The potential for bilateral cooperation in the energy sector between Vietnam and the UK is still huge and this sector is also a key pillar of cooperation between the two countries in the journey towards a carbon-neutral future, according to Mr. Ta Hoang Linh, Director of the European-American Market Department, Ministry of Industry and Trade.
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Renewable energy projects installed in Ninh Thuan province. Photo: Huy Hung/VNA[/caption]Energy cooperation opportunities between the two countries will be unlocked through the Just Energy Transition Partnership (JETP) 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 Agreement for 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, Linh said.
Promoting international cooperation is important for Vietnam to achieve its ambitious goals, he said, adding that the Ministry of Industry and Trade hopes to continue receiving cooperation from the UK to move towards the goal of net zero emissions.
He emphasized that the Vietnamese Government is committed to creating a favorable and transparent investment environment for investors, including British investors, to 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 80% of the country's emissions, is under significant pressure to transition to achieve zero emissions, said Tang The Hung, Deputy Director of the Department of Energy Efficiency and Sustainable Development, Ministry of Industry and Trade.
Therefore, energy conversion has become an inevitable requirement for Vietnam to meet the increasing electricity demand for socio-economic development, ensure energy security and reduce emissions.
Mr. Hung said that in the journey to 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, British Embassy in Vietnam, because JETP is something “we all have to do together”, the UK, as co-chair of IPG, has worked very actively with the Vietnamese Government to move towards a partnership.
Vietnam is drafting a JETP Resource Mobilization Plan (RMP), which is considered crucial as it will transform the political declaration into a more practical process. The plan will set out the criteria that will be used to tap the $15.5 billion in financing under the JETP.
Mr George said the finance would be poured into the grid to address transmission and renewable energy integration issues as well as significant investments in renewable energy.
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Staff check the connection from the renewable energy center to the transmission grid at the 500kV Vinh Tan transformer station. Photo: Huy Hung/VNA[/caption]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 the Power Development Plan VIII. It is all about implementation after that, he said.
“The UK is committed to continuing to work with JETP to do whatever we can to support the various ministries involved in its implementation,” Mr George said, adding that the UK is prepared to work more directly with the Ministry of Industry and Trade on JETP issues.
Meanwhile, Mr. Denzel Eades, Vice Chairman of the British Chamber of Commerce in Vietnam, affirmed that it is important to facilitate investment in energy transition and renewable energy to achieve zero-emission ambitions.
He points out that investors and funders like predictable investments, as this ensures that they can make long-term investments.
Mr. Eades said Vietnam's policies have been very good at encouraging confidence in the market because policies, planning and legal frameworks are predictable.
Especially with Power Plan VIII, it creates a solid foundation for investment in the energy sector, the Vietnamese energy market is increasingly receiving attention.
According to Power Plan VIII, the proportion of renewable energy will increase from 30% in 2030 to 65% in 2054.
“The energy transition is real. JETP is critical to Vietnam’s energy transition as it will help mobilize both public and private finance to facilitate international investment in Vietnam’s energy sector,” Mr. Eades stressed.
Investors are looking forward to identifying specific projects under Power Master Plan VIII for investment opportunities, as well as further insight into how JETP can act as a catalyst to support private sector investment in the energy sector.
CPTPP and UKVFTA are also useful tools because energy is not only about technology and projects but also about services. “The opportunity to provide UK expertise through finance, engineering and consulting is really huge in Vietnam’s energy transition,” Mr. Eades added./.
Mai Linh
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