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Dec 24, 2017 / 11:45

Denmark aids US$3.1 million for Vietnam’s energy development in 2017-2020

Denmark will continuously provide DKK21.6 million (US$3.15 million) official development assistance (ODA) capital for Vietnam through the Vietnam-Denmark Energy Partnership Program for 2017-2020.

On behalf of Vietnamese and Danish governments, Vietnam Minister of Industry and Trade Tran Tuan Anh and Danish Ambassador to Vietnam Charlotte Laursen, on December 21 signed an agreement between the two governments on development cooperation in the program.
The program, which is funded by Danish Government, is aimed to support Vietnam in low-carbon emission energy development and energy efficiency promotion.
Previously, the Vietnam Ministry of Industry and Trade (MoIT) and the Danish Embassy in Vietnam on September also launched the Vietnam Energy Outlook Report 2017, a joint effort of MoIT and the Danish Energy Agency.
The program is aimed to support Vietnam in low-carbon emission energy development.
The program is aimed to support Vietnam in low-carbon emission energy development.
According to the report, which will be an important input to the development of the Vietnam Energy Master Plan and Power Development Plan in the future, Vietnam can reduce its dependence on imports of materials for power generation, especially coal, by developing renewable energy.
It particularly focuses on low-carbon development scenarios with the integration of renewable energy and recommendations for decision makers to secure a cost-efficient and sustainable energy sector. 
MoIT Deputy Minister Hoang Quoc Vuong said that with an average annual economic growth rate of 7.26% in the 2001-2010 period and 5.91% during 2011-2015, the demand for energy in Vietnam is increasing rapidly. In particular, the demand for electricity has continuously grown at a high rate, averaging between 13% per annum for 2001-2010 and approximately 11% per year between 2011 and 2015.
In order to ensure energy security and preserve national energy resources, the Government of Vietnam has implemented a range of policies towards the sustainable development of its energy sector, focusing on the sustainable development of renewable energy and promoting energy savings and efficient energy use.
Deputy Minister Vuong also stressed that the report is a product of great significance in Vietnam’s direction for energy development in linking it with economic growth, environmental protection and energy security.
According to Aisma Vitina, technical advisor from the Danish Energy Agency, Vietnam needs to implement supportive policies in order to achieve the goals of renewable energy development to increase the use rate of such energy sources among primary energy consumption to approximately 31% by 2020 and 32.3% by 2030.
She suggested that Vietnam needs to form a renewable energy market, as well as a reasonable electricity price policy, and preferential policies to support the development and use of renewable energy, including preferential import tax, corporate income tax, land incentives and priorities for research related to the development and use of renewable energy resources. In addition, it is important to ensure environmental protection, specifically, the environmental charge for fossil fuels to build a sustainable energy development fund.
Based on the proposed power system development scenarios, the report gives policy recommendations for the development of electricity and low-carbon emission energy by intensifying the use of renewable energies and promoting energy efficiency.
Denmark has been providing tremendous assistance for Vietnam in promoting sustainable development, particularly in energy sector.
Earlier, on June 18, 2015, a Memorandum of Understanding between the two ministries on cooperation on energy saving in renewable industries and renewable energy was signed.
In 2013 Denmark and Vietnam signed a comprehensive partnership agreement to prop up bilateral cooperation in trade and green growth.
Subsequently, new partnerships between the Danish Ministry of Climate, Energy and the Vietnamese Ministry of Industry and Trade, and Ministry of Construction were established to enable the sharing of Danish know-how and state-of-the-art technology in the energy sector with Vietnam authorities and businesses.
Since 1994 Denmark has provided Vietnam with more than US$1.3 billion in development aid, thus contributing to strong growth and economic development in Vietnam.