Workers of the Electric Utility Provider in Hanoi are telling a production household in Thanh Oai district about how to save power and use it safely and efficiently. (Photo: Ngoc Ha/VNA)

According to scientific reports, using energy economically and efficiently is a practical solution to ensure national energy security and develop the economy. This is even more important for Vietnam, which is one of the countries with large energy consumption in Southeast Asia and mainly driven by industrial growth.

Energy consumption in Vietnam's industrial sector accounts for more than 47% of total national energy consumption, according to a report by the Ministry of Industry and Trade (MoIT).

A survey by the National Program on Energy Saving and Efficiency until 2030 shows that Vietnam's industrial sector could save 20 to 30% of its currently used energy.

The MoIT and the World Bank (WB) have recently launched the “Vietnam Scaling Up Energy Efficiency Project” (VSUEE) to promote investment in the energy-saving market of the industries in Vietnam.

The 11.3-million-USD non-refundable project is funded by the World Bank to implement the “Risk Sharing Fund” and is believed to help increase investment in the market and in energy saving in industries, in particular through credit guarantee.

Trinh Quoc Vu, Deputy Director of the Department for Energy Saving and Sustainable Development of the Ministry of Industry and Trade said, “To ensure energy security and limit excessive dependence on imported fuel, the best solution is to use energy economically and efficiently.”

“In addition to the efforts by the Government and domestic organizations and individuals, international support, including that of non-governmental organizations and foreign donors, plays an important role in boosting investment in Vietnam’s energy saving market,” Vu went on.

At the launch of the VSUEE  (Photo: moit.gov.vn)

Chu Ba Thi, World Bank Vietnam’s senior energy specialist, said that promoting energy transition, including developing renewable energy and using energy economically and efficiently, is one of the World Bank's top priorities in Vietnam.

Thi said he believes the implementation of the VSUEE project will boost credit for energy saving in Vietnam’s industrial sector, adding, “The project will provide guarantees to banks so that they can be more confident in making loans for energy-saving investment projects.”

According to Thi, “As energy-saving investments bear very high risks, banks often lack the confidence to lend and aren’t qualified to evaluate the technical and financial feasibility of investment projects. The VSUEE project includes both a guarantee fund and technical support, which will help commercial banks raise their investment efficiency.”

Echoing Chu Ba Thi, Tran Quang Tien, who represents the State Bank of Vietnam for the VSUEE project, said, “We like the idea of the Risk Sharing Fund, a type of credit guarantee managed by the reliable Saigon-Hanoi Bank (SHB).”

Tien added, “Using the risk-sharing model, the Fund will help commercial banks provide capital for businesses and encourage businesses, especially industrial businesses, to be more innovative in producing products that save energy, reduce greenhouse emissions, and are more profitable. This is a major goal of the Vietnamese government.”

SHB has committed to providing maximum support to the project to allow industrial businesses to step up their investment in energy-saving technology, equipment, and solutions and improve their market efficiency.