The European Investment Bank (EIB) seeks to strengthen cooperation with Viet Nam in green finance and support the country’s energy transition.
At a press conference on March 13, following a working visit to Viet Nam, EIB Vice President Nicola Beer announced that the bank will soon expand concessional loans for projects in transportation infrastructure, green energy, decarbonization, and emissions reduction for SMEs.
Through the Green Financial System (GFS), the EIB will assist the State Bank of Viet Nam in managing climate risks, expanding green finance, and developing sustainable financial policies.
“By enhancing green finance, the EIB helps Viet Nam attract investment, create opportunities, and build an economy that benefits both people and businesses,” Ms. Beer stated.
Earlier, the EIB Vice President met with Prime Minister Pham Minh Chinh, Deputy Prime Minister Tran Hong Ha, and leaders from MOIT, the Ministry of Finance, and Viet Nam Electricity (EVN) to discuss concessional credit for green energy projects under the Just Energy Transition Partnership (JETP). This climate finance mechanism enables 10 developed nations to support developing countries in shifting from coal power to cleaner energy sources.
Regarding the U.S. withdrawal from JETP earlier this month, she noted that the U.S.’s role in the program was “quite small” and assured that “many other partners, such as Europe and Japan, are still participating and can compensate for this.”
She highlighted Viet Nam’s rapid economic growth in recent years and acknowledged the country’s ambitious goal of achieving net zero by 2050, which requires significant transformations. “We can contribute expertise and technology to support Viet Nam in this transition,” she said.
Ms. Beer cited Hanoi Metro Line 3 (Nhon – Hanoi Station – Hoang Mai), which the EIB co-financed, as a key project in reducing carbon emissions in the transport sector. “Hanoi has ambitious plans to expand its urban railway system, and we are reviewing proposals for new routes to provide financial support,” she added.
Additionally, Ms. Beer expressed the EIB’s interest in finalising a framework agreement for a $500 million financial support package. This loan was outlined in a MOU between the EIB and the Ministry of Finance in late 2023. She noted that the Viet Namese government would determine priority projects for the funding.
Commenting on Viet Nam’s target of 8% GDP growth in 2025, Ms. Beer described it as “ambitious” but emphasized that the EIB would help the country identify and restructure projects to facilitate loan access. “If priority projects in transportation and renewable energy are implemented, this growth target is achievable,” she concluded.
Source: VnExpress
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