Project promotes energy savings

A project to promote energy conservation at small-and medium-sized enterprises in Vietnam has succeeded thanks to strong commitment from involved parties and efficient project planning, according to a workshop held in the capital city yesterday.
The $39 million project, launched in 2006 by the Ministry of Science and Technology, UNDP and Global Environmental Facility, has engaged with more than 500 businesses in 543 energy efficiency sub-projects in the sectors of brick production, ceramics, paper mills, garments and food processing.

Speaking at the international workshop to share experiences in implementing energy conservation and efficiency, Science and Technology deputy minister Tran Viet Thanh said the work was one of the most successful projects on sustainable development between Vietnam and the UNDP.

So far, it helped Vietnam cumulatively save 232,000 tonnes of oil and cut CO2 emissions by more than 944,000 tonnes.

Thanh said the project had created favourable conditions for Vietnamese enterprises to access advanced technology and management experiences on energy conservation and efficiency, especially thanks to the $1.7 million Loan Guarantee Fund.

Businesses that got on board reported that their production costs reduced by 10-50 per cent, while productivity and product quality increased by about 30 per cent, which helped improve the enterprises’ competitiveness. Nearly 100,000 jobs were created in rural areas and trade villages in the sector of brick and ceramics production.

Thanh said Vietnam had diverse energy resources but small reserves while energy use was still largely inefficient.

“There is significant potential for large energy savings in both industry and at households,” he said, adding that the country had been improving its legal framework to facilitate energy efficiency.

Project director Nguyen Ba Vinh called for more support policies for energy service companies in terms of legal procedures, finance and technology as well as a greater focus on training skilled human resource for the sector.

HCM City’s Energy Conservation Centre director Huynh Thanh Tuoc said that as one of the first energy service providers in Vietnam, his centre, established nine years ago, saw increasing interest in energy efficiency from Vietnamese enterprises.

However, the shortage of detailed regulations, support policies, consultation services and concerted efforts among parties may hinder progress on the issue.

“Now, energy efficiency is not only an important issue for production, lighting systems and households but also for transportation and construction; so this requires cooperation across sectors,” he said, adding that energy must be a priority consideration in land-use planning and urban development.

Moreover, Tuoc said that few banks in Vietnam were effectively encouraging energy conservation and efficiency work, as enterprises embarking on energy efficiency projects sometimes found it difficult to secure bank loans.

UNDP Country director Setsuko Yamazaki said energy efficiency not only helped reduce greenhouse gas emissions, but also reduced energy costs for businesses.

“New, clean technology can help businesses produce higher quality products and prosper, thus generating more green jobs and contributing to poverty reduction,” said Yamazaki.

During the workshop, experts from Cambodia, China, Japan, South Korea, Laos, the Philippines, Thailand and Vietnam presented experiences and lessons learnt on energy conservation and efficiency, financing and energy efficient technologies. – VIR

Tags: Vietnam energy, Vietnam energy industry, Vietnam Energy sector