On 20 October 2026 in Hanoi, the Department of Energy - Oil & Gas (Ministry of Industry and Trade) held the workshop “Consultation on the Energy Efficiency Promotion Fund”. At the workshop, Dr. Nguyen Thi Mai Anh, an expert from EEI, presented the objectives, operating principles and proposed roadmap for establishing the Fund.
Mr. Tran Thanh Tung, Acting Director of the Department of Energy - Oil & Gas (Ministry of Industry and Trade), attends the workshop.
Participants included representatives of ministries, sectors and localities, development partners, financial institutions, banks and the business community.
Speaking at the workshop, Mr. Dang Hai Dung, Deputy Director of the Department of Energy - Oil & Gas, Ministry of Industry and Trade, said: against a backdrop of continually rising energy demand for economic development and a volatile global energy market, energy saving and efficiency is increasingly important for the country and for every business. Improving energy efficiency helps ease supply pressure, reduce production and business costs, cut emissions and strengthen the competitiveness of the economy.
Law No. 77/2025/QH15, which amends and supplements a number of articles of the Law on Energy Saving and Efficiency, and Government Decree No. 30/2026/ND-CP have added provisions on the Energy Efficiency Promotion Fund (the Fund), creating the legal basis for building a financial support tool for this field.
The Fund is proposed to help remove these barriers. Positioned as a non-profit, off-budget state financial fund, it is expected to connect domestic and international resources and socialized funding, and to combine financial support with technical support, so that businesses have more opportunities to access concessional capital for effective energy-saving solutions.
Mr. Dang Hai Dung, Deputy Director of the Department of Energy - Oil & Gas, Ministry of Industry and Trade, delivers the opening remarks at the Consultation Workshop.
“Through this consultation workshop, I hope delegates will openly exchange views on the Fund’s organizational model, operating mechanism and capacity to mobilize resources. Forms of support need to match business needs and link technical support, project preparation and access to finance.
The Ministry of Industry and Trade sincerely listens to and will study the comments received in order to continue finalizing the dossier for establishing the Fund before submitting it to the Prime Minister for consideration and decision. The Ministry hopes to continue receiving the coordination of ministries, sectors, localities, development partners, financial institutions and the business community in the process of establishing and operating the Fund,” Mr. Dang Hai Dung emphasized.
At the workshop, delegates exchanged views and raised questions on matters related to the Energy Efficiency Promotion Fund.
Dr. Nguyen Thi Mai Anh, EEI expert
At the workshop, Dr. Nguyen Thi Mai Anh, EEI expert, said that the objective of the “Project to Support the Operationalization of the Energy Efficiency Promotion Fund” is to develop a complete, scientifically grounded and practically feasible design that serves as the basis for establishing and operating the Fund. Expected results include stronger readiness to roll out and operate the Fund, a financing mechanism and capital mobilization strategy, and clearly defined beneficiaries and access mechanisms.
Sharing key considerations when establishing and operating the Fund, Dr. Nguyen Thi Mai Anh also stressed that the Energy Efficiency Promotion Fund is an off-budget state financial fund operating on a non-profit basis. Its operating principles are socialization, financial independence, no overlap with the state budget, and minimal added cost for businesses. The Fund’s capital consists only of equity, mobilized capital and entrusted capital. Charter capital is allocated from public investment capital, following the public investment plan sequence. The state budget supports charter capital once the Fund meets three conditions, and operating costs are covered by the Fund’s own revenue. Mobilized capital must match repayment capacity, and foreign borrowing follows public debt law. The Fund does not take deposits or issue bank guarantees…
According to Dr. Nguyen Thi Mai Anh, the objectives for establishing the Fund are as follows:
First, financial independence, capital mobilization, wholesale lending, investment, support and receiving entrusted funds nationwide;
Second, efficient use of public resources, improving the effectiveness of state budget and grant funding, and promoting public-private cooperation;
Third, helping businesses compete in the green economy and meet CBAM, ETS and the green regulations of the EU, the US and Japan for exports;
Fourth, providing incentive tools, interest subsidies, technical support and market support for energy saving and efficiency projects;
Fifth, promoting technology transition to reduce energy intensity and expanding the energy consulting services (ESCO) market;
Sixth, serving as a policy tool that complements the financial market, neither replacing nor competing with credit institutions.
