Multilateral infrastructure bank AIIB willing to join Vietnam’s $15.5-bln energy initiative JETP

China-headquartered Asian Infrastructure Investment Bank (AIIB) will help Vietnam develop infrastructure and renewable energy; and can join the country’s $15.5-billion Just Energy Transition Partnership (JETP), a senior exec said Monday.

AIIB president and chair of the board of directors Jin Liqun made the commitment in a meeting with State Bank of Vietnam (SBV) Governor Nguyen Thi Hong.

This would support Vietnam’s move towards green growth, digital economy, circular economy and climate change resilience, Jin Liqun said.

So far, the AIIB has funded three private sector projects in Vietnam with $223 million, covering Covid-19 response, development of solar power and hydropower, sustainable infrastructure and climate change adaptation, he noted.

SBV Governor Hong lauded the AIIB’s willingness to help develop infrastructure in Vietnam. The Vietnamese government, via the SBV as its representative at the AIIB, was willing to discuss suitable cooperation mechanisms, she said.

Vietnam and the International Partners Group (IPG) comprising the EU, the UK, France, Germany, the U.S., Italy, Canada, Japan, Norway and Denmark signed the JETP in December 2022.

The JETP aims to support Vietnam deliver on its ambitious Net Zero 2050 goal, accelerate peaking of its greenhouse gas emissions and facilitate its transition away from fossil fuels to clean energy. The JETP will mobilize an initial $15.5 billion of public and private finance over the next three to five years to support Vietnam's green transition.

Initial contributions to the JETP in Vietnam include $7.75 billion in pledges from the IPG together with the ADB and the IFC.

Vietnam is the third country to launch a JETP, following the successful launch of the South Africa JETP at COP26 and the Indonesia JETP at this year's G20 Leaders' Summit.