A summit marking 45 years of diplomatic relations was held on December 14 in Brussels and brought together the leaders of the European Union and the Association of Southeast Asian Nations (ASEAN). After the United States and China, the two blocs are each other’s third-largest commercial partners. Amid tensions between China and the United States, both groups have focused expanding their economic alliances. Leaders made significant announcements regarding infrastructure and climate funding while also discussing topics including the digital economy, global warming, and regional stability.
Vietnam’s Just Energy Transition Partnership (JETP) contract with the International Partners Group is at the top of the list of deliverables. The $15.5 billion initiative will mobilize public and private investment over three to five years to support Vietnam in meeting its net zero objectives, limiting emissions from electricity generation, and obtaining 47 percent of its power from renewable sources by 2030. This is similar to the agreements reached with Indonesia and South Africa in the last year.
The unveiling of the agreement was originally scheduled to take place at COP27 in November, but Vietnam is said to have delayed talks after rejecting the initial $5 billion offer. Vietnam will now collaborate with partner nations over the course of the following 12 months to create a JETP Resource Mobilization Plan that includes information on funding and technical support.
The Global Gateway program of the European Union has unveiled a $10.7 billion infrastructure package of grants and loans for ASEAN nations. The plan, which is promoted as Europe’s contribution to “smart, clean, and secure infrastructures and links,” is commonly regarded as the European Union’s response to China’s Belt and Road Initiative. There were no specifics on specific projects or a breakdown of financing sources, but the package will concentrate on sustainable connectivity and the green transition to enable better access to economic opportunities and basic services throughout Southeast Asia.
