Log in
Econ

AFD advances Vietnam’s renewable power strategy

This is the latest loan of AFD's more than US$2 billion for sustainable development projects in Vietnam.

The French Development Agency (Agence Française de Développement or AFD) has funded EUR24.2 million (US$26.7 million) for a solar power project in Vietnam as part of efforts to help the country intensify its renewable power strategy.

 Nguyen Xuan Nam, deputy general director of Vietnam Electricity (EVN), and Rémi Genevey, director of AFD’s East Europe, Middle East, and Asia Department, signed agreement for Se San 4 project. Photo: EVN

Signed last month by Rémi Genevey, director of AFD’s East Europe, Middle East, and Asia Department, and Nguyen Xuan Nam, deputy general director of Vietnam Electricity (EVN), the non-guaranteed loan will finance the 49-MW Se San 4 solar farm in the Central Highlands province of Kon Tum.

The loan is in line with AFD’s support to Vietnam in the energy transition switching to low-carbon sources that Vietnam has committed to pursue following the Paris Agreement.

Se San 4 is EVN’s first solar farm which makes full use of infrastructure and network set for Se San 4 Hydropower Plant.

The latest funding indicates the long-term partnership between AFD and EVN which has lasted for more than two decades.

This is AFD’s second non-guaranteed loan in Vietnam and it will not affect the country's public debt. AFD and EVN plan to make other direct loans for hydropower and power transmission projects which are in need of capital amid the decreasing guaranteed loans.

Vietnam has struggled to feed the fast-growing economy, including the annual power growth rate of 10%. The country, therefore needs to raise the power capacity from 60 gigawatts (GW) in 2020 to 129.5 GW by 2030.

For sustainable growth, Vietnam has been switching to renewable energy with significant investment in solar and wind power.

AFD has operated in Vietnam since 1994, funding the country more than EUR2 billion (US$2.2 billion) in 86 sustainable development projects.

Reactions:
Share:
Trending
Most Viewed
Related news

AFD supports Vietnam in climate change adaptation strategy

30 Sep, 17:39

The French Agency for Development (AFD) on September 30 signed a credit agreement in Hanoi providing EUR20 million in preferential loans in support of a continuing programme to develop a long-term governmental climate change adaptation strategy for Vietnam.

Vietnam unveils new strategies to boost domestic market, aid businesses

Vietnam unveils new strategies to boost domestic market, aid businesses

As global trade uncertainties grow, Vietnam sees the domestic market not only as a key consumption driver but also a “lifeline” for businesses hit by protectionist export barriers.

Vietnam eyes US tilapia export boost as global supply falls

Vietnam eyes US tilapia export boost as global supply falls

Vietnam aims to increase tilapia output to 400,000 tons by 2030, making it the second-largest freshwater export species after pangasius.

Vietnam’s enterprises must act fast to weather US tariff shock: Experts 

Vietnam’s enterprises must act fast to weather US tariff shock: Experts 

Many of the key Vietnamese exports, such as wood products, electronics, and textiles, that are not on the US exclusion list could face steep tariffs.

Vietnam's mobile money pilot program extended to end of 2025

Vietnam's mobile money pilot program extended to end of 2025

Mobile Money, launched by the Ministry of Science and Technology, differs from e-wallets by linking users’ payment accounts directly to mobile phone numbers.

Vietnam taps innovation, global ties to elevate national brand

Vietnam taps innovation, global ties to elevate national brand

Vietnam is intensifying efforts to enhance its national brand, leveraging innovation, global partnerships, and strategic policies to bolster its global competitiveness and market presence.

Vietnam extends US$3.9 billion loan package for agro-forestry-fisheries

Vietnam extends US$3.9 billion loan package for agro-forestry-fisheries

The government has expanded the scope and scale of the credit program for the sectors which brought about US$62.4 billion worth of exports in 2024.

Vietnamese public shows rising satisfaction in 2024 PAPI survey

Vietnamese public shows rising satisfaction in 2024 PAPI survey

The 2024 PAPI survey found increasing citizen satisfaction with governance, but highlighted persistent administrative challenges, climate vulnerability, and gaps in access to public services.

Hanoi calls for VAT cuts and credit support amid US tariffs

Hanoi calls for VAT cuts and credit support amid US tariffs

Hanoi’s export-driven economy faces new challenges as the US, one of its top trading partners, considers imposing steep tariffs on Vietnamese goods.