- The EU pledged 430 million EUR to support Vietnam’s Bac Ai pumped-storage hydropower project under the Just Energy Transition Partnership.
- The funding aims to boost Vietnam’s renewable energy expansion and strengthen its national power stability.
The European Union (EU) has pledged €430 million (US$497.7 million) to advance Vietnam’s Bac Ai pumped-storage hydropower project, a flagship initiative under the country’s Just Energy Transition Partnership (JETP), officials announced at the Global Gateway Forum held in Brussels from October 9 to 10.
EU Energy Commissioner Jozef Síkela said the Bac Ai project represents a cornerstone of EU–Vietnam cooperation to build a green, stable, and sustainable energy system. He added that through the Global Gateway initiative, the EU is translating its climate commitments into tangible investments that promote inclusive growth and environmental protection.
Furthermore, the project aims to enhance grid stability, enable greater integration of renewable power, and support Vietnam’s carbon reduction and sustainable development goals.
The funding package forms part of the Team Europe Initiatives, which brings together the EU, its member states, and major development financiers including the French Development Agency (AFD), the European Investment Bank (EIB), Germany’s KfW, Italy’s Cassa Depositi e Prestiti (CDP), and PROPARCO, AFD’s private-sector arm.
Under the 2021–2027 framework, the EU has committed €293 million in direct assistance to Vietnam, while European partners have mobilised more than €2.8 billion to support the JETP. The combined investment will drive green infrastructure, accelerate the energy transition, and strengthen regional power connectivity across ASEAN.