The World Bank in Việt Nam announced on Monday that the bank’s board of executive directors had approved a US$102 million loan to the Vietnamese Government to support enterprises in adopting energy-efficiency technologies and practices.

Under this project, industrial enterprises can access new credit to fund their purchases of energy efficiency and production-optimisation technologies, thus reducing energy consumption and production costs and increasing overall competitiveness in the domestic and international markets.

With support of the project, financial institutions and enterprises will be able to prepare, evaluate and appraise energy efficiency projects. Financial institutions can provide loans to support industrial energy efficiency investments, which will enable them to scale up energy efficiency lending to industries.

“We are committed to supporting Việt Nam’s drive to meet its future energy demand, and improving energy efficiency is the single best and cheapest option because it will help consumers save energy and reduce the need for new thermal power generation, while also reducing pollution and mitigating the risks of climate change,” Ousmane Dione, World Bank’s country director for Việt Nam, said. “If stronger programmes and policies are put in place, businesses would also have an incentive to cut down on wasteful practices and adopt more energy-efficient technologies.”

Funding under this project will be provided to participating financial institutions, which will then lend to industrial enterprises to invest in energy-efficient subprojects. — VNS

 

Source link

About the author

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Vietnam to Commercialize 5G: What Should Investors Expect

The digital economy plays a pivotal role in facilitating Vietnam’s socio-economic development strategy, expected to contribute 7 percent of GDP in 2025 and 7.5 percent by 2030. Contributing to this, 5G is projected to create US$13.1 trillion and two million new jobs by 2035.

Vietnam Increases weekly Overtime Hours quota to 60 hours

Vietnam’s National Assembly passed a Resolution on March 23 to increase overtime working hours from the current 40 hours to 60 hours a month. However, the total number of overtime working hours cannot exceed 300 hours annually.

Why Manufacturing is Driving Vietnam’s Growth

In 2020, the manufacturing and processing sector continued to take the lead in the country’s foreign direct investment (FDI), making up 58.2 percent of the total. With its contribution, Vietnam’s economy is forecast to regain momentum and reach GDP growth of 6 to 6.5 percent in 2022.