The signing ceremony took place during the official visit of French President Emmanuel Macron to Vietnam, following his meeting with President of the Socialist Republic of Vietnam Luong Cuong.

The agreement was signed by Mr. Rémy Rioux, CEO of AFD, and Mr. Pham Le Phu, President and CEO of EVNNPT.

This investment will finance three sub-projects, including the construction of two new 500kV substations and associated transmission lines located in Binh Duong and Dong Nai—two of the fastest-growing provinces in southern Vietnam. These projects are expected to enhance grid stability and operational efficiency, meeting the critical infrastructure demands required to sustain economic growth and accelerate Vietnam’s energy transition.

Credit agreement signing ceremony between AFD and EVNNPT witnessed by Presidents of France and President of Socialist Republic of Viet Nam

The agreement reaffirms France’s commitment under the Just Energy Transition Partnership (JETP), through which France has pledged to mobilize up to €500 million in concessional loans to support Vietnam’s energy transition between 2023 and 2027.

This is the first JETP project approved by an international partner, and also represents the first public financing package among the financial commitments made by the international community in support of JETP Vietnam since 2022.

The project reflects Vietnam’s strong determination to move toward a low-carbon, climate-resilient, and sustainable energy future, in alignment with its national carbon neutrality goals.

It also stands as a testament to the long-standing cooperation between AFD and EVNNPT in developing a more modern, reliable, and environmentally friendly electricity infrastructure.

As one of the fastest-growing economies in the world, Vietnam is seeing soaring demand for electricity driven by rapid industrial and commercial development. This demand is projected to double by 2030 compared to 2020. Despite significant progress in renewable energy development, a stable and flexible transmission network remains essential to support energy restructuring and ensure a reliable power supply.

In addition to financial support, AFD is also facilitating technical cooperation between Réseau de Transport d'Électricité (RTE) of France and EVNNPT. This cooperation will include expert exchanges between EVNNPT and French specialists, focusing on areas such as: 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.

AFD is a French public financial institution responsible for implementing France’s policy on development cooperation and sustainable investment. Through financing public projects, supporting NGOs, scientific research, training on sustainable development, and awareness-raising efforts in France, AFD promotes and accelerates transformative initiatives toward a more just and sustainable world.

Translator: Hoàng Duy Khánh