Hanoi (VNA) – Vietnam and Australia have signed an agreement to implement an energy cooperation project to support Vietnam’s clean and sustainable energy transition, strengthen energy security, and advance its net-zero emissions target by 2050.

The Ministry of Industry and Trade (MOIT) and the Australian Embassy in Vietnam jointly held the signing of a supplementary agreement between the two governments on the Vietnam-Australia partnership for economic growth in energy (Aus4Growth).

The agreement is a key move in turning the two countries’ pledges for energy cooperation and green transition into real, actionable projects, building on their Comprehensive Strategic Partnership formed in March 2024.

Funded by the Australian government through its Department of Foreign Affairs and Trade (DFAT), the project is expected to receive up to 18.3 million AUD (12.73 million USD) in non-refundable official development assistance grants and run from 2026 to 2031.

The project aims to support Vietnam in accelerating its transition to a clean, sustainable and market-based energy sector, helping ensure energy security and reliable electricity supplies at reasonable costs, and achieve net-zero emissions by 2050.

The project focuses on three main areas: developing a sustainable and low-carbon energy sector, including a competitive electricity market and renewable energy; modernising power system development, management and operation through advanced technologies and digital transformation; and strengthening the power sector ecosystem, capacity building and information and experience sharing among stakeholders.

Addressing the event, Deputy Minister of Industry and Trade Truong Thanh Hoai acknowledged the Australian government’s support for Vietnam’s energy sector. He stressed that the project will provide not only financial resources but also opportunities to exchange knowledge, international experience and advanced technical solutions to develop a competitive electricity market, modernise the power system and promote a sustainable energy transition in Vietnam.

Renee Deschamps, Chargé d'Affaires a.i. at the Australian Embassy in Vietnam, said the signing and launch of the project marked an important milestone in bilateral energy cooperation, turning priorities under the Comprehensive Strategic Partnership between the two nations into practical activities and tangible results.

She affirmed Australia’s continued support for Vietnam’s energy transition through assistance in electricity market development, renewable energy, power grid and system modernisation, and capacity building.

These efforts will help build a safer, more reliable, sustainable and resilient energy system while supporting Vietnam’s inclusive and sustainable economic development goal, Deschamps added.

The MOIT assigned its Electricity Regulatory Authority to lead the project and coordinate with DFAT, the Australian Embassy and other partners on its management arrangements. The parties will work together to deploy technical assistance activities based on the power sector’s priorities and practical needs./.