Energy is a key pillar in Vietnam-UK cooperation.

According to Mr. Ta Hoang Linh, Director of the European-American Market Department, Ministry of Industry and Trade, the potential for bilateral cooperation in the energy sector between Vietnam and the UK is still very large, and this sector is also a key pillar of cooperation between the two countries in their journey towards a carbon-neutral future.

[caption id="attachment_604134" align="aligncenter" width="640"] Renewable energy projects are being installed in Ninh Thuan province. Photo: Huy Hung/TTXVN

Opportunities for energy cooperation between the two countries will be unlocked through the Joint Fair Energy Transition Partnership (JETP) agreement between Vietnam and the International Partnership Group (IPG), which includes the UK, the bilateral trade agreement between the two countries (UKVFTA), and the UK's accession to the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP).

In particular, Vietnam has approved the long-awaited National Power Development Plan VIII (Power Plan VIII), which aims to increase the proportion of renewable energy and open up opportunities for private and foreign investment in the energy sector, Mr. Linh said.

According to him, promoting international cooperation is crucial for Vietnam to achieve its ambitious goals, and he stated that the Ministry of Industry and Trade hopes to continue receiving cooperation from the UK towards the goal of net-zero emissions.

He emphasized that the Vietnamese government is committed to creating a favorable and transparent investment environment so that investors, including British investors, can access resources and investment opportunities to operate effectively and sustainably in Vietnam, contributing to promoting relations between the two countries.

Vietnam's energy sector, which accounts for up to 80% of the country's emissions, is under considerable pressure to transition towards achieving net-zero emissions targets, said Tang The Hung, Deputy Director of the Energy Saving and Sustainable Development Department, Ministry of Industry and Trade.

Therefore, energy transition has become an essential requirement for Vietnam to meet the growing electricity demand for socio-economic development, ensure energy security, and reduce emissions.

Mr. Hung stated that in the journey towards carbon neutrality, besides Vietnam's determination and efforts, the country needs substantial support from the international community, especially from developed economies like the UK.

According to Mark George, Climate Counsellor at the British Embassy in Vietnam, because JETP is something "we all have to act on together," the UK, as co-chair of the IPG, has worked very actively with the Vietnamese Government to move towards a partnership.

Vietnam is drafting a Resource Mobilization Plan (RMP) for the Joint Economic Partnership Agreement (JETP), considered crucial as it will transform political declarations into a more practical process. The plan will outline the criteria that will be used to leverage the $15.5 billion in JETP funding.

Mr. George stated that funding would be injected into the grid to address transmission issues and integrate renewable energy, as well as to make significant investments in renewable energy.

[caption id="attachment_604143" align="aligncenter" width="665"] [Caption: Workers inspect the connection from the renewable energy center to the transmission grid at the Vinh Tan 500kV substation. Photo: Huy Hung/TTXVN]

Vietnam's implementation of the Power Development Plan VIII a few months ago demonstrated the country's ambition to transition to renewable energy. JETP will support the implementation of Power Development Plan VIII. It's all just a matter of implementation afterward, he said.

“The UK is committed to continuing its partnership with JETP to do whatever it can to support the various departments involved in the rollout,” Mr. George said, adding that the UK is ready to work more directly with the Department for Trade and Industry on JETP issues.

Meanwhile, Denzel Eades, Vice President of the British Chamber of Commerce in Vietnam, affirmed that it is crucial to facilitate investment in energy transition and renewable energy to achieve the goal of zero emissions.

He pointed out that investors and funders prefer predictable investments, as this ensures they can make long-term investments.

According to Mr. Eades, Vietnam's policies have been very good at encouraging confidence in the market because the policies, planning, and legal framework are predictable.

Particularly with the Power Development Plan VIII, which provides a solid foundation for investment in the energy sector, the Vietnamese energy market is receiving increasing attention.

According to the Power Development Plan VIII, the proportion of renewable energy will increase from 30% in 2030 to 65% in 2054.

“The energy transition is real. JETP is becoming very important for Vietnam’s energy transition because it will help mobilize both public and private financing to facilitate international investment in Vietnam’s energy sector,” Mr. Eades emphasized.

Investors are eagerly awaiting the identification of specific projects under the Power Development Plan VIII to explore investment opportunities, as well as seeking further insights into how JETP can act as a catalyst to support private sector investment in the energy sector.

The CPTPP and UKVFTA are also useful tools because energy is not only about technology and projects, but also about services. “The opportunities for the UK to provide expertise through finance, engineering, and consulting are truly enormous in Vietnam’s energy transition,” Mr. Eades added.

Mai Linh