This initiative is supported by a EUR2 million grant from the European Union (EU) alongside a EUR74.7 million subsidized loan from the French Development Agency (AFD). It represents EU’s first technical assistance program in Vietnam’s hydropower sector, marking a key milestone in Team Europe’s sustainable infrastructure cooperation strategy.

A groundbreaking initiative for Vietnam’s energy transition

Launched in June 2021, the Ialy hydropower plant extension project adding two 180 MW generating units bringing its total installed capacity to 1,080 MW, by. This expansion is expected to reduce greenhouse gas emissions by 105,000 tCO₂eq per year, contributing significantly to Vietnam’s clean energy ambition.

The technical assistance components in the project were designed to support EVN in aligning its practices with international HSE and O&M standards. When applied at national scale by EVN, these new standards will help reduce accidents and pollution while increasing the efficiency of waste management and hydropower plant operation and maintenance. Moreover, they are prerequisites for EVN to attract further financial support from International Development Finance Institutions.

Improvement of HSE practices in line with international standards

The HSE support has helped EVN enhance its health and safety culture and improve evironmental safeguards.

Over the course of the implementation, 11 missions were carried out by a Panel of Experts, composed of French and Vietnamese experts. These missions monitored compliance with international HSE standards, offering real-time feedback and corrective measures that helped EVN continuously improve its practices. As a result, the Ialy HPP Extension is now a reference site for HSE standard implementation within EVN hydropower projects.

This support helped also EVN implement a dedicated HSE action plan for the Ialy Extension Hydropower Plant, including improvements in hazardous material storage, introduction of emergency response protocols, and training in the proper use of Personal Protective Equipment Community engagement was also enhanced through the creation of grievance mechanisms and awareness programs, strengthening local acceptance of the project.

Strengthening operational performance through smart maintenance

The second key support of the Technical Assistance project focused on O&M processes, addressing the critical need for efficient and sustainable plant operation. This support involved detailed O&M audits at both the Ialy and Se San hydropower plants. These assessments identified strengths, weaknesses, and areas for improvement, leading to ten specific recommendations aligned with international best practices.

The O&M component then focused on scaling up these processes at Ialy 2 Hydropower Plant and refining the tools through hands-on workshops and technical discussions. International experts worked closely with EVN engineers to ensure a thorough understanding and adoption. As a result, there are stronger, more autonomous operational teams equipped with the tools and knowledge to maintain complex infrastructure to the highest standards.

During the implementation period, two study tours in France and Belgium were organized, providing EVN staff members with the opportunity to witness first-hand how European operators manage HSE risks, translating these observations into actionable lessons for Vietnam, as well as insights into the cutting-edge O&M processes.

An effective and future-oriented cooperation model

The Ialy Hydropower Plant Extension Project stands as a prime example of how international cooperation can deliver tangible, lasting improvements. The project has shown that targeted support, paired with strong local engagement, can drive meaningful change—not just in individual initiatives, but also in building lasting institutional capacity.

AFD and the EU have reaffirmed their commitment in supporting Vietnam’s energy transition. This project is only the beginning. Future projects, such as the Bac Ai Pumped Storage Hydropower Project underline the continuation of this partnership and Team Europe support to Vietnam’s energy transition under the Just Energy Transition Partnership.

As Vietnam pursues its ambitious climate goals, the EU and AFD remain strategic partners, providing technical know-how and financial resources to ensure that hydropower and other renewable sources are deployed responsibly, efficiently, and sustainably.

The success of the project is an illustration of what can be achieved when expertise, commitment, and vision come together. It reflects EVN’s determination to lead the way in safer renewable energy production, as well as the EU’s strategic intent to champion climate change mitigation efforts in Vietnam.

Vietnamese companies agree deal for Laos hydropower project

The Construction Joint Stock Company 47 has announced that it had recently reached a deal with Song Da 5 Joint Stock Company to construct the Nam Pha, Nam Phak and Phouphong dams at the Nam Phak hydropower project in Laos.