The World Bank and Vietnam’s Ministry of Industry and Trade has announced a $102 million project to support the adoption of energy efficient technologies and practices in industrial enterprises.
The project will provide industrial enterprises with access to a new line of credit to fund their purchase of energy efficient and production optimising technologies.
This will reduce energy consumption and production cost, thereby increasing overall competitiveness in domestic and international markets.
Under the new programme, financial institutions and industrial enterprises will prepare, evaluate and appraise energy efficient projects.
The programme will create a new line of business for financial institutions as providing loans to support energy efficient investments in industry will result in the scaling up of energy-efficiency lending to industries.
Ousmane Dione, the World Bank’s Country Director for Vietnam commented:
“The Government has made strong efforts over the last few years in developing policies and regulations aiming to promote energy efficiency in all sectors.”
“Vietnam’s energy sector is facing many challenges due to limited domestic energy resources and the high electricity demand to support economic growth. In this context, implementing and scaling up energy efficiency investments will bring multiple benefits, such as improving the competitiveness of Vietnam’s industrial sector, reducing GHG emissions and avoiding the need for investments in new coal fired power generation.”
The World Bank’s announcement follows news that the European Union will provide €108m to support a more sustainable energy sector in Vietnam, with the aim of promoting efficient, clean and renewable energy available to all citizens.
Stefano Manservisi, European Commission Director-General of International Co-operation and Development, said:
“Our ambitious programme of 108 million euros will not only support the Government of Vietnam in its objectives on electricity supply to rural, mountainous and island areas to provide reliable and sustainable electricity access to up to 1.2 million households, but it will also enhance the governance of the energy sector to facilitate the shift to a more sustainable energy development path in Vietnam.”
Vietnam’s energy sector has grown rapidly in recent years, and ensuring its efficiency is key to maintaining the country’s socio-economic development.
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Image credit: Tran Phu