The announcement was made at the Global Gateway Forum in Belgium from October 9 to 10, where EU Commissioner Síkela met with Vietnamese Deputy Prime Minister Bui Thanh Son.

The Just Energy Transition Partnership, co-led by the EU and the United Kingdom, aims to accelerate the shift towards a greener, more resilient energy future in Vietnam. The Bac Ai Pumped Hydro Storage Project will provide essential flexibility and stability to Vietnam's power system, facilitate the large-scale integration of renewable energy, and contribute to the country's decarbonisation goals.

Commissioner Síkela said, “The Bac Ai project is a cornerstone of our joint efforts to build a cleaner, more reliable energy system that supports sustainable growth and attracts private investment. This shows Europe's determination to deliver on Vietnam's Just Energy Transition Partnership. Through Global Gateway, we are turning commitments into concrete results for people, the planet, and our shared prosperity.”

The Bac Ai Pumped Hydro Storage Project is one of the largest energy transition investments under Vietnam's JETP, designed to enhance grid stability and enable higher shares of renewable generation. The project exemplifies the Global Gateway approach, mobilising public and private finance, applying high standards, and building long-term partnerships to drive sustainable infrastructure investment.

Team Europe brings together the EU and their development financial institutions to deliver impactful, coordinated investments under the Global Gateway strategy. For this project, Team Europe includes the European Union, AFD (Agence Française de Développement), EIB (European Investment Bank), KfW (the German development bank), CDP (Cassa Depositi e Prestiti, Italy's national promotional institution), and PROPARCO, the private sector arm of AFD that focuses on financing sustainable private investment in developing and emerging markets.

Through the Global Gateway, the EU and Vietnam are working together to promote sustainable, green infrastructure, and accelerate the green transition, in particular with the JETP. The two sides are building skills and fostering growth, while protecting the environment. The EU's financial commitment for 2021-2027 was at least €293 million ($341 million) and the EU, EIB, and member states contributed over €2.8 billion ($3.3 billion) to the JETP. Additional support at regional level, focus on the green transition and sustainable connectivity, in particular support to electricity connectivity with the ASEAN Power Grid.

The Global Gateway Forum brings together leaders from the EU and across the globe, alongside the private sector, civil society, thought leaders, financial institutions, and international organisations to promote sustainable investment worldwide.

Global Gateway is the EU's positive offer to boost smart, clean and secure connections in the digital, energy, and transport sectors, and to strengthen health, education, and research systems. Through a Team Europe approach, it aims to mobilise up to €300 billion ($349 billion) in investments by 2027, closing the global investment gap and creating lasting links rather than dependencies.