Energy efficiency: Enhancing investment effectiveness in industry

07/01/2025

On the morning of January 7, 2025, in Hanoi, the Ministry of Industry and Trade, in collaboration with the World Bank celebrated the workshop "Energy efficiency - Invest effectively". This event is part of the "Vietnam Scaling Up Energy Efficiency Project (VSUEE), funded by the Green Climate Change.

The workshop was held in a hybrid format, combining in-person and online participation, with the attendance of representatives from the Ministry of Industry and Trade, the World Bank, the VSUEE Project Management Office, Saigon-Hanoi Commercial Joint Stock Bank (SHB), and other financial institutions. Notably, the event welcomed numerous industrial enterprises nationwide. It offered an opportunity for attendees to discuss, share experiences, and explore specific solutions while facilitating connections between financial institutions and promoting energy efficiency projects in Vietnam's industrial sector.

Ms. Nguyen Thi Lam Giang, Director General of the Department of Energy Efficiency and Sustainable Development delivered her opening speech at the workshop.

In her opening remarks, Ms. Nguyen Thi Lam Giang, Director General of the Department of Energy Efficiency and Sustainable Development and also the Director of the VSUEE Project, stated: “In recent years, energy efficiency has been a key focus of the Party and State leadership, recognized as one of the critical pillars for ensuring energy security and fostering sustainable development in the energy sector. In 2020, the Politburo’s Resolution No. 55/NQ-TW dated February 11, 2020, on the 'Orientations of Strategy for Energy Sector Development 2030, with a Vision towards 2045,' emphasized that energy efficiency must be regarded as a national priority and a shared responsibility of the entire society."

The VSUEE project is a testament to Vietnam's strong commitment to optimizing energy use and reducing greenhouse gas emissions. Ms. Nguyen Thi Lam Giang also emphasized that, through financial mechanisms such as the Risk Sharing Facility (RSF) and close collaboration between enterprises and financial institutions, Vietnam can achieve its energy efficiency goals while promoting sustainable development in the industrial sector.

At the workshop, the Project Management Office provided a detailed introduction to the VSUEE Project's activities and objectives, including technical and financial support for industrial enterprises and financial institutions to promote energy efficiency projects. Program Implementing Entity (PIE) representative from Saigon-Hanoi Commercial Joint Stock Bank (SHB) introduced the Risk Sharing Facility (RSF), the guarantee process, and how enterprises can participate in the fund to receive financial support for energy efficiency projects. He also highlighted the benefits that Participating Financial Institutions (PFIs) can gain from joining the Project.

The RSF was established to mitigate the credit risks encountered by financial institutions when financing energy efficiency projects through the issuance of RSF credit guarantees. Specifically, by joining the project, PFIs can secure RSF guarantees covering up to 50% of loans issued for energy efficiency investments. Additionally, banks involved in the project can receive specialized training on energy efficiency project appraisal, access to green technology trends, and enhanced capacity to implement international projects.

Mr. Do Tuan Linh, a representative of SHB Bank, presented the Risk Sharing Facility (RSF).

In addition, Mr. Duong Chi Cong, an energy expert from Vietnam Technology Solutions JSC (VETS), shared insights on technological innovations and advanced energy efficiency solutions in the industrial sector. His presentation focused on energy-saving and efficiency strategies, including general approaches to energy efficiency in industry; and specific solutions for sectors such as cement, textiles, plastics, paper, steel, beverages, and seafood processing. These solutions not only help reduce production costs but also promote sustainable development when the industrial sector faces environmental and energy challenges.