In early January, asset management company Mirova announced its investment in Ecoligo, a Berlin-based solar commercial and industrial player. The funding aims to finance a portfolio of greenfield solar rooftop projects in Vietnam and marks the first investment by the Mirova Gigaton Fund in the country, with a commitment of $10 million in senior debt financing. The loan from Mirova will enable Ecoligo to grow its solar business in Vietnam.

French investment wave follows strategic upgrade, Source: freepik.com

Priyanka Mehrotra, investment director of the Mirova division of Natixis Investment Managers Singapore, said, “We view Ecoligo as a standout impact investment player in emerging markets, thanks to its innovative business model. This seventh investment from the fund aligns with our core strategy, which focuses on providing debt financing to clean energy companies that facilitate the transition to a low-carbon economy and enhance energy access in rapidly growing emerging markets.”

Meanwhile, cold chain logistics experts Seafrigo opened its first office in Vietnam, which aligns with the group’s long-term growth strategy to develop its own operations in key locations around the globe.

Fabian Hautiere, managing director of Seafrigo in Vietnam, said, “This is an exciting time to be setting up the Seafrigo business in Vietnam in its own right. There are many specialist products such as basa fish, shrimp, dragon fruit, and mangoes where we will be using our team’s cold chain logistics expertise to bring these goods to markets around the world.”

In mid-December, French shipping giant CMA CGM revealed that it is building a new electric-battery powered, zero-emission inland electric barge for use in Vietnam. The 100 per cent green electricity barge will be supported by dedicated charging infrastructure supplied by a new solar farm at the Gemalink terminal in Cai Mep, producing 1GWH of green electricity annually.

Statistics from the Ministry of Planning and Investment showed that cumulatively as of December 31, French companies invested in almost 700 projects registered at $3.95 billion. In 2024, total newly registered and newly added capital and stake acquisition and capital contributions from French investors in Vietnam hit $52.53 million, up 40 per cent on-year.

Indeed, Vietnam is expected to welcome a surge of French investments following the upgrade of Vietnam and French relations to a comprehensive strategic partnership last year.

In early October, the French Development Agency (AFD) signed an MoU with the Ministry of Transport to cooperate in railway, sea, and inland waterway transport. The two parties will work closely during the planning phase to support the energy transition, lower emissions, improve resilience and recovery, and adapt to climate change, all while implementing an action plan on the green energy transition of the transportation sector.

The partnership is one of various collaboration areas AFD plans for Vietnam. Country director for Vietnam Hervé Conan said, “As AFD celebrated 30 years alongside Vietnam last year, raising the level of partnership between the two countries is an unprecedented opportunity to strengthen our support.”

Since 1994, the AFD has invested more than €3 billion ($3.3 million), contributing to the reduction of poverty and social inequalities. It has adapted over time to Vietnam’s new challenges and today supports the country’s low-carbon energy transition as part of the Just Energy Transition Partnership, while promoting adaptation of the provinces to the impacts of climate change.

“The new strategic partnership between France and Vietnam will be an opportunity to renew AFD’s commitment alongside the country to mobilise new tools and financing for strategic projects. This should contribute to intensifying exchanges in the fields of France’s expertise to better address the future needs of the country,” Conan said.

The AFD will focus its investments on low-carbon and resilient infrastructure and strengthen its support to the energy and climate finance sectors in Vietnam. The agency will raise its public policy dialogue with Vietnam through technical assistance, research programmes, and peer-to-peer exchanges.

Although it generates around one-quarter of total greenhouse gas emissions, the transport sector is one of the blind spots of Vietnam’s energy transition. Under the renewed partnership between the two countries, this sector is expected to become one of the new flagship sectors between France and Vietnam.