VNF - A USD 102 million project was launched by the World Bank and the Ministry of Industry and Trade on March 5 to support industrial enterprises in applying energy conservation techniques.

Under this project, industrial enterprises are lent new loans to invest in energy saving technologies and optimize production, thereby reducing energy consumption and production costs, increasing capacity and overall competitiveness of enterprises in the domestic and international market.

With the support of the project, financial institutions and industrial enterprises will be able to set up and evaluate energy saving projects. This will create a new business area for financial institutions, which is to provide loans to support investments in energy savings in the industry, thereby expanding the scale of loans for industrial enterprises.

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"Vietnam's energy sector is facing many challenges due to limited domestic energy sources while high demand for electricity from growth," said Ousmane Dione, Country Director of World Bank in Vietnam. In this context, the promotion of investment in energy saving will bring many benefits, such as enhancing the competitiveness of Vietnam's industry, reducing greenhouse gas emissions and avoid investment in new coal power plants. "

Funds in the project will be provided to financial institutions, and these institutions will provide loans to industrial enterprises for investment in subprojects on energy savings.

Of the total USD 158 million, USD 101.7 million is from the World Bank. The remainder of the project comes from the Government of Vietnam, financial institutions and industrial enterprises./.

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