On March 13, 2019, the Prime Minister issued the Decision No. 280 / QD-TTg approving the Vietnam National Energy Efficiency Program in the period of 2019 - 2030 (VNEEP 3).

The Project for “Promoting Investment Market for Energy Efficiency in Industrial Sector in Vietnam", which is funded by the Korean Government through the Korea International Cooperation Agency (KOICA) and jointly implemented by Korea Energy Agency (KEA) and the Department of Energy Efficiency and Sustainable Development, Ministry of Industry and Trade (EESD, MOIT) make a great deal of sense in this context. 

With regard to electricity consumption structure in Vietnam, the industrial sector accounts for more than 50% of total electricity consumption. Cement, steel, pulp and paper, chemicals are energy-intensive industries. Despite the Vietnam Government and MOIT's efforts, energy efficiency in the industrial sector has not come up to expectation yet. The urgent problem now is how to improve economical and efficient use of energy, especially when fossil resources are being exhausted. In fact, the energy efficiency investment model has been introduced and applied in Vietnam but fails to develop as expected. Two main reasons are (1) Vietnam is new to this model; (2) although Vietnam industrial enterprises are quite aware of the energy efficiency importance, it is very difficult for them to carry out energy efficiency solutions due to their limited of financial capacity. 

On the basis of Vietnam context understanding, the Project for “Promoting Investment Market for Energy Efficiency in Industrial Sector in Vietnam” focuses on providing direct technical assistance to energy service providers (including energy service companies and energy conservation centers, or ESCO for short) and state management officials related to energy efficiency. Thanks to the practical training in selected pilot projects, they have chance to carry out energy efficiency investment projects in line with the ESCO model step by step.

The Project organizes two training courses on management and technology to help trainees to be aware of energy policies in general and energy management system (ISO 50001); energy efficient technologies; ESCO project implementation solutions in particular. The Project also conducts survey at more than 2,000 major energy users in all industries in Vietnam. Then 50 industrial enterprises are chosen for intensive study, analysis and assessment. Finally 10 enterprises are entitled to energy audits which are carried out by energy experts from Korea and Vietnam. On the basis of energy audit results, pilot energy efficiency investment projects are identified. In addition, the Project is willing to investigate and find out the most applicable financial funds for energy efficiency projects; provide technical support for energy efficiency investment project and loan application at the request of enterprises and recommend the energy efficiency investment model appropriate to Vietnam. 

The Project, which is implemented from December 2017 to December 2019, is consists of 3 components: Component 1: Capacity Building and Awareness Raising on Energy Efficiency, Component 2: Identification of the Pilot Business on Energy Efficiency Investment (Pilot Phase 1) and Component 3: Implementation support for EE investment and financing (Pilot Phase 2). 

Beneficiaries of the Project are ESCOs, state management officials related to energy efficiency and major energy users, enterprises supposed to carry out energy audit every 3 years  in accordance with the Law on economical and efficient use of energy.
Thanks to the participation of Vietnam commercial banks such as VCB, BIDV, Techcombank, VietinBank ..., industrial enterprises find it easy to have access loans in order to effectively implement energy saving projects.

According to Mr. Kim Jinoh, Country Director of KOICA Vietnam, KOICA facilitates partnerships with MOIT and related actors in energy and to help Viet Nam translate the VNEEP into reality. The Project for “Promoting Investment Market for Energy Efficiency in Industrial Sector in Viet Nam" is built around an integrated technical and financial solution to achieve energy efficiency.

After studying and analyzing energy saving technologies of 2,409 major energy users (in accordance with the Decision No. 1305/QĐ-TTg of the Prime Minister), the Project selects 10 following industrial enterprises to carry out energy audits: An Hoa Paper JSC, Dabaco Topfeeds Feed Mill - Dabaco Group JSC, Pha Lai Thermal Power JSC, Vicem Hai Phong Cement Company Limited, Danang Rubber JSC, Binh Son Refinery and Petrochemical JSC, Formusa Ha Tinh Steel Corporation, Viet Thang Corporation JSC, Cao Bang Cast Iron And Steel JSC, Vicem Bim Son Cement JSC.

Mrs. Nguyen Thi Lam Giang, Diretor general of EESD said that: "The VNEEP 3 plays an important role in the promoting the investment market for energy efficiency. At the same time, the economical and efficient use of energy in the industrial sector makes contributions to the VNEEP 3's achievements. According to Mrs. Nguyen Thi Lam Giang, "with a view to achieving Vietnam energy efficiency goals, besides efforts of the Vietnam Government, organizations and individuals, support from other countries and non-governmental organizations is very important. The project for "Promoting investment market for energy efficiency in industrial sector in Vietnam" is part of the cooperation between governments of Vietnam and South Korea in order to assist Vietnam in implementing the VNEEP 3 and getting sustainable development".