Asialink and Climateworks Centre have launched an initiative allowing Australian businesses to invest in Vietnam’s green economy, focusing on renewable energy resources and sustainable development.
The Australia-Vietnam Green Economy Program, backed by the Australian Department of Foreign Affairs and Trade, aims to promote collaboration and development between Australian and Vietnamese governments and businesses in the green economy.
The program, which includes five briefing papers, roundtable discussions, and webinars, aims to provide insights into Vietnam and Australia’s shared ambition to transition to a clean energy economy, culminating in a summit in Ho Chi Minh City next April.
According to Asialink Business CEO Leigh Howard, the Australia-Vietnam Green Economy Program demonstrates the country’s commitment to long-term economic ties, mutual progress, and a shared vision for a greener future.
“This initiative embodies the spirit of collaboration, bridging two nations with a common goal of sustainability and economic prosperity. It’s a testament to what can be achieved by combining our strengths and working towards a better future,” Howard said.
Monash University‘s Climateworks Centre has released the third briefing paper, highlighting the vast potential for manufacturing and exporting decarbonisation technologies from Vietnam, urging Australian businesses to explore opportunities to participate in this era.
Climateworks Centre CEO Anna Skarbek emphasised the importance of an enabling policy environment in promoting the green economy partnership.
“Our program will inform decision-making and facilitate dialogue that can accelerate the energy transition, mobilise financing, and increase partnership for skills and innovation,” Skarbek said.
Australian Ambassador to Vietnam Andrew Goledzinowski commented, “Australia is committed to fostering green economy collaboration with Vietnam.”
In June 2023, the Australian Government announced an AUD105 million aid package for sustainable infrastructure planning and private investment in clean energy infrastructure in Vietnam.
As Vietnam works to regulate its energy sector, it is becoming a more appealing investment location as it pursues its long-term net zero aim. Its 2023 National Electricity Development Plan emphasised the growth of power sources and the construction of transmission infrastructure to meet the nation’s increasing energy consumption.
According to the most recent briefing paper, The supply chain of decarbonisation technologies in Vietnam, worldwide demand for solar, wind, energy storage, semiconductors, and hydrogen is increasing, ushering in a new era of investment in decarbonisation technologies.
Climateworks Centre Southeast Asia Lead Trang Nguyen said Vietnam is an emerging leader in the region, leveraging its complex supply chain to produce clean energy and foster a green economy.
“The geopolitical landscape underpins the need for diversification in the supply chains for decarbonisation technologies. Vietnam, with its progressive trade policies and existing manufacturing capabilities, is posed to play a significant role,” Nguyen stated.
“The potential to export decarbonisation technologies from Vietnam is vast. As Vietnam plans to attract foreign investment, Australian companies have an opportunity to partake in the era of decarbonisation.”
According to the briefing paper, work on policy adjustments and regulatory measures is making regional investment in Vietnam more appealing. The Just Energy Transition Plan, worth $15.5 billion, emphasised the importance of private investment.
“Intentional efforts from both local and international investors, such as Australia, along with the private sector’s active role in expanding green investments, play an indispensable part in Vietnam’s journey towards a green and resilient energy infrastructure,” said Nguyen.
She added, “Expanding cooperation with Vietnam to co-define key areas of low-carbon technology trade and FDI cooperation aligned with priorities of the Australian Government’s trade and development objectives, can set the stage for the development of strategically integrated export promotion strategies at a national level.”
Asialink CEO Martine Letts said: “Southeast Asia’s journey to a sustainable future unveils significant collaborative potential for Australia and Vietnam. The Australia-Vietnam Green Economy Program showcases the importance of knowledge-sharing, cultivating relationships, and equipping Australian businesses for these emerging opportunities”.
