Green strategic partnership inked between Vietnam and Denmark

Virtual meeting between Vietnamese Prime Minister Pham Minh Chinh and Danish Prime Minister Mette Frederikse

As part of the celebration of the 52^nd anniversary of the establishment of bilateral relations, both sides have agreed to establish a Green Strategic Partnership.

Acknowledging the close ties established between the parties in multiple areas, in particular relating to sustainable development, climate change, and green transition – the Green Strategic Partnership will build on and supplement the strong existing Joint Statement on the Comprehensive Partnership between the Government of the Socialist Republic of Vietnam and the Government of Denmark established in September 2013.

It will also complement the Joint Declaration between the Socialist Republic of Vietnam and the Government of Denmark on the Establishment of the Strategic Partnership in the areas of climate change, environment, energy and green growth established in November 2011.

The Green Strategic Partnership will support the materialisation of the parties’ endeavours to promote a green transition, further global ambition on climate, environment, and nature, as well as a socially just green transition that creates green jobs and avoids increasing inequality.

The partnership is a mutually beneficial arrangement to advance political cooperation, expand economic relations relevant to green growth, create jobs, and strengthen cooperation on addressing global challenges and solutions on green transition and climate change; with a focus on an ambitious implementation of the Paris Agreement and the United Nations Sustainable Development Goals.

Climate, environment, and energy

The parties will boost cooperation in greenhouse gas emission reductions to support Vietnam to develop a climate-resilient and low carbon economy achieve its net-zero target in 2050 and promote the development of the circular economy.

With the approved Energy Master Plan, the Power Development Plan VIII, and the Just Energy Transition Partnership (JETP) with International Partners Group (IPG), Vietnam will take important steps to decrease carbon in the energy sector and to increase the share of renewables. The parties acknowledge the importance of energy security and affordable energy costs for the society and the citizens of Vietnam.

A key component of the partnership is strengthening capacity in long-term energy planning, by publishing Energy Outlook reports. The reports present the future Vietnamese energy system towards 2050 through various scenarios. The scenarios demonstrate how Vietnam can reach peak-emissions and net-zero objectives by raising Nationally Determined Contribution ambitions, including recommendations on large-scale renewable energy integration and energy efficiency savings.

Both sides applaud the successful outcomes of the Energy Partnership Phase II and agree to continue their Energy Partnership Programme cooperation, which will enhance collaboration in areas such as energy system modelling, decarbonisation scenarios, offshore wind development, and integration of renewables.

The enhanced collaboration in these areas will support Vietnam in gradually taking the next policy steps to realise its targets of peak emission, net-zero, and reduced reliance on fossil fuels – not least coal.

The parties agree to continue the collaboration in developing and publishing the Vietnam Energy Outlook Report, which can serve as an important technical basis for policy design to underpin the targets of Vietnam to reach net-zero in 2050 and phase down coal.

Denmark shares experience in establishing and operating carbon markets, supporting access to knowledge related to biomass-based carbon capture and storage (CCS) if considered relevant according to recommendations in the Vietnam Energy Outlook Reports to contribute to the goal of net-zero emission by 2050.

The parties agree to continue to share expertise in designing and implementing policies and technical tools necessary to make the green energy transition possible. To this end, technical expert consultations, policy dialogues, and exchange visits of delegations at appropriate levels will be held.

At Vietnam's Government Office

Trade and business collaboration

The EU - Vietnam Free Trade Agreement (EVFTA) constitutes an important landmark in trade relations between Vietnam and EU Member States and provides a sound basis for enhanced trade in green goods and services between the parties. The trade and sustainable development chapter of the EVFTA also paves the way for closer cooperation on environmental issues related to trade and investment.

The parties will seek to strengthen Vietnamese companies’ capacity and deepen their involvement in contributing to sustainable value chains. Denmark will support Danish businesses in their effort to source and produce more sustainably in Vietnam including attention to labour rights and conditions.

Both sides aim to further strengthen economic, trade, and investment cooperation, particularly in areas of onshore and offshore wind energy, energy efficiency solutions, food, agriculture, water, wastewater management, maritime solutions, and other technologies and sectors of mutual interest.

Vietnam and Denmark wish to further strengthen government-to-government dialogue on maritime issues including green shipping and green maritime solutions and to maintain the ongoing dialogue and cooperation on reducing greenhouse gas emissions from the maritime sector. This can include meetings and webinars involving Danish and Vietnamese companies and other actors in the maritime sector to promote the involvement of the business sector.

Urbanisation, industrialisation, strong economic growth, and climate change are making significant impacts on Vietnam’s environment. Danish companies, with decades of experience in providing solutions with a focus on sustainable and green technologies and infrastructure, are keen to develop further cooperation with Vietnamese partners in the areas of urban development, food and agriculture, health, and life science.

To promote and enhance cooperation on technological development, Danish governmental institutions can provide optimal framework conditions to help businesses develop in this regard.

Furthermore, both parties wish to enhance partnership in urban development and sustainable and liveable cities, food and agriculture, health and life science, in support of sustainable development goals and green transition.

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