In Hanoi, Vietnam and Australia signed an agreement to implement an energy cooperation project that will support Vietnam’s transition to clean and sustainable energy, strengthen energy security and help the country reach its net-zero emissions target by 2050.
The Ministry of Industry and Trade of Vietnam and the Australian Embassy in Vietnam jointly held the signing ceremony for a supplementary agreement between the two governments on the Vietnam-Australia partnership for economic growth in energy, or Aus4Growth.
The agreement is intended to turn the two countries’ commitments to energy cooperation and the green transition into practical projects. It builds on the Comprehensive Strategic Partnership between Vietnam and Australia established in March 2024.
The Australian government, through its Department of Foreign Affairs and Trade, will provide up to 18.3 million AUD (12.73 million USD) in non-refundable official development assistance grants. The project will run from 2026 to 2031.
The project aims to accelerate Vietnam’s transition to a clean, sustainable and market-based energy sector, strengthen energy security and reliable electricity supplies at reasonable costs, and help achieve net-zero emissions by 2050.
The work will focus on three areas: developing a sustainable, 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.
Deputy Minister of Industry and Trade Truong Thanh Hoai thanked the Australian government for supporting Vietnam’s energy sector. He said the project would provide not only financial resources but also opportunities to exchange knowledge, international experience and advanced technical solutions needed to develop a competitive electricity market, modernise the power system and advance a sustainable energy transition.
Renee Deschamps, Chargé d’Affaires a.i. at the Australian Embassy in Vietnam, said the signing and launch of the project marked an important stage in bilateral energy cooperation. She said the priorities of the two countries’ Comprehensive Strategic Partnership were being turned into practical activities and tangible results.
She confirmed that Australia would continue supporting Vietnam’s energy transition through assistance with electricity market development, renewable energy, power grids and power system modernisation, as well as capacity building.
Deschamps said these efforts would help build a safer, more reliable, sustainable and resilient energy system while supporting Vietnam’s goal of inclusive and sustainable economic development.
The Ministry of Industry and Trade assigned its Electricity Regulatory Authority to lead the project and coordinate its management arrangements with Australia’s Department of Foreign Affairs and Trade, the Australian Embassy and other partners. The parties will jointly develop technical assistance activities based on the power sector’s priorities and practical needs.
Sources: VietnamPlus / Vietnam News Agency
