JBIC Signs MOU with Commission for Management of State Capital at Enterprises of Vietnam
Strengthening Cooperation for Promoting Energy Transition in Vietnam
- Region: Asia
The Japan Bank for International Cooperation (JBIC; Governor: MAEDA Tadashi) signed on November 24 a Memorandum of Understanding (MOU) with the Commission for the Management of State Capital at Enterprises (CMSC) of the Socialist Republic of Viet Nam (Vietnam), to enhance cooperation for the promotion of energy transition. Taking the opportunity of Prime Minister of Vietnam H.E. Pham Minh Chinh's visit to Japan, the documents were exchanged in the presence of Prime Minister of Japan H.E. KISHIDA Fumio and Prime Minister Pham Minh Chinh.
The MOU is intended to further enhance the relationship with CMSC and relevant ministries and authorities through regular meetings in order to promote the energy transition of Vietnam's base load power sources from coal to gas and renewables. Under its auspices, CMSC, a governmental agency as assigned by the Government of Viet Nam, exercises the rights and responsibilities of the State owner's representative for state-owned enterprises including Vietnam Electricity (EVN) and Vietnam Oil and Gas Group (PVN).
In October 2021, the Government of Vietnam announced its National Green Growth Strategy. In addition, at the 26th session of the Conference of the Parties to the United Nations Framework Convention on Climate Change (COP 26) in November 2021, the Government expressed its intention to make use of its resources to achieve net-zero emissions by 2050. The country plans to reduce the rate of coal in its power generation sources and raise that of renewables such as solar and wind power. The MOU will support the expansion of business opportunities by Japanese companies in these sectors.
As Japan's policy-based financial institution, JBIC will continue to financially support the promotion of energy transitions in Vietnam, creation of business opportunities and promote business by Japanese companies.
Photo: VGP/Nhat Bac