Vietnam and Australia sign agreement on energy transition project
The Aus4Growth project is expected to receive up to A$18.3 million in Australian grants and run from 2026 to 2031.
Vietnam and Australia have signed a supplementary agreement for an energy partnership expected to receive Australian grant funding of up to A$18.3 million. The Aus4Growth project aims to help Vietnam shift towards cleaner energy while strengthening electricity security and supporting its 2050 net-zero emissions target.
Scheduled to run from 2026 to 2031, the project will be funded through Australia’s Department of Foreign Affairs and Trade (DFAT) as non-refundable official development assistance. Vietnam’s Ministry of Industry and Trade and the Australian Embassy jointly organised the signing.
The work covers three areas: low-carbon energy development, including renewables and a competitive electricity market; power system modernisation using advanced technology and digital tools; and stronger sector capabilities through training and exchanges of information and experience.
Deputy Minister of Industry and Trade Truong Thanh Hoai said the partnership would bring financing as well as access to international expertise and technical solutions. Renee Deschamps, chargé d’affaires a.i. at the Australian Embassy, reaffirmed Australia’s support for Vietnam’s electricity market, renewable energy, grid modernisation and capacity building.
The ministry has appointed its Electricity Regulatory Authority to lead implementation and coordinate management arrangements with DFAT, the embassy and other partners. Technical assistance will be shaped by priorities and practical requirements in Vietnam’s power sector.
