Vietnam and the World Bank have immense opportunities to work together in energy transition and climate change response, Deputy Prime Minister Tran Hong Ha said during a meeting with Carolyn Turk, World Bank Country Director for Vietnam on April 26.

Vietnam's Deputy Prime Minister Tran Hong Ha and World Bank Country Director Carolyn Turk. Photo: Minh Khoi

The Deputy Prime Minister highlighted his interactions with senior World Bank officials during recent international conferences. Both sides discussed institutional issues and priority projects related to Vietnam's economic restructuring, food security, and energy transition.

Ha acknowledged that Vietnam's demand for concessional loans remains substantial and that private sector participation in socio-economic infrastructure projects has increased due to access to flexible capital and streamlined procedures.

He said that several domestic and foreign commercial banks had provided significant credit resources for renewable energy projects in Vietnam without requiring commitments or guarantees from the Government.

The Deputy Prime Minister expressed concern about the strict regulations and complicated procedures for accessing government-guaranteed concessional loans from international financial institutions such as the World Bank.

He highlighted the challenges in adopting energy transition technologies such as green hydrogen production, green ammonia, electricity storage, and smart grid construction to maintain power system stability.

Ha also expressed hope for the World Bank's continued support for projects related to carbon neutralization, reforestation, agricultural emission reduction, carbon capture, green transportation, and rooftop solar power for offices, hospitals, schools, and other facilities to accelerate Vietnam's energy transition.

The Deputy Prime Minister highlighted the immense potential for cooperation between Vietnam and the World Bank in energy transition and climate change response. He invited the World Bank to share its experience and strengthen capacity building and provide financing to help Vietnam establish the necessary regulatory framework and implement projects that promote sustainable development with economic and environmental benefits.

Carolyn Turk, World Bank Country Director for Vietnam, thanked the Deputy Prime Minister for the meeting and discussed progress in preparing and establishing the Country Partnership Framework (CPF) with Vietnam for 2023-2027. She highlighted the CPF's focus on resilience to climate change in vulnerable areas such as the Mekong Delta, green investment, and the transition to a low-carbon economy.

Turk praised the Vietnamese Government's solutions and direction in developing renewable energy to achieve the goal of net zero carbon emissions.

She reaffirmed the World Bank's support in helping Vietnam establish a voluntary carbon credit market. She also stated that the World Bank would continue to accompany Vietnam on its development path and actively contribute to the Vietnam 2045 Report to help achieve its development goals.