Vietnam Ripe for Energy Saving Industry

IN VIETNAM power outages are becoming more frequent, so many enterprises are looking to use energy-saving technologies and products.

Experts are hence predicting that the trend is set to strengthen the country’s energy saving businesses.

Huynh Kim Tuoc, director of the Ho Chi Minh City Energy Conservation Center, said saving power helps not only generate more profits for firms but also eases the energy demand across the country.

Earlier this month, Electricity of Vietnam, the nation’s power utility, warned that the country will fall short of its power needs by as much as 3-4 billion kilowatt-hours (kWh) this year due to serious water shortages in major hydropower plant reservoirs.

Tuoc added that with more and more businesses expressing interest in energy-saving, he foresees the appearance of many energy services companies (ESCO) in Vietnam soon.

A Law on Energy Efficiency and Conservation, which became effective this year in Vietnam, will also encourage the development of ESCO.

The partly private Techcombank has recently launched an offer under which enterprises can obtain loans of up to 70 percent of the value of their energy-saving projects at 15- 17 percent interest rates for a maximum term of seven years.

Earlier, VietinBank had coordinated with the Ministry of Science and Technology to carry out the Promotion of Energy Conservation in Small and Medium-sized Enterprises (PECSME) project. Primarily lending to firms in brick-making, ceramics, paper, garment and textile and the food processing sectors. Sa far the total loans provided have been around $14.1 million.

According to the Ministry of Industry and Trade, Vietnam saved more than 1.18 billion kWh of electricity last year, 42 percent more than its target, accounting for 1.4 percent of national output.

Electricity of Vietnam revealed that the country expects to save one billion kWh of power this year, or 1 percent of production.

Picture by Hulivili

Monday 24th January 2011

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