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Monday, 10/03/2025 | 04:28

Project activities

Promoting the energy efficiency investment market in Vietnam's industrial sectors

16:17 - 07/01/2025

vsuee

On the morning of January 07, 2025, in Hanoi, the Ministry of Industry and Trade, in collaboration with the World Bank, organized the discussion on “Energy Efficiency - Invest Effectively” under the framework of the Vietnam Scaling Up Energy Efficiency Project (VSUEE).

The Ministry of Industry and Trade has implemented the VSUEE project from March 2022 to January 2026, which aims to promote energy efficiency and conservation in Vietnam's industrial sector. The project not only contributes to ensuring energy security but also fulfills Vietnam’s commitments to reducing greenhouse gas emissions, aiming for net-zero emissions by 2050.
The seminar featured representatives from the Ministry of Industry and Trade, the World Bank, and financial institutions. Notably, the event brought together many industrial enterprises from across the country. It provided an opportunity for stakeholders to discuss, share experiences, and explore specific solutions, while also connecting financial institutions with industrial enterprises to promote energy efficiency projects in Vietnam's industrial sector.
Ms. Nguyen Thi Lam Giang, Director General of the Department of Energy Efficiency and Sustainable Development and Project Director, delivered the opening remarks for the event.
Ms. Nguyen Thi Lam Giang stated: “In recent years, energy efficiency and conservation have been a focus of the Vietnam Government and are considered one of the key pillars for ensuring energy security as well as fostering sustainable energy development. In 2020, Resolution No. 55/NQ-BTC dated February 11, 2020, by the Politburo on the ‘Strategy for Energy Development to 2030, with Orientations to 2045’ emphasized that energy conservation must be regarded as a vital national policy and a responsibility for all of society.”
On March 13, 2019, the Prime Minister signed a decision approving the Vietnam National Energy Efficiency Programme for the 2019–2030 period, reaffirming Vietnam's determination to optimize energy resources. The program outlines ambitious yet strategic goals: saving 5% to 7% of the country's total energy consumption during 2019–2025 and 8% to 10% during 2019–2030.
The industrial sector currently accounts for over 50% of Vietnam's total energy consumption, making it one of the most energy-intensive sectors. In this context, Vietnam Scaling Up Energy Efficiency Project (VSUEE) was launched to improve energy efficiency and promote energy efficiency investments market in Vietnam's industrial sectors, significantly contributing to the national goals of energy conservation, greenhouse gas emission reductions, and environmental protection.
At the event, the Project Management Board provided a detailed introduction to the activities and objectives of the VSUEE Project, including technical and financial support for industrial enterprises and financial institutions to promote energy efficiency projects. A representative from Saigon-Hanoi Commercial Joint Stock Bank (SHB) - Program Implementing Entity (PIE), introduced the Risk Sharing Facility (RSF), explaining the guarantee process and how industrial enterprises can participate in this fund to receive financial support for energy efficiency projects. The Risk Sharing Facility, under Component 1 of the VSUEE Project, has a scale of USD 75 million, funded by reimbursable resources from the Green Climate Fund through the World Bank. The fund was established to mitigate the credit risk for participating financial institutions when lending to energy efficiency investment projects by issuing RSF credit guarantees.
Ms. Nguyen Thu Phuong, the VSUEE Project Coordinator, provided an overview of the project.
Mr. Do Tuan Linh, a representative of SHB, shared insights on the Risk Sharing Facility (RSF).
Additionally, Mr. Duong Chi Cong, an energy expert from Vietnam Technology Solutions JSC (VETS), presented technological innovations and advanced energy-saving solutions in the industrial sector. His presentation focused on energy-saving and efficiency solutions, including general approaches to energy efficiency in industries and specific solutions for sectors such as cement, textiles, plastics, paper, steel, beverages, and seafood processing. These solutions aim not only to reduce production costs but also to promote sustainable development in the context of increasing environmental and energy challenges faced by the industrial sector.
Mr. Duong Chi Cong provided detailed information on technological innovations and energy-saving solutions for the industrial sector.
As part of the event, two information stations were set up to facilitate direct exchanges between industrial enterprises and financial institutions regarding technology and financing for energy efficiency projects.
Information Station No.1: “Energy Efficiency Solutions and Technical Support”, focused on energy-saving solutions and technical assistance, featuring participation from energy service companies (ESCOs) and energy efficiency equipment suppliers (EESPs). Discussions covered topics such as technological processes, energy-saving solutions, energy-efficient equipment, and technical support, including energy audits, feasibility studies, and environmental and social impact assessments.
Information Station No.2: “Financial Pathways”, provided information on financial products supporting energy efficiency projects, including the RSF, financial processes, loan products, and guarantee mechanisms from financial institutions. Industrial enterprise had the opportunity to engage directly with financial institutions to better understand financial opportunities and how to participate in energy efficiency projects through financial support programs."
The "Technology" and "Finance" information stations provided detailed information to seminar participants on energy-saving technology solutions and financial resources for energy-saving investments.
The event not only served as an opportunity for Vietnamese industrial enterprises to access advanced energy-saving technology solutions but also facilitated connections between industrial enterprises and financial institutions, promoting investments in energy efficiency projects. The Ministry of Industry and Trade and the World Bank expect this event to contribute to the adoption of energy-saving solutions in Vietnam’s industrial sector, aiming for a more sustainable and energy-efficient industrial development in line with Vietnam National Energy Efficiency Programme for the 2019–2030 period.
Risk Sharing Facility (RSF) is a component of the VSUEE Project, with a scale of USD 75 million funded by the Green Climate Fund through the World Bank. It was established to reduce the credit risks of participating financial institutions (PFIs) when providing loans for energy-saving investment projects through the issuance of RSF credit guarantees.
Objectives
The project aims to enhance energy efficiency in Vietnam's industrial sectors through: Encouraging private-sector investment in energy-saving projects. Providing additional technical support and capacity building for stakeholders in the energy efficiency market.
Guarantee Mechanism
The Saigon-Hanoi Commercial Joint Stock Bank (SHB) was selected by the World Bank and the Ministry of Industry and Trade as the Program Implementing Entity (PIE). SHB will manage and operate the RSF over the 15-year project implementation period, which includes two phases: The first five years for issuing guarantees; The following ten years for recovering guarantees. SHB will issue RSF guarantees for loans by PFIs aimed at energy efficiency investments (eligible sub-projects) by industrial enterprises or energy service companies (ESCOs).
VSUEE Project Management Board.

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EVENTS

  • 07/01/2025

    Roundtable Meeting "Energy Efficiency - Invest Effectively"

  • 10/01/2025

    Roundtable Meeting "Energy Efficiency - Invest Effectively"

  • 25/06/2024

    Training course on "Procedure for the implementation and issuance of RSF guarantees"

Participating Financial Institutions