Vietnam, Norway to deepen green investment, energy ties after EFTA deal

Vietnam, Norway to deepen green investment, energy ties after EFTA deal

Vietnam and Norway are expected to deepen cooperation in green investment, renewable energy, and carbon markets following the conclusion of the Vietnam-European Free Trade Association Free Trade Agreement.

Deputy Minister of Finance Tran Quoc Phuong and Norwegian Ambassador to Vietnam Hilde Solbakken. Photo: Duc Minh

Deputy Minister of Finance Tran Quoc Phuong met with outgoing Norwegian Ambassador Hilde Solbakken in Hanoi on July 10, as she concluded her four-year diplomatic mission in Vietnam.

Deputy Minister Phuong congratulated Ambassador Solbakken on completing her tenure and commended her contributions to strengthening bilateral relations, particularly in economic, financial, trade and sustainable development cooperation, as the two countries prepare to celebrate the 55th anniversary of diplomatic relations in November.

He noted that Vietnam-Norway ties have continued to deepen over more than five decades, with Norway making significant contributions to Vietnam's socioeconomic development through both government and private-sector cooperation.

Ambassador Solbakken said she was honoured to have contributed to further strengthening bilateral relations during her term, and congratulated Vietnam on its recent recognition by the World Bank as an upper-middle-income economy.

"The relationship between Vietnam and Norway has undergone a historic transformation, evolving from a traditional development assistance partnership into an equal partnership built on shared interests, including maritime development, renewable energy and environmental protection," she said.

One of the key developments highlighted during the meeting was the successful conclusion of negotiations for the Vietnam-European Free Trade Association (EFTA) Free Trade Agreement. Ambassador Solbakken said that once the agreement is signed and ratified, it is expected to create fresh momentum for trade and investment between Vietnam and the four EFTA member states, including Norway.

She noted that Norwegian companies operating in Vietnam in sectors such as the circular economy, offshore aquaculture and maritime industries would benefit from a more favourable business environment under the agreement.

Norway also reaffirmed its commitment to supporting Vietnam's energy transition through the Just Energy Transition Partnership. As part of that effort, Norfund, the Norwegian Investment Fund for Developing Countries, has established a representative office in Vietnam and is preparing to announce a new strategic investment before the end of this year. The planned investment is expected to focus on sectors including renewable energy, the circular economy and financial services.

Photo: Duc Minh

Deputy Minister Phuong welcomed the forthcoming investment, describing it as timely as Vietnam updates its Power Development Plan VIII to significantly expand clean energy capacity, particularly offshore wind power, where Norway has extensive expertise and technological advantages. He expressed hope that more Norwegian companies would seize emerging investment opportunities in the sector.

Beyond renewable energy, both sides identified carbon markets as another promising area for future cooperation. Ambassador Solbakken said Norway is interested in working with Vietnam under Article 6 of the Paris Agreement to develop carbon credit projects, creating a market-based financing mechanism to complement traditional development assistance.

She noted that multilateral institutions, including the Green Climate Fund, the Asian Development Bank and the Global Green Growth Institute, could play an important role in mobilising investment for emissions reduction projects in renewable energy and waste management. Norway also expressed interest in purchasing carbon credits generated from Vietnam's extensive forest resources.

Concluding the meeting, Deputy Minister Phuong thanked Ambassador Solbakken for her contributions to strengthening Vietnam-Norway relations and wished her continued success in her future assignments. He expressed confidence that she would continue to serve as a bridge between the two countries in the years ahead.

VIR