Vietnam and Australia Sign Memorandum of Understanding to Develop a Competitive Electricity Market

On April 17, 2024, the Vietnam Electricity Regulatory Authority (ERAV) and the Australian Embassy in Vietnam signed a Memorandum of Understanding (MoU) to support the development of a competitive electricity market.

This event marks an important step forward in the cooperation between the two countries, especially after Vietnam and Australia upgraded their relationship to a Comprehensive Strategic Partnership in March 2024, with a focus on climate, energy, and the environment.

The Memorandum of Understanding focuses on sharing experiences and promoting collaborative activities to develop a competitive electricity market, particularly in the context of integrating renewable energy. Key areas of cooperation include:

• Developing a competitive retail electricity market.

• Proposing a legal framework and mechanisms for regulating transmission and distribution in the competitive retail market.

• Integrating variable renewable energy (VRE) sources into the electricity system and market.

• Implementing demand response programs, capacity building, and training.

Deputy Minister of Industry and Trade, Nguyễn Sinh Nhật Tân, emphasized that developing a competitive electricity market along with an appropriate legal framework will attract private investment, contributing to achieving Vietnam's renewable energy goals.

Vietnam is continuously improving the investment environment and developing the electricity market to increase healthy competition, offering many attractive opportunities for international investors. Australian businesses can take advantage of this opportunity to invest in the energy sector in Vietnam, contributing to strengthening bilateral relations and promoting sustainable development for both countries.