ADB to step up support for Vietnam’s green transition: president

Masatsugu Asakawa, president of the Asian Development Bank (ADB), pledged continued support for Vietnam’s green transition during a Tuesday visit to the Selex electric motorbike plant in Hanoi.

The visit to the Selex Smart Electric Vehicles JSC’s factory in Gia Lam district was part of activities commemorating the 30th anniversary of cooperative relations between ADB and Vietnam.

Nguyen Huu Phuoc Nguyen, CEO of Selex Motors, briefed the guest on the development process, production lines as well as technology used by the Selex Motors electric motorbike ecosystem.

Masatsugu Asakawa said he was impressed by the results that Selex Motors has achieved, adding that ADB was proud to be one of the company's first investors.

The development of companies like Selex Motors was important in the transition to clean energy and sustainable development, not only in Vietnam, but also in the region, he said.

ADB was committed to greater support for Vietnam’s green transition, Asakawa added.

Nguyen said that the ADB president’s visit will open up development opportunities for the clean energy industry in Vietnam in general and for Selex Motors in particular.

"Vietnam is standing in front of a once-in-a-century opportunity to transition to sustainable development with high added value to join the group of developed countries. I really hope we will catch this rare opportunity and Selex Motors will try our best to contribute a small part to the country's overall success," he said.

The July 2023 visit of US Treasury Secretary Janet Yellen to the Selex Motors factory showed that clean energy startups in Vietnam were attracting the attention of foreign leaders and businesses, Nguyen added.

According to a study by the UN Development Program (UNDP), Selex Motors' solutions help drivers increase their income by an average of 34% per year while significantly cutting carbon emissions.

Established in 2018, the company has developed a comprehensive smart electric motorbike ecosystem with its new generation battery-swapping network that solves the problem of inconvenience in recharging.

The company has also prioritized developing a domestic supply chain by having more than 80% of components produced in the country. This has been appreciated by foreign partners in the context of Vietnam becoming an important link in the new global supply chain, especially in the field of clean energy.

During its 30-year partnership with Vietnam, ADB has actively supported the country in solving many problems and challenges, especially those related to climate change.

Up to now, it has committed 456 loans, grants and technical assistance to Vietnam's public sector with a total value of $16.5 billion.

ADB's Vietnam Country Partnership Strategy 2023-2026 focuses on two main pillars: green transition and private sector development.

It is considering supporting implementation of the Just Energy Transition Partnership (JETP) and the Resource Mobilization Plan for JETP (RMP) announced by Vietnamese Prime Minister Pham Minh Chinh at the COP28 UN Climate Change Conference in Dubai last December.

It is also looking at ways to support Vietnam in developing a carbon market and cooperation mechanisms under Article 6 of the Paris Agreement.

The ADB is a multilateral development financial institution with 66 members including 49 countries in Asia and 19 others around the globe.