Vietnam’s Ministry of Industry and Trade and the Australian Embassy in Vietnam signed a supplementary agreement in Hanoi on October 15, 2026, formally launching the energy component of the Vietnam-Australia Partnership for Economic Growth (Aus4Growth). The project, funded by up to AUD 18.3 million in Australian grants from 2026 to 2031, will provide technical assistance for Vietnam’s competitive electricity market, power system modernisation, and clean energy transition.
Key Facts At A Glance
- The supplementary agreement was signed on the afternoon of October 15, 2026 in Hanoi between the governments of Vietnam and Australia.
- The Australian government is funding the project through DFAT, with up to AUD 18.3 million (about USD 12.73 million) in non-refundable official development assistance.
- The project runs from 2026 to 2031.
- It has three focus areas: a sustainable, low-carbon energy sector including a competitive electricity market and renewables; modern power system development and operation using advanced technology and digital transformation; and power sector capacity building and knowledge sharing.
- The Ministry of Industry and Trade designated its Electricity Authority as project owner.
- The signing builds on the Comprehensive Strategic Partnership the two countries established in March 2024.
Vietnam’s Ministry of Industry and Trade (MOIT) and the Australian Embassy in Vietnam held the signing ceremony in Hanoi on the afternoon of October 15, 2026. The agreement formally starts the project titled “Vietnam-Australia Partnership for Economic Growth, Energy Sector” (Aus4Growth Energy). Deputy Minister of Industry and Trade Truong Thanh Hoai and Renee Deschamps, Chargé d’Affaires a.i. of the Australian Embassy in Vietnam, attended along with representatives of agencies from both sides.
The Australian government is funding the project through its Department of Foreign Affairs and Trade (DFAT), with up to AUD 18.3 million, or about USD 12.73 million, in non-refundable official development assistance for 2026 to 2031. The project aims to help Vietnam move toward a clean, sustainable, market-based energy sector, secure energy supply, deliver reliable electricity at reasonable cost, and reach net-zero emissions by 2050.
Project Scope
The project has three main areas of cooperation. The first is a sustainable, low-carbon energy sector, including a competitive electricity market and renewable energy. The second is modern power system development, management, and operation through advanced technology and digital transformation. The third is building the power sector ecosystem through capacity building and information and experience sharing among stakeholders.
Public reports on the signing did not break down how the funding will be split among the three areas or list specific technical assistance activities.
Statements And Implementation
Deputy Minister Truong Thanh Hoai said the project would provide financial resources as well as international knowledge, experience, and technical solutions to develop a competitive electricity market, modernise the power system, and advance a sustainable energy transition in Vietnam.
Deschamps described the signing and the formal start of the project as a milestone in bilateral energy cooperation, turning priorities under the two countries’ Comprehensive Strategic Partnership, established in March 2024, into concrete activities. She said Australia would continue to support Vietnam’s energy transition through assistance in electricity market development, renewable energy, grid and power system modernisation, and capacity building for the power sector.
MOIT designated its Electricity Authority as project owner, responsible for setting up management arrangements and coordinating with DFAT, the Australian Embassy, and other partners. According to the ministry, the parties will begin technical assistance activities after the signing based on the priorities and practical needs of Vietnam’s power sector.