The National Power Transmission Corporation (EVNNPT) and the French Development Agency (AFD) have signed a financing agreement worth $76.48 million to expand and modernize Vietnam’s power transmission network.
The investment will finance three sub-projects, including the construction of two 500 kV substations and associated transmission lines located in Binh Duong and Dong Nai, provinces in southern Vietnam. The projects are expected to enhance grid stability and operational efficiency to meet the infrastructure demands required to sustain economic growth and accelerate Vietnam’s energy transition.
Under the Just Energy Transition Partnership (JETP), France intends to mobilize up to $570.84 million in concessional loans to support Vietnam’s energy transition between 2023 and 2027.
The JETP project is approved by an international partner, and also represents the public financing package among the financial commitments made by the international community in support of JETP Vietnam since 2022. The project reveals Vietnam’s aim to achieve a low-carbon, climate-resilient, and sustainable energy future supporting its national carbon neutrality goals.
Vietnam is experiencing an increased demand for electricity due to rapid industrial and commercial development. The demand is projected to double by 2030 as compared to 2020. A stable and flexible transmission network is essential to support energy restructuring and ensure a reliable power supply.
Additionally, AFD is facilitating technical cooperation between Réseau de Transport d'Électricité (RTE) of France and EVNNPT. The cooperation will include expert exchanges between EVNNPT and French specialists, focusing on areas like:
- Technical standards and equipment specifications to ensure that Vietnam’s power infrastructure complies with the highest international standards;
- Cybersecurity measures to enhance the resilience of the energy infrastructure amid increasing grid digitalization; and
- Health, Safety, and Environmental (HSE) practices to optimize sustainable operations in line with global benchmarks.
