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Danish government sector program – Vietnam


This program brings Danish know-how and technology to Vietnamese businesses in their efforts to reduce greenhouse gas emissions. Technical assistance and a fund for small and medium size businesses (SMEs) will enable them to implement the best energy efficiency solutions for their business.

Together with new initiatives in the construction sector, the program will support Viet Nam’s efforts to integrate energy savings and environmental aspects in its economic growth.

Overview

The Governments of Viet Nam and Denmark have initiated a long term dialogue on low carbon transition within the energy sector in Viet Nam, specifically targeting energy efficiency initiatives. This dialogue builds on the present cooperation within energy efficiency under the climate change adaptation and mitigation program (2008-2015) which provides targeted budget support to the Viet Nam Energy Efficiency Program (VNEEP, 2006-2015).

This program consists of two components:

1) the first supports the Ministry of Industry and Trade (MOIT) in promoting energy efficiency in the SME sector with a focus on the brick, ceramic and at least one other sector to be decided upon.

2) the second provides support to the Ministry of Construction (MOC) in implementing the building codes for energy efficiency.

Support to SMEs in the chosen sectors is a priority for the VNEEP. SMEs account for 45% of the industrial energy use in Viet Nam and offer good prospects for energy efficiency savings and Green House Gas (GHG) emission reductions.

SMEs also play an important social and economic role and have the potential to contribute to the green growth and promotion of green jobs. They are relatively unsupported by other donors and, because of their small scale they offer a cost effective opportunity for physical improvements to be achieved in the three year period. Earlier experience shows that the brick and ceramic sectors show the greatest potential for scaling up energy efficiency of SMEs.

Support to energy efficiency to buildings through implementation of the building codes is selected because it offers a huge potential for energy savings and GHG emission reduction if building codes are enforced for new large buildings. This is a priority area for VNEEP and an area that is relatively unsupported by other donors (so far support has been focused on the development of the building code).

The building sector also offers good scope for developing a technical collaboration between the MOC in Viet Nam and the Ministry of Climate, Energy and Building (MCEB) in Denmark. In the longer term, should funding be available the component will lead to implementation of energy efficiency demonstration projects.

Objectives

SMEs

  • Five provincial governments have promulgated energy efficiency and conservation policies/programs and developed action plans to promote the application of energy efficiency and conservation technologies/measures within at least three sectors.
  • Between 500 and 1000 SMEs are aware of energy efficiency potential, technical solutions, sources of technical support and financial sources, within at least sectors.
  • Between 30 and 50 Service providers are strengthened in their capacity to provide energy efficiency services and financial consultancy within at least three sectors.
  • Between 150 and 250 energy efficiency projects in brick and ceramic and other sectors have been implemented.
  • Three demonstration projects of energy efficiency in at least one other sector implemented and disseminated to other enterprises within selected sector.
  • Two commercial partnerships initiated between Viet Nam and Denmark in at least one sector.

Construction

  • Mechanisms established for regulation
  • Capacity increased in MOC and related agencies for implementing the building code leading to gradual compliance for all new buildings by 2015.
  • A fundable proposal is presented for approval by GOV and EDK/MCEB by the end of the project.
  • A partnership mechanism is in place that will enable MOC and others to access state of the art policy and regulatory competence from Denmark within energy efficiency and low carbon transition in buildings.

Outputs and resources

For more information, see the program document.

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