

AfD is France’s public development finance institution, responsible for implementing the French Government’s policy on development cooperation and sustainable investment. Through financing public projects, supporting non-governmental organizations (NGOs), funding scientific research, and providing training and awareness-raising on sustainable development in France, AfD promotes and supports transformative initiatives aimed at building a more just and sustainable world./.