What is your assessment of the demand for investment in green infrastructure in Vietnam?

Vietnam has significant demand for investment in green infrastructure, driven by its commitment to sustainable development and the challenges posed by climate change. The government’s focus on achieving carbon neutrality by 2050, along with its growth in renewable energy sectors like solar and wind, presents key opportunities. Rapid urbanisation also requires sustainable solutions for transportation, energy efficiency, and waste management.

The growing interest in green financing, including green bonds, aligns with the European Investment Bank’s (EIB) role in supporting large-scale projects. With international collaboration and Vietnam’s active participation in climate agreements, there is strong potential for impactful green infrastructure investments in the country.

Nicola Beer, vice president of the European Investment Bank

An agreement between the EIB, which is the financing arm of the European Union, and the State Bank of Vietnam (SBV) was signed during your visit to Vietnam more than a week ago. How important is it for green infrastructure development?

During our visit to Hanoi, we deepened cooperation with the SBV to strengthen its green finance system through technical assistance under the Greening Financial Systems programme. Backed by the German government, this support will help the SBV align with global standards, develop sustainable finance policies, and mobilise investment for green infrastructure.

Another important discussion took place with Deputy Minister of Finance Nguyen Duc Chi, where we spoke about how to accelerate our €500 million ($544 million) framework loan under an MoU we signed with the Ministry of Finance. This financing is available to the country and could be a crucial tool to support Vietnam’s energy transition and Just Energy Transition Partnership implementation, and we are committed to working together to ensure its effective deployment.

What opportunities do you see for investors in Vietnam’s green infrastructure development?

Vietnam’s green infrastructure development presents substantial opportunities for investors, particularly in sectors such as renewable energy, sustainable urbanisation, and climate-resilient infrastructure.

There is a growing demand for investments in clean energy solutions like solar, wind, and energy storage. Additionally, opportunities lie in the development of green buildings, sustainable transport systems, and waste management solutions.

As Vietnam strengthens its commitment to sustainability and green financing, investors can play a key role in advancing the country’s transition to a more sustainable and low-carbon economy. The support from both the government and international partners further enhances the attractiveness of these opportunities.

These efforts will position Vietnam in the green infrastructure space, fostering greater economic resilience and contributing to global environmental goals.

What are your recommendations for improving the effectiveness of EIB capital in Vietnam?

To maximise the impact of EIB capital in Vietnam, it is crucial to prioritise high-impact, sustainable projects aligned with the country’s development goals. Efficient project preparation, close collaboration with the Vietnamese government, and strong green finance systems are essential for accelerating deployment and attracting further investments.

By focusing on energy security, climate resilience, and green infrastructure, we can ensure that EIB financing drives real, lasting and affordable change for the people of Vietnam and supports the country’s green transition.

Vietnam Electric Cable Corporation (CADIVI), a leading brand in Vietnam’s electrical wire and cable market, has officially introduced a new line of eco-friendly products, featuring lead-free (LF) insulation and low smoke halogen-free (LSHF) materials.

Backed by significant investment in research and the application of advanced technology, the new LF and LSHF wire lines aim to reduce environmental pollution, enhance user safety, and minimise toxic smoke emissions in case of fire.

The initiative marks a notable step in improving electrical safety and supporting the protection of the community’s living environment.

Ho Quang Nhan, CEO of CADIVI, expects that the introduction of LF and LSHF electric cables will bring optimal solutions for green and eco-friendly buildings.

Ho Quang Nhan, CEO of CADIVI, expressed confidence that the introduction of these products will offer optimal solutions for green and eco-conscious construction projects. Both product lines are engineered with a focus on durability, safety, energy efficiency, and resource conservation—key criteria in sustainable building development.

For years, CADIVI has maintained strong investment in research and development, adopting cutting-edge technologies to create high-performance products that meet the growing demands of both domestic and international markets. This emphasis on innovation also strengthens the company’s competitive edge and supports Vietnam’s broader green economic transition.

“The green transition is not just a global trend—it’s a business strategy,” said Nhan. “While Việt Nam has support mechanisms such as LEED and EDGE certifications to encourage green development, enterprises must proactively invest in emissions-reducing technologies, including solar energy, natural ventilation systems, and low-carbon materials.”

According to Nhan, CADIVI promotes the use of non-toxic materials and modern production processes to reduce emissions. The company has also deployed rooftop solar systems at its factories and continues to optimise production to reduce material waste and improve operational efficiency.

“We are not only contributing to the development of green buildings but also actively participating in Việt Nam’s goal of net-zero emissions by 2050,” he said.

CADIVI is a member of Gelex Electric JSC, under Gelex Group. As part of its development strategy, Gelex also places strong emphasis on R&D to drive sustainable product innovation and expand international cooperation through technology transfer.

