The European Union will invest €560 million ($649 million) in sustainable transport and clean energy, in order to support economic growth, job creation, and pollution reduction.
The package was announced at the EU-Vietnam Global Gateway Business and Investment Forum in Hanoi on Tuesday. The investment aligns with the EU’s Global Gateway strategy and follows the recent upgrade of EU–Vietnam relations to a Comprehensive Strategic Partnership.
EIB Global, the development arm of the European Investment Bank (EIB), and Vietnam Technological and Commercial Joint Stock Bank (Techcombank) signed a €200 million financing agreement. With this funding, Techcombank, a leading bank in Vietnam, will expand lending for projects in areas including renewable energy, energy efficiency and sustainable transport. The operation will contribute to several Sustainable Development Goals and support Vietnam’s Just Energy Transition Partnership (JETP) towards a green, carbon-neutral economy by 2050.
In the energy sector, European development banks signed €230 million in loan agreements with national power company Electricity Vietnam (EVN) for the Bac Ai project. The project is Vietnam’s first pumped storage hydropower plant. This financing forms part of a broader package of nearly €400 million under a coordinated “Team Europe” approach, involving institutions such as the European Investment Bank, Agence Française de Développement, PROPARCO, Cassa Depositi e Prestiti, and KfW.
Other financing deals include a €23 million top-up for the Energy Transition Facility, a €20 million sustainable forest management program, and a €50 million initiative with Germany and France to develop vocational training and green skills.
Regarding transport, a €40 million Sustainable Transport Facility will support Vietnam’s public transport expansion, including major infrastructure projects such as railways, inland waterways, and urban mobility. The initiative is expected to mobilize over €1 billion in concessional loans from European development banks.
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