Vietnam has secured its first funding under the Just Energy Transition Partnership (JETP), with the French Development Agency (AfD) providing €67 million to the National Power Transmission Corporation (EVNNPT) for major transmission projects, VN Express has reported.
The publication notes that:
- Announced on May 28 during French President Emmanuel Macron’s visit, the loan will support two new 500kV substations and transmission lines in Binh Duong and Dong Nai, aiming to boost grid stability and support the country’s clean energy goals.
- This marks the first publicly disbursed international financing under JETP since Vietnam joined the initiative in 2022. JETP is backed by a US$15.5 billion pledge from the International Partners Group, including France, the EU, Japan, and others.
- The Ministry of Industry and Trade has worked to align legal frameworks—such as the revised Electricity Law and Power Development Plan VIII—to accelerate JETP implementation.
- Two more large-scale JETP-aligned projects are expected to receive funding soon: Bac Ai pumped storage phase 2 and the Tri An hydropower plant expansion.
Vietnam’s receipt of its first JETP funding—€67 million from France for high-voltage grid projects—marks a major shift toward implementable energy transition projects, creating clearer entry points for foreign firms.
This milestone signals that international concessional finance is beginning to flow, improving the bankability of large-scale infrastructure, especially in transmission, hydropower, and energy storage.
However, risks remain.
While the Vietnamese government is reforming legal frameworks such as the Electricity Law and Power Development Plan VIII, regulatory uncertainty and slow project approvals still pose challenges.
Success for foreign firms will depend on their ability to align with government priorities, secure trusted local partners, and navigate evolving compliance requirements. The progress of JETP-backed projects like Bac Ai and Tri An shows momentum—but execution will require both patience and strategic positioning.
See also: Rethinking Financing Vietnam’s Clean Energy Transition