The UK to inject US$6 billion green finance for Vietnam

THE HANOI TIMES — The United Kingdom will provide up to US$6 billion in green financing to support Vietnam’s sustainable development and energy transition, marking a major step in the two countries’ newly upgraded Comprehensive Strategic Partnership.

The announcement was officially made on October 29 during Party General Secretary To Lam’s visit to the UK, where the two countries elevated their relations to the highest level in Vietnam’s foreign policy framework.

In talks with British Prime Minister Keir Starmer, the two leaders agreed that the new partnership marks a historic milestone in five decades of bilateral relations and opens a new era of cooperation based on trust, innovation and sustainability.

Both sides agreed to enhance cooperation in mobilizing green finance for low-emission and resilient growth through the UK–Vietnam Green Finance Partnership to share expertise, deploy innovative green financial instruments and remove institutional barriers so that the private sector can take the lead in advancing green growth and sustainable trade.

A memorandum of understanding signed between UK Export Finance (UKEF) and Vietnam’s Ministry of Finance will enable access to UKEF’s export credit program, which offers up to £5 billion (US$6 billion) for potential investments in Vietnam.

Both countries also plan to expand cooperation in trade finance through transparent and effective mechanisms to strengthen cross-border investment.

The UK and Vietnam will collaborate to develop international financial centers in Ho Chi Minh City and Danang under the UK–Vietnam International Financial Center Partnership. Drawing on the UK’s experience as a global financial hub, the support will help Vietnam expand its capital markets and promote financial technology, green finance and insurance services.

The UK also reaffirmed its support for Vietnam’s Just Energy Transition Partnership (JETP) as a key member of the International Partners Group. A new Vietnam–UK Clean Energy Partnership will focus on renewable energy, offshore wind and power grid modernization, along with cooperation on climate adaptation, biodiversity conservation, sustainable fisheries and forest carbon markets.

The commitment to green finance and energy transition reflects one of six key pillars in the upgraded Vietnam–UK partnership, alongside politics and security, economy and finance,  science and innovation, education and culture, and regional and global coordination.

Political trust, defense and security in the spotlight

Both sides pledged to deepen political trust through regular exchanges of high-level delegations and dialogues between the Communist Party of Vietnam, the Vietnamese Government, the National Assembly and their UK counterparts. Mechanisms such as the Strategic Dialogue and Maritime Dialogue will be strengthened to expand security and defense cooperation.

They also reaffirmed their commitment to multilateralism and cooperation under ASEAN-led mechanisms, with Vietnam welcoming the UK’s active role in maintaining regional stability.

Defense and security collaboration will continue under the existing Defense Cooperation Memorandum of Understanding, focusing on peacekeeping, maritime security and combating organized and cybercrime.

Remarkably, the two countries reaffirmed their commitment to free, fair and sustainable trade under the UK–Vietnam Free Trade Agreement (UKVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

Mechanisms such as the Vietnam–UK Joint Economic and Trade Cooperation Committee (JETCO) and a new annual business forum will promote dialogue between the two business communities.

Science, technology and innovation are key drivers of the partnership. The two countries will implement a new Memorandum of Understanding on Science, Technology and Innovation Cooperation to strengthen research collaboration in healthcare, green growth and emerging technologies.

Cooperation will extend to digital transformation and public health, focusing on disease prevention, aging populations and healthcare innovation.

Education and cultural exchange remain central to the bilateral relationship, as they agreed to renew their education MoU to foster academic collaboration in artificial intelligence, semiconductors, biotechnology and aerospace.

The UK reaffirmed its support for English teaching in Vietnam and for making English a second language by 2035. The two countries will also deepen cooperation in culture, sports, tourism and media.

At the local level, the Ho Chi Minh City–Liverpool City Region City2City Partnership exemplifies growing collaboration in innovation, sustainability and the green transition.

Regionally, Vietnam and the UK share a vision of peace, stability and prosperity based on respect for sovereignty and international law. They emphasized the peaceful settlement of disputes under the 1982 United Nations Convention on the Law of the Sea (UNCLOS) and reaffirmed support for developing a substantive Code of Conduct in the South China Sea.

Both countries also reaffirmed their commitment to promoting and protecting human rights in line with the UN Charter and international law.

Earlier on October 28,  speaking at the University of Oxford, Party General Secretary To Lam called for a new, practical and measurable model of cooperation between Vietnam and the UK that delivers real benefits to both nations.

He said this partnership should combine the UK’s strengths in science, technology, education and finance with Vietnam’s priorities in digital and green transformation, human resource development and institutional reform.

He stressed that the relationship should go beyond technology transfer and become a process of co-creating the future, with Oxford playing a concrete role through its tradition of linking knowledge and public policy.

The UK’s US$6 billion green finance commitment and the launch of new bilateral partnerships demonstrate the shared determination of both countries to advance a sustainable, inclusive and forward-looking future.