On July 8, the JETP Secreteriat held a meeting with representatives of the International Partners Group (IPG), the Glasgow Financial Alliance for Net Zero (GFANZ), and other related partners to assess progress and strengthen cooperation in implementing Vietnam’s JETP Political Declaration.

The meeting was chaired by Deputy Minister of Industry and Trade Nguyen Hoang Long, on behalf of the Standing Agency of the JETP Secretariat. Members of the JETP Secretariat included representatives from different ministries, the State Bank of Vietnam, Vietnam Electricity (EVN), the Vietnam National Industry-Energy Group, and the Vietnam National Coal and Mineral Industries.

The meeting welcomed IPG co-chairs Thomas Wiersing, chargé d'affaires of the EU, and Marcus Winsley, UK deputy ambassador to Vietnam. Representatives from Japan, Germany, France, Italy, Canada, Denmark, Norway, and Ireland also attended, along with multilateral development banks, GFANZ, and the United Nations Development Programme, which serves as the JETP Secretariat Support Agency.

Participants reviewed the progress made since the Ministry of Industry and Trade (MoIT) took over as the Standing Agency of the JETP Secretariat, including policy reforms to support a just energy transition, key implementation challenges, and ongoing efforts to screen and select proposals in line with the JETP General Principles for resource mobilisation. The meeting also endorsed a transparent project screening and selection process aimed at creating equitable conditions for all stakeholders. In addition, an online submission module was introduced to help expand and streamline the JETP project pipeline.

Speaking on behalf of the IPG, Wiersing and Winsley announced three initiatives that have successfully secured capital mobilisation agreements under the JETP, with IPG support, to advance its implementation.

First is a €67 million ($78.7 million) credit agreement between the National Power Transmission Corporation and the French Development Agency (AFD) to develop a 500kV transmission line running through Ho Chi Minh City (former Binh Duong province) and Dong Nai province.

Second is an agreement on the terms and conditions for a credit facility worth €480 million ($563.5 million) between EVN and six IPG-affiliated development financial institutions: the AFD and its subsidiary Proparco, the European Investment Bank, Germany’s Kreditanstalt für Wiederaufbau , Italy’s Cassa Depositi e Prestiti, and the Japan International Cooperation Agency, to support the 1200 MW Bac Ai Pumped Storage Hydropower Project in Khanh Hoa province (formerly Ninh Thuan province). The undertaking also benefits from €10 million ($11.7 million) of technical assistance, funded by the EU.

Third is a €65 million ($76.3 million) loan agreement signed on June 26 between EVN and the German Development Bank (KfW) for the 200 MW expansion of the Tri An hydropower plant. With a capacity of 200 MW, the initiative aims to ensure a stable and cost-effective electricity supply while being environmentally and socially friendly.

These initial results reflect the growing mobilisation of domestic and international private and public finance to support long-term and large-scale investment for Vietnam’s just energy transition.

The remaining four among the seven initially identified JETP-aligned projects, with IPG support, continue to advance towards financial agreement. In addition, twenty-five new project proposals were recently submitted for support, 17 of which have passed initial screening as aligned with the four JETP General Principles. The ventures represent an investment need of approximately $5.52 billion. With these additions, the JETP-aligned project pipeline has grown to twenty-four projects with total investment needs of $7.04 billion. Partners continue to engage in detail with interested owners and stakeholders to advance financial negotiations.

IPG members, GFANZ, and development finance institutions reaffirmed their commitment and cooperation to supporting Vietnam’s just energy transition, sustainable growth, and greenhouse gas (GHG) emissions mitigation towards the goal of net-zero emissions by 2050, and advancing an inclusive transition that leaves no one behind. IPG will also coordinate with the Standing Agency of the JETP Secretariat, and the JETP Secretariat Support Agency to continue identifying JETP-aligned projects, particularly projects under the revised National Power Development Plan VIII, which was issued by MoIT on May 30.

All parties agreed that the JETP website function that enables secure online proposals is a significant step that supports improved administration and coordination, facilitating networking and cooperation of international partners, financial institutions, investors, and developers.

Deputy Minister Nguyen Hoang Long recognised the collective effort and expressed thanks to all parties for the collaboration in resolving difficulties and promoting the JETP implementation, which has resulted in initial encouraging results. MoIT and line ministries will continue encouraging the improvement of the current policy and regulatory environment, including ODA regulations, to support investor and enterprises involved in just energy transition operations in Vietnam.

The IPG co-chairs reaffirmed the IPG’s commitment to continue working closely with IPG members, GFANZ, and all international partners to accompany the government and support the long-term partnership to facilitate net-zero GHG emissions in Vietnam by 2050.