FDA, EDF IN sign a pact in Hanoi. (Source: VNA)

The French Development Agency (AFD) and the Electricity de France International Networks (EDF IN) signed two financial agreements valued at 752,223 USD, in Hanoi on September 29.

The agreement is expected to optimise investment planning of two major electricity distribution companies - Hanoi Power Corporation and the Northern Power Corporation, both subsidiaries of Electricity of Vietnam (EVN).

EDF IN would support the two companies in drawing up a master plan for two pilot areas jointly identified at a later date.

Vietnam's aggregate energy demand, which has significantly increased over the last two decades, is projected to have a growth rate of 5 percent to 10 percent in the coming years.

Vietnam is forecast to face several major challenges in the future, with reliable power supply requiring expansion of the country's investment capacity. In 2014, EVN invested nearly 6 billion USD for the construction of power lines, which represents a major effort compared to previous years.-VNA