American utility AES pledges long-term investment support for Vietnam’s net-zero emissions goal

American energy developer AES is committed to long-term operations in Vietnam, helping the country reach its carbon neutrality target by 2050.

The commitment was made Tuesday by AES executive vice president Juan Ignacio Rubiolo at a reception with Prime Minister Pham Minh Chinh in Hanoi.

AES hoped to make contributions to Vietnam’s efforts to build an independent and self-reliant economy, including in energy, and improve its capacity to cope with external shocks like the current global energy crisis, Rubiolo said.

Chinh said the government would continue to support AES’s Vietnam projects to ensure their sustainable success and effectiveness. The PM hailed the corporation for its constructive policy recommendations for Vietnam, especially in green and clean energy, contributing to energy transition and achieving its net zero goal by 2050.

He felt development partners should fund Vietnamese companies at reasonable interest rates, help improve management capacity and workforce training and facilitate their joining the global value chain, particularly in the transfer of renewable energy technology.

Vietnam seeks to develop its own manufacturing industry for renewable energy equipment, the PM said.

As one of the top 500 U.S. companies listed by Fortune Magazine and one of the world’s leading energy companies, AES has vast experience in electricity production and distribution and infrastructure development in the gas industry. It has been operating in Vietnam since 2010.

Late last month, AES received in-principle approval from the Ministry of Industry and Trade for its VND50,432 billion ($2.11 billion) Son My 2 LNG-to-power in the south-central province of Binh Thuan. The built-operate-transfer project’s development timeline is from 2023 to 2028. The plant, located in Son My commune, Ham Tan district, features three 750-MW turbines.

It will be fueled by imported LNG supplied from Son My LNG terminal, which is capable of providing gas for power plants with capacities of 4,500 MW.

AES, which owns the 1,242 MW Mong Duong 2 coal-fired power plant in Quang Ninh, is also considering developing a $13 billion offshore wind farm in Binh Thuan. It submitted a letter of intent for the 4GW project to the Vietnamese mission attending an annual Vietnam-U.S. energy security dialogue in Washington D.C. in July