JBIC provides $120 million green financing for energy transition in Vietnam

JBIC provides $120 million green financing for energy transition in Vietnam

On April 20, the Japan Bank for International Cooperation signed a general agreement to provide a credit line with BIDV, amounting to up to $200 million, of which JBIC’s portion is $120 million.

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This credit line is intended to finance, through BIDV, the funds necessary for projects related to energy transitions and electricity grids in Vietnam under GREEN operations.

The Vietnamese government announced in 2021 its goal of achieving net-zero emission by 2050 and becoming a high-income country by 2045. By revising the Power Development Plan 8 in April 2025, the government expressed its intention to significantly increase the share of renewable energy in its power generation mix and to expand investment in power transmission lines, as a policy to achieve both economic growth and decarbonisation.

In accordance with the government’s policy, the State Bank of Vietnam has expressed its intention to accelerate providing funds for green finance in the banking sector, while BIDV has committed to becoming net-zero by 2050 and focused on similar initiatives.

Through the credit line, JBIC supports not only efforts made by the government of Vietnam and BIDV to preserve the global environment, but also the procurement of renewable electricity across the supply chains of Japanese companies operating in Vietnam.

In January 2022, the Japanese government proposed the concept of the Asia Zero Emission Community (AZEC), a framework to provide support and cooperation for efforts for energy transition by Asian countries by leveraging the strengths of Japanese companies, such as their technology and expertise. Vietnam is an important partner country under the AZEC framework.

In April 2025, the Japanese government and the Vietnamese government agreed to encourage bilateral cooperation projects for energy transitions under AZEC principles. In November 2025, JBIC signed an MoU with BIDV to support decarbonisation in Vietnam. The credit line is in line with the promotion of bilateral cooperation between the two countries.

As Japan’s policy-based financial institution, JBIC will continue to support global environmental preservation efforts in cooperation with local financial institutions by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.

VIR