Viet Nam Promoting Energy Conservation in Small and Medium Enterprises


Over the past decade, Viet Nam has taken important legal and institutional measures to protect its environment and conserve its natural resources with a comprehensive Environment Protection Law that was enacted in 1993; and the Energy Conservation and Energy Efficiency (EC&EE) Degree (Decree 102) that were enacted in 2003. However, the lack of necessary capacity and awareness in energy conservation and energy efficiency are the main reasons that explain why under a baseline scenario, the efforts on energy conservation in SME in Viet Nam will continue to be promoted in a fragmented, inadequately funded and inadequately coordinated manner through the various central and local programs of various agencies.

The Project “Viet Nam Promoting Energy Conservation in Small and Medium Enterprises” (PECSME) is an integrated set of activities designed to address in a holistic fashion the barriers to widespread adoption of energy conservation measures and practices in Viet Nam’s SME sector. Through this intervention, UNDP aims to support economic growth that take into account environmental protection and rational use of natural resources for poverty reduction. The project will achieve its objectives through programs with existing SME infrastructure support providers on: policy and institutional support development; communications and awareness; technical capacity development; energy efficiency services provision support; financing support; and, demonstrations.

It will contribute to the transformation of Viet Nam’s SMEs from highly energy inefficient and polluting to energy efficient with greatly reduced pollution through the operation of a carefully selected mix of barrier removal activities implemented by government agencies, financial institutions, education providers, NGOs and mostly energy efficiency service providers (EESPs).

The main and direct beneficiaries of the project are: SMEs in five sub-sectors, namely brick, ceramics, textiles, paper and food processing; energy efficiency services providers; energy efficiency equipment manufacturers; and, local communities in the ceramic and brick making areas. Other stakeholders, namely MOST, ASMED, SMEPC, MOI, MOF, local government agencies, banking institutions, environment protection funding institutions, NGOs and technical universities and colleges will also benefit through capacity building and technical assistance.

What are the project's key results?

  • Policy advice and recommendations on public policies provided to MOF.
  • Improvement of strategies and plans, enhancement of role and functions and social equity and economic efficiency of the public finance system.

Finance, Executing and Implementing Agency

Project Number Funding Executing Agency Implementing Agency
00040025 US$5.5 million from the Global Environment Facility, and US$23.3 million of National co-financing Ministry of Science and Technology (MOST) Department of Science and Technology in All Economic Sectors

Delivery in Previous Fiscal Year

Year Delivery (USD)
2006 699,060
2007 1,262,108
2008 1,756,966
2009 642,554
2010 677,728
2011 317,437

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