Joint Statement on a Green Strategic Partnership between Viet Nam and Denmark

His Excellency, Mr. Pham Minh Chinh, Prime Minister of the Socialist Republic of Viet Nam and Her Excellency, Ms. Mette Frederiksen, Prime Minister of the Kingdom of Denmark co-chaired a Virtual Ceremony on November 1, 2023 to jointly declare the establishment of a Green Strategic Partnership between the Government of the Socialist Republic of Viet Nam and the Government of Denmark (hereinafter referred to as "the parties").

In addition, the parties are committed to working together towards a strong, transparent international system based on international law with respect for human rights.

Within the framework of the celebration of the 52^nd anniversary of the establishment of bilateral relations between the Parties – and in recognition of the strong and close cooperation between the two countries over the last 52 years – the Parties have agreed to establish a Green Strategic Partnership.

Acknowledging the close ties established between the Parties in multiple areas of bilateral relations and global matters of interest to the Parties, in particular relating to sustainable development, climate change and green transition – the Green Strategic Partnership will build on and supplement the strong existing Joint Statement on the Comprehensive Partnership between the Government of the Socialist Republic of Viet Nam and the Government of Denmark established on 19 September 2013 and complement the Joint Declaration between the Government of the Socialist Republic of Viet Nam and the Government of Denmark on the Establishment of the Strategic Partnership in the areas of climate change, environment, energy and green growth established on 28 November 2011.

The Parties are long-standing partners in a vast number of areas. The Green Strategic Partnership will support the materialization of the Parties' endeavours to promote a green transition, further global ambition on climate, environment and nature, as well as a socially just green transition that creates green jobs and avoids increasing inequality.

The Green Strategic Partnership is a mutually beneficial arrangement to advance political cooperation, expand economic relations relevant to green growth, create jobs and strengthen cooperation on addressing global challenges and solutions on green transition and climate change; with focus on an ambitious implementation of the Paris Agreement and the UN Sustainable Development Goals.

Need for green cooperation in light of COVID-19

The Parties believe that the COVID-19 pandemic has made close cooperation between Parties on the climate and green agenda even more important to support a just, inclusive, sustainable and green recovery.

Strengthened Green Dialogue

The Parties underscore the importance of the green agenda and agree to promote the engagement, participation and collaboration of different stakeholders including ministries, cities, provinces and other relevant stakeholders in making joint efforts in implementing the green agenda in Viet Nam and Denmark.

The Parties agree to intensify their high-level policy dialogue around short-, medium- and long-term climate objectives. They also agree to enhance knowledge and best practices exchange, experience sharing, enhance capacity building, technology transfer and promote specific activities and initiatives on sustainable development, climate, green transition, environment protection, promotion of technological development and accompanying intellectual property, food and agriculture, health and life science, statistics, urban development, circular economy and green growth in relevant forums.

Climate, Environment and Energy

The Parties acknowledge and welcome Viet Nam's political determination in tackling the climate crisis reflected in the commitment on carbon net zero emissions in 2050 made by Prime Minister Pham Minh Chinh at COP26 with the support of the international community, along with the country participation in coalitions to reduce greenhouse gas emissions including the methane pledge and joint pledge to phase down coal.

The Parties will boost their cooperation in greenhouse gas emission reductions to support Viet Nam to develop a climate-resilient and low carbon economy and achieve its net zero target in 2050 and promote the development of the circular economy. 

With the approved Energy Master Plan, the PDP8 and the Just Energy Transition Partnership (JETP) with International Partners Group (IPG), Viet Nam will take important steps to decrease carbon in the energy sector and to increase the share of renewables. The Parties acknowledge the importance of energy security and affordable energy cost for the society and the citizens of Viet Nam.

Since 2013, the Parties have cooperated on strengthening Viet Nam's transition to a low carbon economy. A key component of the partnership is strengthening the capacity in the field of long-term energy planning, by publishing Energy Outlook reports. The reports present the future Vietnamese energy system towards 2050 through various scenarios. The scenarios demonstrate how Viet Nam can reach peak-emissions and net zero objectives by raised Nationally Determined Contribution (NDC) ambitions, including recommendations on large-scale renewable energy integration and energy efficiency savings.

The Parties applaud the successful outcomes of the Energy Partnership Phase II and agree to continue their Energy Partnership Programme cooperation, which will enhance collaboration in areas such as energy system modelling, decarbonisation scenarios, offshore wind development, expansion and integration of renewables, energy efficiency standards and technologies. The enhanced collaboration in these areas will support Viet Nam in gradually taking the next policy steps to realize its targets of peak-emission, net zero and reduced reliance on fossil fuels – not least coal.

The Parties agree to continue the collaboration in developing and publishing the Viet Nam Energy Outlook Report, which can serve as important technical basis for policy design to underpin the targets of Viet Nam to reach net zero in 2050 and phase down coal.

Denmark shares experience in establishing and operating carbon markets, supporting access to knowledge related to biomass-based carbon capture and storage (CCS) if considered relevant according to recommendations in the Viet Nam Energy Outlook Reports to contribute to the goal of net zero emission by 2050.

The Parties agree to continue to share expertise in designing and implementing policies and technical tools necessary to make the green energy transition possible. To this end, technical expert consultations, policy dialogues and exchange visits of delegations at appropriate levels will be held.

