The Vietnam National Target Program on EE&C in the period 2012 to 2015 (VNEEP 2) was approved by the Government under the Decision No.1427/QD-TTg dated 2 October 2012. Vietnam’s energy efficiency and conservation target is to:

  • reduce total final energy consumption (TFEC) by 8% as compared to BAU and to reduce Energy Intensity of Energy Intensive Industries by 10% by the year 2020.
  • reduce GHG emissions by 8% by 2030 compared to BAU; and up to 25% with international support.
  • reduce GHG intensity per GDP unit by 20% by 2030 from 2010 levels.
  • increase commercial electricity savings to more than 10% of total power consumption by 2020 relative to BAU.

Vietnam is one of the most energy intensive countries in ASEAN in which Industrial growth has been one of the key drivers of Vietnam’s increasing energy intensity, accounting for 48% or almost half of the final energy use. Subsequently, Vietnam Government has its best efforts on energy efficiency such as Vietnam Energy Efficiency for Industrial Enterprises Project, issued a series of decrees such as Decision No. 79/QĐ/2006/QD-TTg (dated April 14, 2006) and Decision No. 1427/QD-TTg (dated October 02, 2012) in order to promote energy efficiency and conservation.

The Ministry of Industry and Trade in 2005 has released the Vietnam National Energy Efficiency Programme (VNEEP) for the period 2006–2015. This Programme institute measures for improving energy efficiency and conservation in Vietnam, involving a wide range of stakeholders across all sectors of the Vietnamese economy. VNEEP aims to was to encourage, promote and disseminate energy efficiency and conservation management in the public sector, and to include energy efficiency and conservation measures in science and technology research activities. There are four projects initiated under VNEEP, one of which is specifically on energy efficiency and conservation in Buildings. The new phase of the programme that will run from 2019 until 2030 targeting reduction in 10 % of Energy Consumption is being revised, the programme is due to be approved in the year 2019.

The Law on Economical and Efficient Use of Energy (No. 50/2010/QH12) covers all areas of the economy, specifically on the industrial sector, the transportation sector, the agricultural sector, the service and domestic sectors, and all state-funded investment projects and agencies.

The National Targeted Program on Energy Efficiency and Conservation 2012-2015 focus on the area of industrial manufacturing, large energy consuming buildings, household, high performance equipment among others. The program has projects on creating energy efficiency and conservation awareness, extensive use of high-performance energy-saving equipment and implementation of mandatory management in compliance with Vietnamese Construction Standard.

The Vietnam Power Development Plan VII sets realistic targets for EE savings “above 10% of total electricity consumption” relative to Business-As-Usual (BAU) conditions, by 2020. The Plan, together with the Vietnam National EE Program, identifies significant savings in the industrial, residential and commercial sectors, as well as significant improvements in EE indicators (energy intensity and energy elasticity), resulting from advances in technical standards and high-performance equipment in energy-intensive industries.

Integrated fund projects designed by the government in order to boost investments in industrial energy efficiency projects, this including two components such as:

  1. Component 1: Energy Efficiency Investment Lending (USD 312 million, of which USD 200 million from International Bank for Reconstruction and Development, USD 50 million from Participating Financial Institutions, and USD 62 million from Industrial Enterprises);
  2. Component 2 – Technical Assistance and Capacity Building for Improving Energy Efficiency (USD 3 million financed through International Development Association).

Vietnam has developed EE&C financing instruments as follow: financing schemes from the Vietnam Environment Protection Fund (VEPF), the National Technology Innovation Fund (NATIF), and the Vietnam Development Bank.

According to the Resettlement Policy Framework (RPF) by the Ministry of Industry and Trade, the types of energy efficiency sub-projects will include:

  1. Adoption of energy saving industrial technologies such as more efficient industrial boilers, kilns, and heat exchanger
  2. Recovery and utilization of by-product gas, waste heat and pressure;
  3. Installation of highly efficient mechanical and electrical equipment, including motors, pumps,
  4. Industrial system optimization to reduce energy use. Most of these subprojects will be located within the existing premises of industrial facilities and will not require additional land acquisition.
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