Electricity for the poor

Sweden has supported the development of Vietnam’s energy sector since the early 80s with a focus on electricity development in cities and urban areas. To date, Sweden-Vietnam development cooperation in the sector has given a priority to the electrification of rural areas, where access to electricity is still low and a large part of the customers are the poor and the disadvantaged.

An Agreement on Support to Rural Energy was signed between Sweden  and Vietnam for 2003-2008 with an amount of Grant Fund SEK 48 million. The Agreement gives attention to the renewable energy in the areas where the people could not access to the national grid.

Vietnam's rural electrification programme envisages that by the year 2010 all communes in the plain and 60% of rural households should have electricity. A total cost of USD 3 billion is estimated.

Besides grants, Sida also makes concessionary credits and soft loans available to Vietnam for investment in the energy sector.