Vietnam and Australia have reached an agreement to work together on climate and energy development to boost sustainability in both countries.

Representatives from both nations discussed the benefits of cooperation to advance green energy policy and development, at the Australia-Vietnam Green Economy Summit in Ho Chi Min City.

The collaboration will include the sharing of knowledge between the nations, as well as facilitating the exploration of potential new trade agreements and fostering connections between businesses from both countries.

The Australian Energy Regulator is actively sharing Australia's expertise in developing clean energy regulations with the Energy Regulatory Authority of Vietnam. This collaboration aims to assist Vietnam in establishing a robust policy framework for clean energy.

In addition, Australia has further pledged A$105 million to bolster development and private investment in sustainable infrastructure planning in Vietnam, with a specific emphasis on promoting greater adoption of clean energy initiatives.

Australia’s Assistant Minister for Climate Change and Energy, Jenny McAllister commented: “Cooperation is the key to unlocking economic opportunities for Australia and Vietnam as our countries and international partners undergo a clean energy transformation.” 

During March, the official relationship between Australia and Vietnam was upgraded to a Comprehensive Strategic Partnership (CSP), with this formal agreement bringing a focus on “Strengthening Climate, Environment and Energy Cooperation.”

Vietnam has become an appealing destination for sustainability investments as the nation endeavours to expand and diversify its renewable energy capacity in alignment with its net-zero targets.

In March this year, Dutch company Fugro prolonged a memorandum of understanding with Vietnam for an additional two years to advance the development of offshore wind farms in Vietnamese waters. 

A Fugro representative stated that “Vietnam holds tremendous potential for offshore wind power.”