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The Energy Labelling Program in Vietnam

10:37 - 20/11/2018

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In Vietnam, the Energy Labeling Program was implemented by the Ministry of Industry and Trade on a voluntary basis in 2008 and has been carried out on a mandatory basis since July 1, 2013.

The goal of the Energy Labelling Program and Energy Performance Standards is to save about VND 10 trillion ($ 480 million) which is equivalent to a reduction of carbon dioxide of 34 million tons by  2030. The annual electricity savings is about 6,000 GWh per year meaning that two 500 MW coal-fired power plants is no longer needed (leadubg to a saving of $ 1 billion for power plants).
The list of appliances subject to energy labelling and energy performance standards are specified in the Decision No. 51/2011 / QD-TTg of the Prime Minister. They are: (1) home appliances including straight fluorescent lamps, compact fluorescent lamps, electromagnetic and electronic ballasts for fluorescent lamps, air conditioners, refrigerators, household washing machines, rice cookers, electric fans, televisions; (2) office and commercial appliances including copiers, computer screens, printers, commercial refrigerators; (3) industrial equipment including distribution transformers, electric motors; (4) means of transportation including cars with 7 or fewer seats.
The Ministry of Industry and Trade coordinates with the Ministry of Science and Technology in developing Vietnam's standards including 44 standards on methods of measurement and evaluation of energy efficiency of appliances subject to energy labelling. 
Two types of energy labels are certification labels which certify equipment and vehicles that have the highest energy efficiency compared to others of the same type and comparative labels which provide information on energy efficiency equivalent to 1-5 stars. When choosing appliances subject to energy labelling, customers can compare energy efficiency of such appliances on basis of energy labels and buy one appropriate to their need. 
According to statistics of the Ministry of Industry and Trade, the energy labelling program has been implemented on a compulsory basis since 1 July 2013, up to June 2018, 15,000 product codes belonging to 19 categories of equipment are labelled. Sales of home appliances which are labelled such as electric fans, televisions, air conditioners accounts for more than 90% of the total sales.
According to a report by the Vietnam Air Conditioning Association, the amount of electricity saved every year thanks to the purchase and use of high performance and energy efficient air conditioners is  over $ 100 million kWh per year. According to a report by CLASP, USA, by 2017, almost 100% of air-conditioners in Vietnam were labeled; the number of air conditioners whose energy efficiency was rated 4 and 5 stars  made up for 62.8%.
In 2015, with a total of 150 million lights, the amount of electricity saved thanks to the elimination of incandescent lamps whose capacity is over 60 W was about 1.5 billion kWh per year. 
Energy labels have made consumers get used to purchasing high performance and energy efficient appliances. Instead of only paying attention to prices and designs of products, customers now actively find information on energy consumption of equipment to make a decision as it brings about economic benefits related to the amount of electricity saving. It is estimated that the amount of power reduced thanks to the use of labelled appliaces will reach about 10% by 2020 and 30% by 2030.
In 2017, the Prime Minister also issued the Decision No. 04/2017 / QD-TTg pointing out 5 extra products subject to the compulsory energy labeling. They are LEDs, laptops, storage water heaters, cars with more than 7 seats to 9 seats, motorcycles and motorbikes. It also affirmed the Government's consistent policy on management of energy efficiency of energy using vehicles and equipment, further control and management of energy and resource-intensive investment projects and protection of national energy security.
The Ministry of Industry and Trade has carried out the Energy Labelling Program in coordination with many relevant ministries. Especially, the check of production and importation and the supervision of products when being introduced to the market have been implemented synchronously. The General Department of Vietnam Customs, Ministry of Finance, Ministry of Science and Technology, Market Management Agency under the provincial Departments of Industry and Trade have made great contribution to the success of the Energy Labelling Program. 
In addition to achievements such as raising awareness of people about identification of energy-saving products, elimination of energy-intensive appliances, a switch to high performance and energy efficient equipment leading to the environmental protection and national energy consumption reduction, the Energy Labelling program still has some weaknesses.  Regarding the certification and labelling procedures specified in the Circular 07/2012 / TT-BCT, some importers believe the certification procedure for imported appliances is time wasting and costly, the validity of the written energy efficiency test lasts only six months and the infrastructure of  domestic energy efficiency testing laboratory is insufficient. 
In the end of 2016, with a view to implementing the Government's Resolution No. 19/2016 / NQ-CP dated April 28, 2016 on simplification of administrative procedures related to the Energy Labelling program. The energy labelling procedures are subject to post inspection instead of pre inspection. Companies registering for the energy labeling are entitled to announce energy efficiency of their vehicles and equipment and have them labelled on their own.  They are also entitled to use energy efficiency testing results once for each product model. These provisions are applicable to domestically manufactured products as well as imported ones in case of the same model, manufacturer, origin and specifications (the validity of the written energy efficiency test is not limited). The energy labeling is tested by independent testing organizations or qualified laboratories.
At the same time, the Ministry of Industry and Trade also provides online public services at level 4 for energy labeling procedures to help businesses minimize the time and cost of energy labeling for equipment. (The proportion of written energy labelling registration submitted online in 2017 was 38%. This figured increased to 46% in the first nine months of 2018). 
At present, there are nine testing facilities designated by the Ministry of Industry and Trade to test products subject to energy labelling registration on the basis of Vietnam standards. Consumers can be assured of the energy efficiency information published on the energy label. Besides, the Ministry of Industry and Trade will always actively cooperate with related agencies to promote post-inspection and supervision of the energy labeling of enterprises in the coming time.
By Office of Cleaner Production and Sustainable Production and Consumption

Participating Financial Institutions