Steel production is one of Vietnam’s key industrial sectors and is also among the largest energy consumers. Energy efficiency and conservation have become a crucial factor in helping steel enterprises enhance competitiveness, reduce production costs, and move toward sustainable development.

Steel remains incredibly relevant and deeply integrated into the modern world. Steel is used extensively in engineering, construction and other applications vital to modern life. The downside is that traditional methods of manufacturing, based upon fossil fuels such as coal, are damaging to the environment as they produce significant quantities of carbon dioxide (CO2). In fact, according to McKinsey & Company1, steel production accounts for about 8% of global emissions. In 2018, every ton of steel produced emitted an average of 1.85 tons of CO2.

In 2023, four enterprises in the steel production, building materials, and wood processing sectors participated in the Voluntary Agreement Scheme on Energy Efficiency in Energy-Intensive Industries (VAS Program), within the framework of the Energy Partnership Program between Vietnam and Denmark 2020-2025 (DEPP3 Program), implemented by the Ministry of Industry and Trade in collaboration with the Embassy of Denmark and the Danish Energy Agency.

The application of technologies to help save energy and protect the environment is in Hoa Phat Group's top 1 priority. Over the years, the group has invested in many "green" technology solutions to produce "clean" steel products.

The Climeon Ocean system designed will capture “waste heat” from SSABs Borlänge Plant to produce clean electricity

Germany's solar photovoltaic (PV) industry now employs more workers than steel production in the USA. With over 100,000 "green jobs" in PV alone, around 75 percent of European solar cells and modules as well as countless components are made in Germany. Record-breaking domestic demand is a key industry driver, with 7.4 GWp of PV capacity installed in 2010.

In Chau Khe, Dinh Bang (Bac Ninh Province), more than 800 households are involved in iron and steel production. To temper and laminate steel, they consume about 200 million kWh of electricity and 30,000 tonnes of coal, and total expenditure on energy consumption amounts to VND150 billion each year. Such high energy consumption is attributed to the use of outdated technologies and equipment as well as insulated steel furnaces. At some stages of steel production, the rate of energy losses is 20-25 percent.

Iron and steel production remains one of the strengths of Bac Ninh. Preliminary investigations have shown that there are over 800 steel enterprises in Chau Khe, Dinh Bang, including 100 steel tempering facilities, 80 steel rolling facilities, 50 steel dragging and drawing facilities, 150 recycled embryo rolling facilities and other metals production facilities. The field of steel tempering and rolling alone provides 200,000 tons of steel ingot; 200,000 tons of rolled steel to the market annually, which brings about VND200,000 billion per year.

Along with the development and renovation of the country, Hai Phong has been constantly renovating. Currently in the area, there are hundreds of large enterprises operating in such sectors as shipbuilding, cement manufacturing, steel production, etc with thousands of small and medium enterprises. The strong growth of businesses has brought about the increasing demand for energy.