"The efficiency and modernization investments under this project will improve the reliability of energy supply to industries and households and contribute to Vietnam’s socio-economic development,” said Victoria Kwakwa, the World Bank Country Director for Vietnam. The project aims to provide electricity users across Vietnam with better quality and reliable services, and to reduce greenhouse gas emissions through efficiency improvements.

"Successful implementation of this project will contribute to strengthen Vietnam’s competitiveness and environmental sustainability, which are also key pillars of the World Bank’s strategy for Vietnam in the 2012 – 2016 period," said Hung Tien Van, Senior Energy Specialist and Task Team Leader for the project.

The project will contribute to meeting the National Energy Development Strategy to 2020’s objectives by reducing investment needs in the power sector, strengthening energy security and adapting to climate change.

The World Bank contributes US$449 million to the US$800 million project and US$30 million comes from the Clean Investment Fund (CTF) to support the implementation of smart grid technologies.

The Australian Agency for International Development (AusAID) provides US$8 million in grants for technical assistance and capacity building. The remaining investment of US$313 million will come from the Government of Vietnam in counterpart funds.

The World Bank has closely collaborated with the Government of Vietnam over the last decade to expand the power network and to provide electricity to all parts of the country.

As a consequence, access to electricity has increased from 50 percent in 1996 to about 97 percent in 2011. Today the focus of World Bank assistance has shifted from providing new electricity connections to improving the quality of services to consumers.