Australia commits AUD245 million to boost Vietnam's renewable energy and climate resilience

19 April 2024
Australia commits AUD245 million to boost Vietnam's renewable energy and climate resilience

Vice Chairman of Ho Chi Minh City People's CommitteeVo Van Hoan shared insights with the business community, stating, "Ho Chi Minh City has undergone rapid urbanisation and faces significant challenges regarding sustainable development. The city is committed to implementing the national strategy on green growth for 2024–2030, aiming for economic prosperity and environmental sustainability."

He further highlighted, "Recently, the city called for investments in 28 projects as part of a green growth programme conducted with the World Bank, which includes transforming Ho Chi Minh City High-tech Park into the country’s first net zero high-tech park, marking a significant shift in our economic model from labour and resource-intensive to renewable energy utilisation.”

Hoan elaborated on the strategic initiative. "The city is leading in green finance, aiming to develop a green bond framework for local government through green credit. We are also pioneering in green energy transformation with a goal to achieve 35-45 per cent of clean, renewable electricity by 2030, and in reducing carbon emissions in industrial supply chains, leveraging unique mechanisms under Resolution 98 on carbon credit trading, with an ambitious target to reach net-zero emissions by 2050."

Jenny McAllister, Australian Assistant Minister for Climate Change and Energy, remarked, "Australia and Vietnam are actively sharing the benefits of transitioning to clean energy. Cooperation is key to unlocking economic opportunities for both countries as we and our international partners move towards clean energy transitions."

"With the goal of enhancing capabilities in renewable energy, Vietnam is becoming an attractive destination for investment, focusing on long-term targets for net-zero emissions," McAllister added, noting that Australia has committed approximately AUD245 million (nearly $158 million), comprising AUD150 million for energy transition in Vietnam and AUD95 million to assist Vietnam in addressing climate change challenges.