HCMC — Vietnam and the United Kingdom signed two memoranda of understanding to expand cooperation on clean energy and green finance during a high-level economic conference in London on October 30.
The agreements were reached during Vietnamese Party General Secretary To Lam’s visit to the UK, where the two countries elevated their ties to a Comprehensive Strategic Partnership.
The clean energy MoU was signed by the UK Foreign, Commonwealth and Development Office and Vietnam’s Ministry of Industry and Trade. It outlines cooperation to expand renewable energy, support coal phase-down plans, and strengthen power transmission systems under the Just Energy Transition Partnership (JETP).
The partnership also aims to mobilize public and private capital for green transport and infrastructure, improve regulatory frameworks to attract clean energy investment, promote inclusive approaches to energy transition, and support technology and innovation.
Both sides also announced progress on JETP implementation, including 11 technical and financial initiatives backed by the UK. These include a US$50 million green credit line from British International Investment (BII) to VPBank as part of a US$350 million syndicated loan, and US$24 million from the Private Infrastructure Development Group (PIDG) for rooftop solar and electric vehicles. PIDG will also provide a US$47 million guarantee for Vietnam’s first clean water green bond and explore a bond guarantee company to mobilise additional capital.
Other UK-supported programs include offshore wind development, grid enhancement, coal transition planning, circular economy research, and low-emission transport policy support.
The other MoU, meanwhile, established a Green Finance Partnership between the UK and Vietnam’s Ministry of Finance. The agreement focuses on developing Vietnam’s green capital market, including support for the country’s planned international financial center, and improving policies to strengthen the investment climate.
The UK will mobilize tools under its Growth and Investment Partnership (GIP), including support from BII, PIDG, UK Export Finance and UK centers of expertise.
British Ambassador to Vietnam Iain Frew said the agreements reflect strengthened climate cooperation under the upgraded partnership and reaffirm both countries’ commitment to advancing a just energy transition and mobilising green finance for sustainable growth.
