Hanoi, January 15, 2025 – Today, the Ministry of Industry and Trade’s Electricity Regulatory Authority of Vietnam (ERAV) and Electricity and Renewable Energy Authority (EREA), together with GIZ, officially signed the Implementation Agreement for the “Promoting the Transition of the Energy Sector in Viet Nam” (TEV) project.
This TEV project, amounting up to EUR 4 million, will be used to improve strategic, legal & regulatory and technological conditions for a climate- and environmental-friendly energy transition in Viet Nam. Specifically, the TEV project will focus on three main areas to support Viet Nam’s energy transition process. First, it will provide long-term strategic support to improve the technical capacities of the Ministry of Industry and Trade in researching solutions for the implementation of the energy transition, contributing to the fulfilment of energy transition and sustainable development of Viet Nam. Additionally, TEV will focus on supporting developing new legal and regulatory frameworks, creating a solid foundation for energy transition activities. Finally, the project will provide new technical knowledge of various energy transition technologies for technical experts and managers from MoIT and electricity entities.
Michaela Baur, Country Director of GIZ Vietnam, said: “I am particularly pleased that TEV builds upon the solid foundation of over 15 years of successful collaboration between MOIT and GIZ. Together, we have implemented impactful projects such as Smart Grids and the recently concluded Commercial and Industrial Rooftop Solar project. Germany remains committed to sharing its expertise and experience to ensure Vietnam achieves a sustainable, affordable, and reliable energy future.”
Funded by the German Federal Ministry for Economic Cooperation and Development (BMZ), the TEV project serves as a cornerstone of Vietnam-German technical cooperation. Additionally, it aligns with the goals of the Just Energy Transition Partnership (JETP) between Viet Nam and the G7+ countries, as outlined in the JETP Resource Mobilization Plan.
Representatives from ERAV and EREA emphasized the importance of the TEV project for Viet Nam, particularly as the country faces challenges related to emission reduction and renewable energy development. Collaboration with GIZ will help both agencies strengthen their capacities and access international expertise in energy transition.
Trinh Quoc Vu, Deputy Director General of the Electricity Regulatory Authority of Vietnam (ERAV), highlighted: “I hope that today’s signing ceremony for the TEV project Implementation Agreement will mark a significant milestone in its deployment, thereby fostering a stronger partnership between the two countries. In the coming period, all parties must make concerted efforts and closely coordinate to implement the planned activities promptly and effectively. To achieve this, we request GIZ to provide maximum support in terms of resources and personnel for ERAV and EREA. I am very pleased and grateful for GIZ’s support thus far and for this project. I believe this support will contribute to a more sustainable energy transition in Viet Nam. Collaboration with GIZ will enable us to enhance our regulatory and management capacities, ensuring that Viet Nam’s energy transition proceeds efficiently and sustainably while contributing to the country’s emission reduction goals.”
Tang The Hung, Deputy Director General of the Electricity and Renewable Energy Authority (EREA), shared: “There is still much work to be done to deliver a just energy transition. In Viet Nam, the demand for energy for economic development is enormous. In the National Energy Development Strategy, our top priority is to ensure energy security, followed by maintaining affordable energy prices. Ensuring energy security for Viet Nam in the coming years is a challenging task. At the same time, we must ensure that the energy transition is just and equitable. I hope that through this project, we will focus on supporting central and local agencies, and particularly businesses, in enhancing capacities, improving the legal framework, and raising awareness about the energy transition. I look forward to closer cooperation and more effective activities in the near future.”
The TEV project will be implemented with activities designed to create a long-term and comprehensive impact on Viet Nam’s energy transition. The project aims not only to promote sustainable development but also to support Viet Nam’s shift toward a green economy, reducing reliance on fossil fuels, and achieving net-zero emissions by 2050. This initiative is part of Viet Nam’s broader efforts to meet its international commitments to combat climate change while enhancing the country’s standing in global energy forums.
With the commitment from the German government and close collaboration between GIZ and the Ministry of Industry and Trade, Viet Nam is expected to accelerate its energy transition, contributing to a low-carbon economy and sustainable development.
About Germany – Viet Nam cooperation in energy sector:
Germany’s energy sector cooperation with Viet Nam began in 2011 with the construction of the Phu Lac wind power park, financed by KfW and supported by GIZ’s technical assistance. Since then, support covers policy advice, capacity building, and technology transfer in areas like regulatory incentives for solar, wind, biomass, smart grids, and newly coal region transitions.
Future cooperation aims to support decoupling economic growth from fossil fuel consumption, thereby supporting Viet Nam on its way to a high-income, competitive nation. In doing so, GIZ provides technical advice which supports the shift to renewables, with solar and wind now cost-competitive with coal, combined with emerging technologies like battery storage and green hydrogen which show promising trends.
We believe that modernizing the electricity grid, promoting smart grid technology, and building essential skills of power market actors are key measures to carry on this shift. Leveraging insights from past international policy developments, GIZ provides technical analysis and support for refining transition strategies and regulations, such as for Viet Nam’s first national hydrogen strategy. Additionally, GIZ enhances the capacities of both the public and private sectors, offering training and fostering market growth through partnerships with enterprises to transfer innovative technologies, further advancing Viet Nam’s energy transition.
