On November 14, the Japan Bank for International Cooperation (JBIC) signed an MoU with state-owned BIDV to support Vietnam’s decarbonisation efforts and the government's goal to achieve carbon neutrality and become a high-income country by 2050. The revised Power Development Plan VIII, announced in April, calls for a larger share of renewable energy in the power mix and expanded investment in transmission infrastructure to drive both economic growth and decarbonisation.

In line with government policy, the State Bank of Vietnam has outlined measures to accelerate green finance in the banking sector. BIDV, Vietnam’s largest commercial bank, has committed to achieving net-zero emissions by 2050 and pursuing similar sustainability initiatives. The MoU signing reinforces these aligned commitments between the government and BIDV.

In its Fifth Medium-Term Business Plan, released in June 2024, JBIC set out to support both carbon neutrality and economic growth, assisting countries in their unique pathways towards green transformation and energy transition. The newly signed MoU aligns directly with the objectives of this plan.

In 2022, the Japanese government proposed the Asia Zero Emission Community (AZEC), a framework to support energy transition efforts in Asia by leveraging Japanese companies’ technology and expertise. Vietnam is a key partner in AZEC, and the governments of Japan and Vietnam agreed to advance bilateral energy transition projects under this framework last April. The MoU signing aligns with the policies of both countries.

As Japan’s policy-based financial institution, JBIC will continue to promote business opportunities for Japanese companies through closer cooperation with key partners in the decarbonisation sector.