Saturday, September 23, 2017
  • Green Investment Facility is offered to SMEs in three industrial sectors: the food industry, the brick industry and the ceramics industry

  • GIF applies to loans between 400 million to 4 billion VN

  • 50% bank guarantee for bank loan in energy investments

  • Fund 110 billion VND from Denmark

  • #GIF can be applied for projects with a minimum energy savings potential of 20%

  • The SME will be awarded a rebate on the loan of up to 30% if achieved 50% on energy savings

  • The SME will be awarded a rebate on the loan of up to 30% if achieved 50% on energy savings

Vietnam - Denmark Cooperation in Energy Efficiency and Climate Change Response

Many projects have been implemented by the Vietnamese Ministry of Industry and Trade (MOIT) in coordination with the Embassy of Denmark; the Ministry of Foreign Affairs of Denmark; Danish Ministry of Climate, Energy and Building.

Many projects have been implemented by the Vietnamese Ministry of Industry and Trade (MOIT) in coordination with the Embassy of Denmark; the Ministry of Foreign Affairs of Denmark; Danish Ministry of Climate, Energy and Building.

To understand more about this collaboration, and the efficiency gains as well, HomePage Tietkiemnangluong.com.vn had an interview with Mr. Trinh Quoc Vu, Director of the Science, Technology and Energy Conservation (MOIT).

Vietnam and Denmark have a lot of cooperation in responding to climate change. Could you enlighten more about the cooperation between the Ministry of Industry and Trade of Vietnam and the Ministry of Foreign Affairs of Denmark in this field?

The Ministry of Industry and Trade of Vietnam and the Ministry of Foreign Affairs of Denmark have implemented the cooperation programs for many years. Since 2008, the Ministry of Foreign Affairs of Denmark has implemented the project Adaptation and Mitigation of climate change, to assist Vietnam in coping with climate change. 

In particular, the Ministry of Trade and Industry implemented the second component of climate change mitigation. Under this component, the Danish Ministry of Foreign Affairs supported with the funding for the Ministry of Trade and Industry to implement the National Target Programme on Economical and Efficient Use of Energy.

Also, in this component, Denmark also supported the Ministry of Trade and Industry to prepare the policy framework to promote the activities in Economical and Efficient Use of Energy. The Foreign Ministry of Denmark assisted the Ministry of Trade and Industry to compile a standard curriculum for the training of energy auditors and energy managers in bulk energy users. Currently, we are applying this standard curriculum the academy training within the scope of the national goal of Economical and Efficient Use of Energy.

As far as we know, in addition to cooperation with the Ministry of Foreign Affairs of Denmark, the Ministry of Industry and Trade of Vietnam also collaborates with the Danish Ministry of Climate, Energy and Building. Could you say more about this collaboration?

The Danish Ministry of Climate, Energy and Building supported the Ministry of Industry and Trade and the Ministry of Construction in Low Carbon Transition in Energy Efficiency Project (LCEE). In particular, the Ministry of Industry and Trade implemented the component Promoting energy saving in small and medium-sized enterprises, focusing on three business sectors: bricks and roofing tiles, ceramics and food processing.

This project has been implemented since 2013 and is planned to end in 2017. In this project, in addition to supportive funding for National Target Programme on Economical and Efficient Use of Energy, the project also establish Green Investment Facility, to help small and medium sized enterprises to make investment into energy conservation solutions.

A policy workshop within the framework of the Low Carbon Transition in Energy Efficiency Project  in the field of energy conservation.

The Green Investment Facility has an equity of VND 110 billion. It is expected that this fund will release loans, to support small and medium enterprises in energy saving projects starting July, 2015. In addition, this project also has a component to assist the MOIT to prepare technical assistance projects to evaluate the energy efficiency in SMEs in Vietnam, as well as capacity building program for businesses.

In addition, the Ministry of Industry and Trade and the Danish Ministry of Climate, Energy and Building signed a memorandum on cooperation between the two ministries in the field of energy. The Memorandum of Understanding focuses on support for Vietnam to develop sustainable energy, renewable energy and economical and efficient use of energy.

So, what meaning and effectiveness has the cooperation between the Ministry of Industry and Trade and the Danish Ministry of Climate, Energy and Building brought about, sir?

We always uphold the effectiveness of cooperation with development agencies in general and the cooperation with the Government of Denmark, the Ministry of Foreign Affairs of Denmark and the Danish Ministry of Climate, Energy and Building in particular.

Specifically, for the Low Carbon Transition in Energy Efficiency Project (LCEE), by creating the Green Investment Facility to support SMEs, we together with the Danish Ministry Ministry Climate, Energy and Building created an effective financial tool to promote investment projects for solutions to economical and efficient use of energy in enterprises.

This project supports businesses to access loans through a bank guarantee of 50% and a mechanism of bonus up to 30% of the total loan amount offered to whichever projects that  achieve their committed energy efficiency.

Thank you!

On June 18, the Vietnamese Ministry of Industry and Trade and the Danish Ministry of Climate, Energy and Building, signed a memorandum of understanding on strengthening cooperation in the field of energy savings in the industry and renewable energy.

Under this agreement, Denmark will assist to develop a new energy strategic analysis for the government of Vietnam. Accordingly, Vietnamese government agencies and research institutes will work together with experts from Denmark to build a comprehensive master model to analyze and optimize the energy system in Vietnam.

Then, on June 25, the Embassy of Denmark signed a cooperation agreement with 3 banks; Techcombank, BIDV and SCB. These are the lenders to participate in the program Green Investment Facility (GIF) under LCEE Project.

This agreement materializes the Green Investment Facility program, to support SMEs in upgrading production lines, improving their business efficiency, and to help reduce energy consumption and improve reliability for national energy security.

By now, about 90 enterprises all over the country have made contact for financial support from the LCEE project. Of these, 20 enterprises are instructed to complete the procedural forms and 8 companies are reviewed for the loan release.