Driving projects through a Japan-Vietnam public-private team to balance economic growth and decarbonization

Structuring projects through a public-private dialogue framework, first established with an AZEC partner country

In March 2025, a team comprising the Embassy of Japan, JBIC, and Japanese companies reached agreement with the Vietnamese Ministry of Industry and Trade on 15 projects totaling approximately USD20 billion. This first round of Vietnam-Japan cooperative projects under AZEC was part of the new “Project Accelerating Platform (PAP)” supporting the realization of energy operations involving Japanese companies, and was on the agenda at the Vietnam-Japan summit meeting in April.

In a first among AZEC partner countries, a Vietnam-Japan public-private dialogue framework was established in Vietnam in July 2023. JBIC serves as a team leader together with the Embassy of Japan and Vietnam’s Ministry of Industry and Trade, and is working with 45 Japanese companies to develop the business environment and support projects in areas like renewable energy and the power grid.

“Forming the team was like drawing a picture on a blank canvas. From conceptualization to coordination with the Vietnamese side, I was able to draw on the policy dialogue experience that I have built since I was assigned to Vietnam in 2019," said AGUIN Toru, Chief Representative of the JBIC Representative Office in Hanoi.

Paving the way to a high-income, carbon-neutral economy through Japanese technology and finance

Vietnam enjoys one of the fastest-growing economies in ASEAN, aiming to be a high-income economy by 2045. It has also ambitiously targeted carbon neutrality by 2050 without sacrificing economic growth. To achieve that, Vietnam must boost electric power generation at a rate exceeding the government's economic growth targets－8 percent in 2025 and 10 percent or more from 2026 to 2030―while increasing the share of clean energy.

The Eighth National Power Development Plan aims to more than double power generation capacity between 2021 and 2030 (to 183 GW), including significantly increasing solar and wind, as well as transition fuels such as gas. Total investment from 2026 through 2030 is estimated at USD136.3 billion.

The AZEC/GX Promotion Working Team has proposed projects using Japan’s decarbonization technologies while considering Vietnam’s needs. JBIC has provided loans for projects including roof-top solar power generation in a Japanese-affiliated industrial park, gas field development for a power plant, biomass fuel production, and power grid upgrades. Meanwhile, discussions between Vietnam and Japan continue on issues such as regulatory improvements.

Vietnam is one of the most promising destinations for business expansion in ASEAN for Japanese companies, with approximately 2,400 companies operating there. AZEC's activities expand electricity business opportunities for Japanese companies, while contributing to Vietnam's growth, decarbonization, and energy supply for Japanese businesses operating in the country.

“We are working to ensure diverse win-win situations for both Vietnam and Japan,” states AGUIN emphatically. “Going forward, with a focus on individual projects under PAP, Vietnam and Japan will discuss issues and solutions for their realization. We intend to get these new initiatives on track rapidly and further examine support measures that only JBIC can deliver.”

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