Trade and Business Collaboration

The Parties acknowledge the improved conditions for foreign direct investment in Viet Nam with the country ranking among the world's top 20 host economies for foreign direct investment in 2020. The EU - Viet Nam Free Trade Agreement (EVFTA) constitutes an important landmark in trade relations between Viet Nam and EU Member States and provides a sound basis for enhanced trade in green goods and services between the Parties. The trade and sustainable development chapter of the EVFTA also paves the way for closer cooperation on environmental issues related to trade and investment.

The Parties will seek to strengthen Vietnamese companies' capacity and deepen their involvement in contributing to sustainable value chains. Denmark will support Danish businesses in their effort to source and produce more sustainably in Viet Nam including attention to labour rights and conditions.

The Parties aim to futher strengthen economic, trade and investment cooperation in particular in areas of onshore and offshore wind energy, energy efficiency solutions, food, agriculture, water, waste water management, maritime solutions and other technologies and sectors of mutual interest, in order to support the green transition of Viet Nam in multiple sectors. Trade promotions and visits are important instruments.

The Parties wish to further strengthen the government-to-government dialogue on maritime issues including green shipping and green maritime solutions and to maintain the ongoing dialogue and cooperation on reducing greenhouse gas emissions from the maritime sector. The mode of cooperation can include meetings and webinars involving Danish and Vietnamese companies and other actors in the maritime sector to promote involvement of the business sector.

Urbanization, industrialization, strong economic growth, and climate change are making significant impacts on Viet Nam's environment. Danish companies, with decades of experience in providing solutions with focus on sustainable and green technologies and infrastructure are keen to develop further cooperation with Vietnamese partners e.g in the areas of urban development, food and agriculture, health and life science. In order to promote and enhance the cooperation on technological development, Danish governmental institutions can provide optimal framework conditions to help businesses develop in this regard.

Urban development and sustainable and liveable cities

The Parties wish to enhance the cooperation and partnership between experts and institutions of the two countries in the area of urban development and sustainable and liveable cities. The mode of cooperation can include seminars, exhibitions of good practice and projects and where and when possible, study tours, etc. to promote exchange of knowledge and experience and enhance capacity building.

Food and agriculture and aquaculture

The Parties aim to enhance the collaboration on food, agriculture and aquaculture with a main focus on sustainable and resource efficient food and feed production and a sustainable aquaculture production, including technologies and solutions for inland and marine aquaculture production. The Parties agree to share experience and expertise on environmental aspects of agricultural production, including sustainable resource management and reduction of production inputs.

The Parties agree to extend the collaboration on future farming for a more profitable, efficient, safe and environmentally friendly agricultural, aquaculture production. The Parties will explore the possibility of partnerships within research and technical support in relation to future farming.

The Parties endorse the idea of a public-private partnership on food waste and food loss in order to support a more sustainable food production and a resource efficient supply chain.

Health and Life Science

A decrease in emissions of pollutants, such as heavy metals or particulate matter, will lead to an improvement of air quality and the occurrence of illnesses caused by air pollution. The Parties aim to enhance the collaboration in the field of health, and to continue government-to-government cooperation to strengthen primary healthcare in areas of management of prevention, detection and treatment for non-communicable diseases.

National Statistics in Support of Sustainable Development Goals and Green Transition

Adequate statistical data and analysis that comply with international agreed standards and methodologies are needed in order to measure and plan for sustainable development and green transition. The cooperation between the Parties will apply new technologies and methodologies for strengthening statistical data available in Viet Nam, including National Environmental Accounts.

Promoting Green Ambition across Sectors

The Parties will work together to promote green transition and decarbonisation across sectors and supply chains, including logistics and shipping. The Parties will also cooperate on initiatives around a circular economy.

The Parties will strive to develop partnerships between relevant institutions and businesses of the two countries with special focus on green and climate-friendly technologies. They recognize the importance of enhanced regulatory framework conditions to support public and private investments in green energy and infrastructure including access to international finance. To this end, the strengthening of the regulatory apparatus that may stimulate innovation and mutual development of green technologies will be an important aspect. The Parties observe that the framework for intellectual property rights (IPR) is key in order to transform green innovation into economic development and the creation of sustainable jobs.

The Parties acknowledge the Danida Sustainable Infrastructure Finance (DSIF) programme's concessional loans and cash grants as a valuable and important financing tool for improving sustainable infrastructure in Viet Nam, using environmentally friendly and green technologies and expertise.

Both Parties agreed to encourage public-private partnership programs and projects using Danish financing instruments, including the DSIF and the Danish Export and Investment Fund (EIFO), on the basis of compliance with legal regulations and orientations for the supply and use of capital of each Party.

Multilateral cooperation

Furthermore, the Parties underscore that multilateral cooperation is vital in responding to climate challenges and reaching the goals of the Paris Agreement and agree to strengthen cooperation and collaboration in relevant multilateral fora. The Parties welcome initiatives that aim to accelerate climate actions such as Partnering for Green Growth and the Global Goals 2030 (P4G).

Initiatives such as P4G play an important role in accelerating the UN Sustainable Development Goals by bringing together private sector, non-governmental organisations and public authorities in partnerships for green and inclusive growth. As core members of the P4G, the Parties are committed to working with the international community to support such initiatives and endeavor to make good use of opportunities in multilateral finance, including via development banks system, international and regional financial institutions.

Conclusion

The Parties expressed their conviction that a decision to establish a Green Strategic Partnership between the Government of the Socialist Republic of Viet Nam and the Government of Denmark has opened a new chapter in the friendly and cooperative relations between them.

Ambitious goals and concrete actions will be identified within the areas and outlined in the context of the existing Action Plan related to the Joint Statement on the Comprehensive Partnership between the Parties.