Vietnam Ministry of Industry and Trade proposes energy efficiency fund

The Vietnamese Ministry of Industry and Trade is developing a proposal to establish a fund to promote energy saving and efficiency. Designed as a non-profit state financial fund operating outside the national budget, the initiative aims to help businesses manage production costs and invest in technology to meet emission reduction requirements.

The fund is expected to have a charter capital of 500 billion VND, with state budget allocations planned for the 2027-2029 period. It intends to mobilize additional domestic, international, and socialized resources. Key functions will include providing preferential loans through credit institutions, interest rate subsidies, technical support, and energy auditing.

Under the proposed mechanism, the fund may allocate up to 10% of its annual accumulated charter capital for non-refundable support, such as interest rate compensation of 2% per year. For wholesale lending, the fund will provide preferential capital to credit institutions to be lent to businesses, with maximum loan terms of 10 years and grace periods of up to two years.