Photo: VNA

The agreement was signed by Rémy Rioux, general director of AFD, and Pham Le Phu, general director of EVNNPT, during the official visit of French President Emmanuel Macron to Vietnam.

The investment will finance three subprojects, including two new 500 kV substations and transmission lines in the southern provinces of Binh Duong and Dong Nai. The initiative aims to enhance grid stability and operational efficiency while meeting the critical infrastructure demand to sustain economic growth and accelerate the energy transition in Vietnam.

This agreement reaffirms France's commitment within the Just Energy Transition Partnership (JETP) framework. Accordingly, France commits to mobilise up to €500 million ($562.5 million) in concessional loans to facilitate Vietnam's energy transition.

JETP is the centrepiece of Vietnam’s commitment to achieve net-zero greenhouse gas emissions by 2050. Agreed between Vietnam and members of the International Partners Group (IPG) in 2022, the JETP aims to support the transition to green energy by providing funding in the form of grants, low-interest loans, and investments from both the public and private sectors.

This is the first time Vietnam has received funding from an international partner within the JETP framework. This also underscores the long-term partnership between AFD and EVNNPT to develop a more modern, reliable, and environmentally friendly power infrastructure.

In addition to financial support, AFD will also facilitate technical cooperation between the French electricity transmission system operator RTE and EVNNPT. This collaboration will foster exchange of expertise between EVNNPT and French experts, ranging from technical standards to cybersecurity measures, as well as health, safety, and environmental practices.