United States Assistant Secretary for Energy Resources, Francis R. Fannon and Vietnamese Vice Minister Dang Hoang An of the Ministry of Industry and Trade signed a Memorandum of Understanding (MOU) memorializing a United States-Vietnam Comprehensive Partnership on Energy, September 30, in Washington, DC. Through this partnership, the United States and Vietnam have increased cooperation on energy through more frequent and direct correspondence between U.S. and Vietnamese energy officials at the policy and technical levels.
The MOU deepens U.S. and Vietnamese energy cooperation by establishing a framework to advance shared energy principles for the Indo-Pacific. Those principles seek to strengthen energy security; create rules-based, open and transparent energy markets; improve free, fair, and reciprocal energy trade relationships; and expand access to affordable and reliable energy. These values undergird the State Department’s interagency initiative Asia EDGE (Enhancing Development and Growth through Energy).
Under Asia EDGE, the Bureau of Energy Resources looks forward to leading the United States’ efforts to strengthen common energy policies with Vietnam in the Indo-Pacific and build secure, competitive, and resilient energy markets in Vietnam.
For further information, contact Donald Kilburg, Spokesperson for the Bureau of Energy Resources, at KilburgDF@america.gov or visit http://www.state.gov/e/enr. Additional information is available on Twitter at @EnergyAtState.
Vietnam, U.S. establish comprehensive energy cooperation partnership
Vietnam and the U.S. have set up a comprehensive energy cooperation partnership under a memorandum of understanding (MoU) signed in Washington on September 30.
The document was inked by representatives of the Vietnamese Ministry of Industry and Trade (MoIT) and the U.S. Department of State during a working trip to the U.S. from September 30 to October 2 by a MoIT delegation.
The MoU is an important milestone in energy collaboration between the two countries, opening up a new page of more intensive and comprehensive cooperation.
The document covers various cooperation areas in the energy sector, ranging from energy security, energy market development and energy transformation to relevant regulations and policies, energy management and energy technology and infrastructure, including the role of public-private cooperation.
It establishes a clear collaboration framework and mechanism, thus facilitating specific partnerships between Vietnamese and U.S. firms, towards the goal of sustainable energy development in Vietnam.
At the signing ceremony
Both sides hoped that the document will create the foundation for the building of cooperation roadmaps in specific energy sectors.
In an interview granted to the Vietnam News Agency (VNA), MoIT Minister Tran Tuan Anh highlighted the significance of the MoU as Vietnam needs to advance the domestic energy sector to fuel its fast-growing economy.
Vietnam, therefore, would be a major market for U.S. investors, he said, noting that the Southeast Asian country considers the U.S. an important partner not only because of the growing bilateral trade ties but also because of the U.S.’s cutting-edge and environmentally-friendly technologies in energy and liquefied gas in particular.
Anh further explained that Vietnam is an energy importer and greatly relies on imported liquefied gas to ensure its energy security.
The signing of the MoU reflects joint efforts in outlining common goals and basic solutions to expand and deepen the mutually-beneficial cooperation between the two states, he said, adding that the document will create the most favorable conditions for businesses of both sides to exploit opportunities in the respective markets.
Francis R. Fannon, Assistant Secretary for the Bureau of Energy Resources at the U.S. Department of State, said the MoU has created a clear and strong relationship.
The U.S. regards this as the first step and looks forwards to the expansion of more cooperation areas in the future, he said.
According to Fannon, the U.S. has programs aiming to help foreign governments, including Vietnam, reach energy ambitions and people have many options on clean energy.
Such programs have opened up opportunities for U.S. private enterprises and improved their confidence in investing in Vietnam, he said.
Following the signing ceremony, Anh handed over a document of the MoIT to the U.S. side, announcing that Vietnamese Prime Minister Nguyen Xuan Phuc has agreed to assign AES Corporation to be the major investor of the USD 5 billion Son My 2 Gas Power Plant under a BOT contract. Once operational, the plant will need to import nearly USD 2 billion worth of LNG from the U.S. each year.