Energy costs of many industries account for more than 60% of product costs

VCN - The use of energy in Vietnam in enterprises' block and many fields have high energy intensity such as chemicals and construction materials (cement, ceramics). Energy costs for many industries and sectors of industrial production account for more than 60% of product cost.
2424-2429-20190312-151635-3
Son Ha Company is one of the enterprises that has applied many effective measures to save electricity. Photo: Thanh Nguyen

In Decision No. 280/QD-TTg of the Prime Minister dated March 13, 2019, on the National Programme on economical and efficient use of energy for 2019 - 2030 clearly states it must save 8-10% of the energy needed to develop the country under the normal development scenario, equivalent about 60 million tonnes of oil conversion.

The MoIT informed, in 2006 - 2015, Vietnam saved about 16 million tonnes of oil equivalent (TOE - tons of oil equivalent),about 103.7 billion kWh of electricity.

Although certain results have been achieved, according to experts, there are still many fields with high energy intensity such as chemicals in enterprises, construction materials (cement, ceramics); metallurgy (iron and steel production) and pulp and paper.

Information from the Ministry of Industry and Trade shows that energy costs for many industries/industrial production sectors account for more than 60% of product costs. The reason is that many firms are using old, outdated, and inefficient machines and equipment in terms of energy use.

Firms still have limited financial capacity to be able to transform technologies and techniques, replace old, outdated equipment with new, more energy-efficient lines.

Phuong Hoang Kim, Director of the Energy Efficiency and Sustainable Development Department (the MoIT) said that to achieve the target of saving from 8 to 10% of total energy consumption compared to under normal development until 2030, the involvement of local governments (People's Committees at all levels) is vital and decisive.

In the experience of some countries, it is necessary to base on the specific situation of each locality to assign a specific plan and attach the responsibility of the head.

In Vietnam, research by the World Bank and the MoIT on the ability to allocate national targets for energy saving to Vietnam's localities shows 63 provinces and cities can be divided into seven local groups with different energy-saving goals based on similar characteristics of energy-saving potential, economic structure, population characteristics.

Scientifically, it is possible to allocate the saving target of 8 - 10% of the whole country to each locality. On that basis, the MoIT together with localities defines annual and periodic targets for each province and city and attaches the responsibility of the local head to ensure implementation of the goal.

"It is necessary to carry out many solutions in parallel. Specifically, it is necessary to promote communication, raise awareness, improve the behavior of using electricity/energy for each specific target group; develop and organise the social/community rules, regulations on the behavior of using electricity/energy in each agency, organisation, business," Kim said.

From enterprises' perspective, the solution is to build and operate a fund to promote economical and efficient use of energy. The fund will be a place to provide preferential credits, open procedures to financially support businesses in technological innovation, replacing machines, equipment, and production lines towards efficiency in terms of energy usage and environmental protection.

By Thanh Nguyen/Dieu Huong

Related News

Proposal to change the application time of new regulations on construction materials import

Proposal to change the application time of new regulations on construction materials import

VCN - To comply with the circular on quality management of construction materials, many businesses importing this item are complaining about difficulties and asking for an extension of the implementation time.
Energy saving: The key to sustainable development for Vietnamese businesses

Energy saving: The key to sustainable development for Vietnamese businesses

VCN - Mr. Mach Dinh Khoa, Vice President of Business Strategy & Operations for Commercial Buildings at Schneider Electric, believes that energy saving is not only a trend but also a decisive factor for Vietnamese businesses to maintain their competitive edge. To achieve this goal, practical solutions, government support, and determination from the businesses themselves are crucial.
Dual goals in managing chemicals and precursors

Dual goals in managing chemicals and precursors

VCN - Playing an important role in the production activities, the demand for import and export of chemicals and precursors has been increasing. But these items also pose a potential risk of abuse for illegal purposes. Therefore, the Customs has been implementing many solutions to ensure management efficiency while still facilitating businesses in the import and export activities.
Opportunities to develop a smart and sustainable packaging industry

Opportunities to develop a smart and sustainable packaging industry

VCN - The concept of circular economy and sustainability requirements are increasingly influencing packaging design. In particular, highly recyclable packaging is gradually becoming an important part of the packaging process in the food and beverage industry. This is also one of the key factors promoting the development of Vietnam's packaging industry.

Latest News

US emerges as biggest consumer of Vietnam’s pepper

US emerges as biggest consumer of Vietnam’s pepper

Vietnam exported 235,335 tonnes of pepper, including 207,498 tonnes of black pepper and 27,837 tonnes of white pepper, in January - November to earn 1.22 billion USD, with the US being the biggest importer, according to the Vietnam Pepper and Spice Association (VPSA).
Why are seafood exports to some Middle Eastern countries blocked?

Why are seafood exports to some Middle Eastern countries blocked?

