The document was inked by representatives of the Vietnamese Ministry of Industry and Trade (MoIT) and the U.S. Department of State during a working trip to the U.S. from September 30 to October 2 by a MoIT delegation.

The MoU is an important milestone in energy collaboration between the two countries, opening up a new page of more intensive and comprehensive cooperation.

The document covers various cooperation areas in the energy sector, ranging from energy security, energy market development and energy transformation to relevant regulations and policies, energy management and energy technology and infrastructure, including the role of public-private cooperation.

It establishes a clear collaboration framework and mechanism, thus facilitating specific partnerships between Vietnamese and U.S. firms, towards the goal of sustainable energy development in Vietnam.

At the signing ceremony

Both sides hoped that the document will create the foundation for the building of cooperation roadmaps in specific energy sectors.

In an interview granted to the Vietnam News Agency (VNA), MoIT Minister Tran Tuan Anh highlighted the significance of the MoU as Vietnam needs to advance the domestic energy sector to fuel its fast-growing economy.

Vietnam, therefore, would be a major market for U.S. investors, he said, noting that the Southeast Asian country considers the U.S. an important partner not only because of the growing bilateral trade ties but also because of the U.S.'s cutting-edge and environmentally-friendly technologies in energy and liquefied gas in particular.

Anh further explained that Vietnam is an energy importer and greatly relies on imported liquefied gas to ensure its energy security.

The signing of the MoU reflects joint efforts in outlining common goals and basic solutions to expand and deepen the mutually-beneficial cooperation between the two states, he said, adding that the document will create the most favorable conditions for businesses of both sides to exploit opportunities in the respective markets.

Francis R. Fannon, Assistant Secretary for the Bureau of Energy Resources at the U.S. Department of State, said the MoU has created a clear and strong relationship.

The U.S. regards this as the first step and looks forwards to the expansion of more cooperation areas in the future, he said.

According to Fannon, the U.S. has programs aiming to help foreign governments, including Vietnam, reach energy ambitions and people have many options on clean energy.

Such programs have opened up opportunities for U.S. private enterprises and improved their confidence in investing in Vietnam, he said.

Following the signing ceremony, Anh handed over a document of the MoIT to the U.S. side, announcing that Vietnamese Prime Minister Nguyen Xuan Phuc has agreed to assign AES Corporation to be the major investor of the USD 5 billion Son My 2 Gas Power Plant under a BOT contract. Once operational, the plant will need to import nearly USD 2 billion worth of LNG from the U.S. each year.