The European Investment Bank has agreed a €200 million ($216 million) long-term financing facility with Techcombank to accelerate climate action and environmental sustainability projects across Vietnam.
The agreement, announced during the EU–Vietnam Global Gateway Business and Investment Forum in Hanoi, reflects growing international support for Vietnam’s efforts to transition toward a low-carbon and climate-resilient economy.
Through the facility, Techcombank will expand lending to private sector projects focused on renewable energy, energy efficiency, and sustainable transport infrastructure. By channeling capital through a major domestic financial institution, the financing aims to reach businesses that often struggle to access long-term funding for green initiatives.
The European Investment Bank said the facility is designed to bridge the financing gap for climate-aligned investments, particularly among companies seeking to modernise operations while reducing carbon emissions.
As global demand for sustainable infrastructure rises, partnerships between international development banks and local lenders are increasingly seen as an effective way to mobilise capital at scale.
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Unlocking Private Sector Investment for Climate Projects
A key objective of the financing agreement is to unlock greater private sector participation in Vietnam’s climate transition.
Instead of financing projects directly, the EIB is working through Techcombank to channel funding to companies that are implementing green projects on the ground. This structure significantly expands the reach of climate finance, particularly among small and medium-sized enterprises (SMEs).
Private companies often face challenges accessing long-term capital for renewable energy or efficiency upgrades due to high upfront costs and longer payback periods. By providing a stable financing facility, the EIB enables Techcombank to offer longer tenors and more favourable lending conditions for projects that reduce emissions.
This approach reflects a broader shift in climate finance, where multilateral development banks increasingly work with domestic financial institutions to scale investment.
By leveraging Techcombank’s market presence and local expertise, the partnership is expected to accelerate the deployment of renewable energy systems, efficient technologies and sustainable infrastructure across Vietnam’s economy.
Supporting Vietnam’s Just Energy Transition Partnership
The financing agreement also supports Vietnam’s Just Energy Transition Partnership (JETP), a major international initiative designed to help the country shift away from fossil fuels while maintaining economic growth.
Vietnam signed the partnership in December 2022 with several international partners, including the European Union, the United Kingdom, France, Germany, Italy, Canada, Japan, Norway and Denmark. The United States initially participated but later withdrew from the initiative in early 2025.
The JETP aims to mobilise $15.5 billion in public and private finance to help Vietnam accelerate the transition toward cleaner energy sources and reduce greenhouse gas emissions.
Vietnam has incorporated the partnership’s objectives into its national power development plan, which outlines strategies to rapidly expand renewable energy capacity and reduce dependence on fossil fuels.
Despite strong growth in renewable energy projects in recent years, coal still plays a major role in Vietnam’s electricity system. According to data from the International Energy Agency, coal-fired power accounted for approximately 44.8 percent of Vietnam’s electricity generation in 2023.
Reducing that reliance while meeting rising energy demand will require significant investment in clean energy infrastructure and energy efficiency technologies.
The EIB-Techcombank financing facility is expected to play a role in helping mobilise the private capital required to achieve these goals.
Advisory Support to Strengthen Climate Governance
Beyond financing, the agreement also includes technical advisory support aimed at strengthening Techcombank’s climate governance and risk management capabilities.
Through its advisory division, the European Investment Bank will work with the Vietnamese lender to improve climate-related disclosures, risk assessment frameworks and sustainable finance practices.
The support will be delivered through the Greening Financial Systems programme, which is funded by Germany and Luxembourg.
The initiative reflects growing recognition that financial institutions play a critical role in addressing climate change—not only through funding projects but also through integrating climate risks into lending and investment decisions.
By strengthening its climate governance framework, Techcombank will be better positioned to assess the environmental impact of its loan portfolio and manage potential risks associated with climate change.
This combination of capital investment and technical assistance is increasingly becoming a standard model in sustainable finance, helping banks develop long-term capacity to support green economic transformation.
EIB Highlights Benefits for Vietnam’s Economy
Speaking about the agreement, Nicola Beer, Vice-President of the European Investment Bank responsible for operations in Vietnam, highlighted the broader economic and environmental benefits of the partnership.
Nicola Beer said Vietnam has set ambitious targets for its energy transition and sustainable development, and international partnerships will play an important role in supporting those efforts.
