Quarterly Report for Year 1 Quarter 2 (January – March 2021)

The program's primary objective is to reduce greenhouse gas emissions from the energy sector, promote energy efficiency, and increase the use of renewable energy sources. Vietnam's energy demand is increasing at a rate of 10 percent per year, driven by the country's fast-growing economy and intensive energy consumption patterns. The country has become a net-energy importer, relying heavily on thermal (coal) power and external sources of energy. To meet the increasing energy demand, the Government of Vietnam (GVN) predicts shortages of over 3.7 billion kWh in 2021 and 10 billion kWh in 2022, requiring US$8-10 billion annually in energy sector investment over the next decade. During its second quarter of operation (January 1, 2021 through March 31, 2021), V-LEEP II prepared and submitted to USAID its two foundational documents: the Year One Work Plan and the Monitoring, Evaluation and Learning (MEL) Plan. The program also submitted other required Year One deliverables, including its Private Sector Engagement (PSE) Plan, Environmental Mitigation and Monitoring Plan (EMMP), Grants Manual, Emergency Contact Plan, and Gender and Social Inclusion Action Plan. V-LEEP II conducted two workshops that informed its planning: a Start-Up Workshop that underpinned collaboration with other USAID and US Government (USG) programs and a Co-Planning Workshop that marked the initial formal consultations with GVN counterparts within the Ministry of Industry and Trade (MOIT). The program also progressed substantially toward receiving its required recognition from GVN as an Official Development Assistance (ODA) program by drafting the Project Document that will serve as GVN's basis for a multi-Ministry ODA consideration process and socializing this Project Document with MOIT to ensure it is responsive to counterpart needs. The program's approach focuses on increasing the deployment of advanced energy systems, improving energy sector performance, and increasing competition in the energy sector. V-LEEP II aims to achieve this through a range of interventions, including the development of a comprehensive energy sector strategy, the promotion of energy efficiency and renewable energy sources, and the improvement of grid infrastructure. In terms of progress, V-LEEP II has made significant strides in its second quarter of operation. The program has prepared and submitted its foundational documents, including the Year One Work Plan and MEL Plan, and has submitted other required Year One deliverables. V-LEEP II has also conducted two workshops that informed its planning and has progressed substantially toward receiving its required recognition from GVN as an ODA program. Looking ahead, V-LEEP II plans to continue its efforts to advance the transition of Vietnam to a clean, secure, and market-based energy sector. The program will focus on increasing the deployment of advanced energy systems, improving energy sector performance, and increasing competition in the energy sector. V-LEEP II will also continue to work closely with GVN counterparts and other stakeholders to ensure the successful implementation of its interventions and the achievement of its objectives.