Nguyen Trong Hien, chairman of Gelex Group, noted that the group encourages member companies to allocate up to 2 per cent of annual revenue to research and development in the electrical equipment sector, underscoring its commitment to fostering high-quality human resources and technological advancement.

Puratos Grand-Place Vietnam (PGPV), a joint venture between Belgium’s confectionery manufacturers Puratos Group and Grand-Place Holding, is Vietnam’s largest chocolate manufacturer. It is now boosting exports to Europe, the United States, Japan, and South Korea. Having been operating in Vietnam since 1994, PGPV currently has two factories – one producing chocolate and powder in the southern province of Binh Duong, and another processing cocoa mass in the Mekong Delta province of Ben Tre.

“Our factories have a designed capacity of 10,000 tonnes. However, they cannot operate at full capacity due to shortages of bean supply. Thus we have to import about 4,000-5,000 tonnes a year from the Philippines, Papua New Guinea, Uganda, Congo, Ghana, and Ivory Coast. We are purchasing more than 60 per cent of Vietnam’s total cocoa output on an annual basis,” Justin Jacquat, regional cocoa manager of Puratos, told VIR. “More than 70 per cent of chocolate in Vietnam used materials provided by PGPV.”

Partner networks offer fillip for cocoa industry, Photo: Thanh Tung

Vietnam’s total cocoa area is estimated to stand at about 2,700 hectares, with an average annual output of as many as 3,000 tonnes.

Over the past few years, PGPV has launched its own Cacao-Trace initiative aimed to purchase cocoa beans from localities. “We are boosting cooperation with many farmers’ households, cooperatives, and domestic companies to purchase high-quality beans and expand cocoa plantation areas in the provinces of Dak Lak, Dak Nong, Phu Yen, Binh Thuan, among others,” Jacquat said.

Cacao-Trace is a sustainable chocolate sourcing programme. It not only deals with the challenges in the industry but is an ‘expert’ in supporting the development of the farmers’ process, from seeding to taking care and harvesting the cocoa beans, in a sustainable way from.

PGPV is cooperating with more than 2,000 cocoa farmers. Previously, farmers harvested 500-600kg of bean per ha. However, under the company’s assistance, the figure has soared to an average 1.5 tonnes per ha within Cacao-Trace communities.

Other companies such as Marou, Trong Duc, BariaChocolate, CIC, and Nam Truong Son are also engaging actively in the Vietnamese cocoa industry.

Purchasing about one-quarter of Vietnam’s total cocoa output annually, Ho Chi Minh City-based Marou Chocolate currently has 19 stores nationwide, largely found in Vietnam’s biggest cities. It seeks to open stores in Singapore, France, and Dubai, and many of its products are organically produced. “We are continually developing a large network of local partners to directly purchase cocoa beans to produce future organic products. They include cooperatives and individual fermenters throughout 10 provinces,” said Vincent Marou, CEO of Marou Chocolate.

In 2024, the company’s total revenue grew by 50 per cent, which is also expected for this year.

High prices are encouraging agriculture companies to invest in the Vietnamese cocoa industry, which is full of potential. Marou’s demand for cocoa and chocolate continues to rise strongly, at 20-30 per cent a year. Cocoa prices have soared by 150 per cent since early 2024 and chocolate prices have followed suit.

Pham Huu Thoi, director of Nhat Thong Dak Lak Agriculture Co., Ltd., has added cocoa to its multisectoral investment and business portfolio since 2020. Thoi has invested about $6 million into developing a high-tech organic farm covering 300ha in Buon Ho town in Dak Lak, including 270ha of cocoa. One tonne of cocoa can be sold at about $8,000.

“Cocoa is easy to plant, and boasts great potential for development, while prices are increasing, currently at $9.80-10.60 per kilogramme in the Central Highlands province of Dak Lak,” Thoi told VIR. “We produce organic cocoa, focusing on natural farming practices.”

It is expected that Nhat Thong will begin exports of cocoa next month.

The EU has been supporting companies like PGPV, Nhat Thong, and cooperatives via a project worth $2.1 million, in producing cocoa for a circular economy. Beneficiaries include 3,500 cocoa producers, 500 employees on cocoa farms, and other cocoa-related businesses. The initiative covers production in the delta provinces of Ben Tre and Tien Giang, and in upland provinces where cocoa production remains strong.

“The project has helped farmers and companies improve cocoa quality and production process towards the circular economy, meeting stringent standards and regulations of the EU and the wider world,” said Julien Guerrier, Ambassador of the European Union to Vietnam. “Previously only beans were used, but now, cocoa pods can be used for making animal feed, organic fertiliser, and even plywood.”

The total funding of the Team Europe support in climate resilience, low carbon development and circular economy in Vietnam, including in the energy sector, currently stand at about €2.4 billion ($2.62 billion).