VCN - Many seafood export shipments to some Middle Eastern countries have had their documents returned by the Consular Department due to the nightmare of consular legalization procedures, leading to a blockage in exports to these markets.
Seafood exports increase competitiveness through quality

Seafood exports increase competitiveness through quality

VCN - The "wave" of orders from a number of large markets and increased consumption demand in the coming months will be the driving force to accelerate seafood exports at the end of the year. Not only racing to increase exports, Vietnamese seafood also increases its competitive advantage by focusing on product quality, seed sources, green transformation in the production process...
Textiles, footwear enterprises need support to green the supply chain

Textiles, footwear enterprises need support to green the supply chain

VCN- As one of the world's leading textile, garment and footwear exporting countries, Vietnam is facing many opportunities as well as challenges in response to strict customer regulations in "greening" production, including a number of commitments such as implementing social and environmental responsibilities and reducing emissions...

More News

Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam's seafood industry is on a roll, with export momentum propelling it toward the 10 billion USD target for 2024, laying robust groundwork for 2025.
Opportunities for export breakthroughs through e-commerce

Opportunities for export breakthroughs through e-commerce

VCN - According to Mr. Nguyen Van Thanh (in photo), Director of the E-commerce Development Center - Department of E-commerce and Digital Economy (Ministry of Industry and Trade), developing national e-commerce programs and fostering international cooperation are key to effectively harnessing Vietnam's potential in this area, thereby enhancing competitiveness and promoting sustainable development in the global market.
Will textile and garment exports be affected by Trump 2.0 policy?

Will textile and garment exports be affected by Trump 2.0 policy?

VCN - That was one of the topics of interest at the press conference of the Vietnam Textile and Apparel Association (VITAS) held on November 19.
Vietnam, US strengthen supply chain cooperation in global marketplace

Vietnam, US strengthen supply chain cooperation in global marketplace

The 2024 Vietnam-US Cooperation Forum, held in Ho Chi Minh City, focused on new US policy directions and opportunities to enhance bilateral economic and trade relations.
Over 218,500 enterprises established, resume operations in 11 months

Over 218,500 enterprises established, resume operations in 11 months

More than 218,500 enterprises were established and resumed operations in Vietnam in the past 11 months of 2024, a year-on-year increase of 7.4%, according to the General Statistics Office (GSO).
Textile and garment exports optimistic thanks to market opportunities

Textile and garment exports optimistic thanks to market opportunities

VCN - The diversification strategy and the shift in orders from brands have brought positive results to the Vietnamese textile and garment industry in 2024 and created a solid foundation for the 2025 target.
Vietnam attracts nearly 31.4 billion USD in foreign investment in 11 months

Vietnam attracts nearly 31.4 billion USD in foreign investment in 11 months

Total registered foreign direct investment (FDI) into Vietnam, including new and additional investments, and capital contributions via share purchases, reached 31.4 billion USD in the first 11 months of 2024.
Rice exports to set record of 9 million tonnes this year

Rice exports to set record of 9 million tonnes this year

Rice exports are likely to hit a record high of 9 million tonnes in 2024, given a total volume of nearly 8.5 million tonnes shipped abroad in the first 11 months, according to insiders.
Three goals, seven tasks for the logistics industry to accelerate

Three goals, seven tasks for the logistics industry to accelerate

VCN - Speaking at the Vietnam Logistics Forum 2024, Prime Minister Pham Minh Chinh pointed out 3 goals and 7 groups of tasks for the logistics industry to accelerate development in the new situation.
Read More

Your care

Latest Most read
US emerges as biggest consumer of Vietnam’s pepper

US emerges as biggest consumer of Vietnam’s pepper

Vietnam exported 235,335 tonnes of pepper, including 207,498 tonnes of black pepper and 27,837 tonnes of white pepper, in January - November to earn 1.22 billion USD, with the US being the biggest importer, according to the Vietnam Pepper and Spice Association (VPSA).
Why are seafood exports to some Middle Eastern countries blocked?

Why are seafood exports to some Middle Eastern countries blocked?

Many seafood export shipments to some Middle Eastern countries have had their documents returned by the Consular Department due to the nightmare of consular legalization procedures
Seafood exports increase competitiveness through quality

Seafood exports increase competitiveness through quality

The "wave" of orders from a number of large markets and increased consumption demand in the coming months will be the driving force to accelerate seafood exports at the end of the year.
Textiles, footwear enterprises need support to green the supply chain

Textiles, footwear enterprises need support to green the supply chain

VCN - Mr. Le Xuan Thinh - Director of Vietnam Cleaner Production Center (VNCPC) said that textiles, garments and footwear have now deeply participated in the global value chain, textile products have been exported to more than 100 markets.
Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam’s seafood export hits 1 billion USD mark for October

Vietnam's seafood industry is on a roll, with export momentum propelling it toward the 10 billion USD target for 2024, laying robust groundwork for 2025.
Mobile Version