SIGNIFICANT INVESTMENT SHOULD BE POURED INTO GREEN ENERGY TRANSITION

Hanoi, December 17, 2025 – “Viet Nam has some of the strongest renewable energy fundamentals in the world. GIZ support its partners to capitalize on that.” This was one of the key messages emphasized by Mr. David Ambadar, Director of GIZ’s ‘Shifting Investment Flows Towards Green Transformation’ (SHIFT) project at the Viet Nam Economic and Financial Forum 2025 held in Hanoi on December 5. In his presentation, he shared an in-depth analysis of the country’s policy directions, financing needs, current green investment landscape and national potentials, enriched with international insights and practical recommendations.

He noted global experience shows that energy transition is the most critical pathway for green transformation and green growth. The financing needs are significant – ranging from 6.7% to nearly 10% of GDP for countries committed to net zero. Most of this investment typically goes into renewable energy generation and electric vehicles, with a 60% share of the total coming from the private sector, predominantly financed through corporate bonds.

“In Viet Nam, beyond power generation, the nation needs to prioritize smart grid development and energy storage systems. Equally important is ensuring long-term price certainty for investors and project developers,’ he highlighted.

David also shared that Germany is dedicated to its bilateral cooperation with Viet Nam, providing new, significant ODA commitments, with a large share dedicated to supporting green energy transition and private sector development.

He added that the newly approved SHIFT project will focus on key drivers of the green transformation in Viet Nam, including green bonds and green credit, carbon market development, energy finance modelling and private-sector investment in clean energy technologies. Led by the Ministry of Finance, the project is expected to contribute significantly to boost investment in the country’s green transition.

An article about his presentation is also available on Viet Nam Finance Times: Vietnam steps up green transformation with strong policies and rising investment demand | Thời báo Tài chính Việt Nam