The Australian Embassy in Vietnam and the Electricity Regulatory Authority of Vietnam (ERAV) signed an MoU on April 17 to collaborate on the development of a competitive electricity market.

The signing ceremony was witnessed by Jenny McAllister, Australian Assistant Minister for Climate Change and Energy, and Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan .

Tan emphasised the importance of developing a competitive electricity market that can support Vietnam’s ambitious decarbonisation agenda for Power Development Plan VIII.

"Creating a competitive electricity market alongside the appropriate regulatory frameworks can entice the private investment needed to achieve Vietnam’s renewable energy targets," said Tan.

The agreement commits the Department of Foreign Affairs and Trade and the ERAV, the energy regulator under the MoIT, to share its experience and develop cooperation activities to facilitate the development of the electricity markets.

The MoU will build on existing activities developed under the partnerships for infrastructure and other bilateral and regional programmes and supports the development of a competitive electricity retail market; provides practical suggestions on the regulatory framework and mechanisms for regulating transmission and distribution; and implements capacity building and training, along with other activities.

"Australia values our relationship with Vietnam. By strengthening climate, environment, and energy cooperation, we can realise the opportunities of a clean-energy future. I am pleased to see the growing relationship between ERAV and the Australian Embassy that will strengthen bilateral engagement on climate and energy," said McAllister.

In March, Australia and Vietnam elevated their relationship to a Comprehensive Strategic Partnership (CSP) with a focus on climate, energy, and the environment, which is the first of its kind for an Australian CSP.

"Australia has the same challenges and aspirations to ensure sustainable, secure, and fair electricity services and the foundation for prosperity and economic growth. This partnership provides an important opportunity to share knowledge and explore solutions for the Vietnamese power sector," said Australian Ambassador to Vietnam Andrew Goledzinowski.