Dzung Trieu Law Firm_Vietnam’s fast growing development requires a substantive increase of energy production. Vietnam gets technical and financial support by Switzerland on its renewable energy development program. Together with the World Bank, both countries are ready to join their forces in this important field of sustainable energy production, to strengthen technical capacities of related actors and to contribute to the reduction of carbon dioxide production. The signing ceremony also marks an important milestone in the anniversary year of 40 years diplomatic relations between Switzerland and Vietnam (1971-2011).

On May 10, 2011, on behalf of Switzerland’s State Secretariat for Economic Affairs (SECO) and Vietnam’s Ministry of Industry and Trade (MOIT), the two representatives, Ms. Beatrice Maser Mallor, Ambassador, Head of Economic Development Cooperation (SECO) and Mr. Hoang Quoc Vuong, Vice Minister of MOIT, signed a bilateral agreement on implementation of Switzerland’s grant contribution of USD 2.43 million to the Renewable Energy Development Project (REDP).

The Renewable Energy Development Project (REDP), funded by the World Bank (WB) and implemented by MOIT, aims to increase the electricity supply to Vietnam’s national grid from renewable energy sources, on a financially, environmentally and socially sustainable basis. Around 15 to 25 sub-projects, developed by private investors, using renewable energy sources will be financed by the project through commercial banks.

The project includes three components: 1) on renewable energy investments 2) on regulatory framework development and 3) on renewable energy project pipeline development. Partner Banks, the Ministry of Industry and Trade, developers and other partners are beneficiaries of either the technical assistance or financial support under the REDP.

On behalf of Switzerland, SECO is newly co-financing the Renewable Energy Development Project in Vietnam. The Swiss contribution will support enterprises to conduct feasibility studies of diversified renewable energies, including wind, solar power and biomass and also be spent on capacity building for specialized universities and the relevant authority agencies in Vietnam.

Ms. Victoria Kwakwa, Country Director for the Word Bank in Vietnam mentioned: “The project helps to meet Vietnam’s increasing demand for electricity, to further expand and diversify its sources of electricity generation and to reduce carbon emission. We appreciate the cooperation with MOIT, and related partners like SECO in our joint efforts to make this project a success.”

Ms. Beatrice Maser Mallor, Ambassador, Head of Switzerland’s Economic Development Cooperation commended Vietnam for its effort to develop and optimize the use of renewable energy resources. She high-lighted: "To support renewable energy development is important for Switzerland. SECO is delighted to extend the cooperation with Vietnam in this field. Improvement of capacity for staff of participating banks and the Ministry of Industry and Trade to review and evaluate renewable energy sub-project proposals and re-financing applications, as well as the risk management related to these projects are crucial for the success of the project. The establishment of a well functioning and transparent regulatory framework will attract more private investors.” The Swiss grant will also support Vietnamese enterprises to explore more opportunities to invest in non-hydro, renewable energy sources, e.g. in wind, solar power or biomass.

Mr. Hoang Quoc Vuong, Vice Minister of Ministry of Industry and Trade (MOIT), focused on the following topics:

“Vietnam, a country of abundant potential on renewable energy and fully aware of the role of renewable energy in assuring energy security and mitigating climate change, has implemented various activities for strengthening development of renewable energy. However, the development of renewable energy in Vietnam is still not corresponding to its potential. With the assistance from the World Bank and Switzerland’s government to the Renewable Energy Development Project of Vietnam, we strongly believe that the project will significantly contribute to renewable energy development, mitigate climate change as well as strengthen the socio economic development in Vietnam.”

The signing ceremony marks an important milestone in the anniversary year of 40 years of diplomatic relations between Switzerland and Vietnam (1971 – 2011). It also reconfirms the commitment of Switzerland, to further strengthen the excellent bilateral rela¬tions and to continue its support and cooperation with Vietnam, especially in the broad field of economic development cooperation.

Switzerland has been providing bilateral assistance to Vietnam since 1993 with the overall aim to contribute to poverty reduction through sustainable economic development. Vietnam is one of the priority coun¬tries of the Swiss Economic Development Cooperation worldwide, thus re-confirms the importance of Swiss-Vietnamese bilateral relations. SECO’s support focuses on the promotion of stable macroeconomic conditions, an enabling business environment, private sector development, sustainable trade policies and the improvement of basic infrastructure.

For more information, please go to the project website, at:

http://web.worldbank.org/external/projects/main?pagePK=64283627&piPK=73230&theSitePK=387565&menuPK=387597&Projectid=P103238