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Germany grants loan worth 200 mln euros for Vietnam’s energy sector

Germany has offered a loan worth 200 million euros for Vietnam’s energy sector during a recent visit by Dr. Friedrich Kitschelt, State Secretary in the Federal Ministry for Economic Cooperation and Development of Germany, to Vietnam.

Germany has offered a loan worth 200 million euros for Vietnam’s energy sector during a recent visit by Dr. Friedrich Kitschelt, State Secretary in the Federal Ministry for Economic Cooperation and Development of Germany, to Vietnam.
Germany has offered a loan worth 200 million euros for Vietnam’s energy sector during a recent visit by Dr. Friedrich Kitschelt, State Secretary in the Federal Ministry for Economic Cooperation and Development of Germany, to Vietnam.

Dr. Kitschelt’s working trip, which lasted from November 28 to December 3, focused on the three following areas: vocational training, energy and environment.

During the visit, the Federal Ministry of Economic Cooperation and Development of Germany granted the preferential loan package aimed at modernizing the network transmission and distribution of electricity in medium and small cities in Vietnam.

“Efficient energy use is the focus area in green growth strategy of Vietnam. We believe that improved power grids applying new technologies will reduce energy consumption and reduce CO2 emissions during transmission, while ensuring the supply of electricity at low cost,” said Dr. Kitschelt.

“Thereby, Germany has contributed significantly to securing supplies as well as regional economic development and environmental protection for Vietnam,” he added.

During the six-day visit, State Secretary Kitschelt also witnessed the signing of a loan agreement worth 100 million euros with the Ministry of Finance of Vietnam for the improvement of the power grids in the capital city of Hanoi.

In addition, State Secretary Kitschelt also joined high-level talks with the Minister of Planning and Investment and the Vice Minister of Finance about policies to promote the private sector, as well as the framework conditions for economic development in Vietnam in the future in accordance with the National Strategy for Green Growth.

State Secretary Kitschelt also visited a Germany – Vietnam vocational training project and lauded the close cooperation between vocational training centers and German Bosch Group.

“During the vocational training, young students participating in the enterprise will accumulate experiences and best practices. As a result not only the participants, but also the businesses that invest in the training process will benefit from the training process, because after graduation they can start work right away,” said the German State Secretary.

During the high-level talks, the German State Secretary also proposed that the government of Vietnam create conditions for local enterprises to adapt this training model.