She noted that the financing will support investments across multiple sectors, including renewable energy, sustainable transport and green finance, while also expanding opportunities for private businesses and SMEs.
According to Beer, the initiative will generate tangible benefits for citizens, including cleaner air, improved energy efficiency, greater access to sustainable energy and new employment opportunities.
She also emphasised that the cooperation reflects the European Union’s Global Gateway strategy, which aims to mobilise investment in sustainable infrastructure projects worldwide.
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EU Global Gateway Strategy in Action
The agreement forms part of the broader Global Gateway initiative, the European Union’s flagship programme designed to mobilise investment in infrastructure, digital connectivity and clean energy projects around the world.
Representing the European Commission at the forum, Jozef Síkela said the partnership demonstrates how international cooperation can deliver practical results for economic development and environmental protection.
He noted that the investment will support Vietnamese companies working on renewable energy projects, energy efficiency improvements and modern transport systems.
According to Síkela, initiatives like the EIB-Techcombank agreement help create jobs, stimulate economic growth and strengthen energy systems while reducing pollution.
The Global Gateway programme has become a key tool for the EU to promote sustainable development partnerships, particularly in emerging markets that require large-scale infrastructure investment.
Techcombank Expands Its Green Lending Strategy
For Techcombank, the partnership represents a major step forward in its strategy to become a leader in sustainable finance within Vietnam’s banking sector.
The bank has already been expanding its green lending activities in recent years. In 2024 alone, Techcombank reported 16.4 trillion Vietnamese dong (approximately $622 million) in green lending.
According to Nguyen Thu Lan, Vice Chairwoman of Techcombank’s board, the partnership with the European Investment Bank reflects confidence in the bank’s financial strength and long-term strategy.
Nguyen Thu Lan said integrating climate finance into the bank’s strategy reinforces its commitment to responsible growth that benefits the economy, society and the environment.
She added that the partnership will help the bank expand its support for businesses seeking to invest in sustainable technologies and infrastructure.
Strategic Partnership Strengthens Sustainable Finance Capabilities
Techcombank executives also emphasised that the partnership brings more than just capital.
According to Prasenjit Chakravarti, the bank’s Chief Corporate Strategy and Transformation Officer, the relationship with the EIB provides access to long-duration capital and international ESG expertise.
Prasenjit Chakravarti said the collaboration will help Techcombank better serve its clients while strengthening its position as a leader in sustainable finance in Vietnam.
By combining financing with advisory support, the agreement is expected to help the bank develop world-class environmental, social and governance (ESG) practices.
This will be increasingly important as global investors and regulators place greater emphasis on climate risk management and sustainability reporting.
Multilateral Development Banks Take a Bigger Climate Role
The EIB-Techcombank agreement also highlights the growing role of multilateral development banks (MDBs) in addressing climate change.
MDBs such as the European Investment Bank have become increasingly important sources of climate finance, particularly as some traditional international aid budgets face pressure.
Over the past 18 months, several major donors have announced reductions in development funding, raising concerns about how climate projects in emerging economies will be financed.
In response, governments and advocacy groups have called on MDBs to expand their lending and leverage private sector investment.
Because of their financial strength and ability to attract co-financing from investors, MDBs are often able to mobilise significantly larger volumes of capital than public funding alone.
The EIB’s partnership with Techcombank demonstrates how development banks can use local financial institutions as multipliers for climate investment.
Outlook: Building Momentum for Vietnam’s Low-Carbon Economy
Vietnam is widely viewed as one of Southeast Asia’s fastest-growing economies, with rising energy demand driven by industrial expansion and urbanisation.
Meeting that demand while reducing emissions will require a massive shift toward renewable energy, energy efficiency and sustainable infrastructure.
The €200 million financing facility between the European Investment Bank and Techcombank represents an important step toward mobilising the capital needed for that transformation.
By supporting private sector investment and strengthening sustainable finance practices within the banking system, the initiative could help accelerate Vietnam’s progress toward its 2050 carbon-neutrality goal.
As climate finance continues to evolve, partnerships like this one demonstrate how international development banks, local financial institutions and private companies can work together to build a cleaner and more resilient energy future.
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