The Fund’s core functions include: capital mobilization, concessional lending, interest subsidies, technical assistance, market transformation and policy investment.
Recommendations and roadmap: In December 2026, submit to the Prime Minister for approval to establish the Fund under the Ministry of Industry and Trade; issue the Decision (5 articles) and the Regulation (47 articles, 6 chapters), effective 1 January 2027; from 2027 to 2029, assign the Ministry of Finance to allocate charter capital and operating budget, and the Ministry of Finance and the State Bank of Vietnam to appoint officials to the Management Board.
Mr. John Robert Cotton, Director of the Southeast Asia Energy Transition Partnership (ETP), speaks online at the workshop.
Speaking online at the workshop, Mr. John Robert Cotton, Director of the Southeast Asia Energy Transition Partnership (ETP), stressed the need to build a Fund model that is feasible, meets practical needs and unlocks investment capital for energy-saving projects.
According to him, Law No. 77/2025/QH15 and Decree No. 30/2026/ND-CP have created the legal basis for establishing the Fund. The current focus is on studying the organizational model, governance mechanism, capital mobilization options and suitable financial instruments, so that banks can lend with confidence and businesses can invest in projects that reduce energy consumption and production costs.
Through a technical assistance program running from September 2026 to August 2027, ETP will work with the Ministry of Industry and Trade to assess investment potential and financial barriers, and to propose the Fund’s financial design and operating mechanism. The goal is to provide a basis for the Government to consider and decide on establishing the Fund, aiming to mobilize resources from the state budget, commercial banks, development partners and climate finance.
“The contributions of stakeholders, especially banks and businesses at the workshop, are important in finalizing the Fund’s design, ensuring that the proposed financial mechanisms fit needs and can be implemented effectively in practice,” Mr. John Robert Cotton emphasized.
Mr. Do Manh Toan, National Coordinator, ETP, at the workshop
Sharing international experience and key considerations for operating the Fund, Prof. Dr. Abul Quasem Al-Amin of the Harvard Asia Center, Harvard University, said the Project had reviewed 5 funds in 5 countries: Thailand, India, Bulgaria, Malaysia and Tunisia. Two models were studied in depth: Thailand’s EERF operating model and Malaysia’s GTFS instrument model.
Accordingly, the lessons applicable to Vietnam are: separating technical eligibility, credit decisions and risk support (all five funds); lending through banks, with banks bearing credit risk (Thailand); technical support for audits, project preparation and capacity building (India, Bulgaria, Tunisia); and audited and publicly disclosed financial statements (India, Bulgaria).
Mr. Tran Tien Dong, Financial Institutions Division, Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV).
Sharing BIDV’s experience in managing entrusted lending from funds and projects, Mr. Tran Tien Dong of the Financial Institutions Division, Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), said that BIDV has experience implementing and managing entrusted capital from the Government and donors.
On experience serving domestic funds, BIDV is the bank chosen by many ministries, sectors and state agencies to help run off-budget financial funds, including the Vietnam Environmental Protection Fund; the Small and Medium Enterprise Development Fund; the National Foundation for Science and Technology Development; the National Technology Innovation Fund; and the National Data Development Fund…
BIDV’s service orientation for funds includes: receiving and deploying the Fund’s entrusted capital (co-developing mechanisms, receiving funds, appraisal, disbursement, recovery and reporting as regulated); and providing integrated account infrastructure and banking services (opening and managing accounts, currency management, disbursement, recovery, domestic and international payments, digital banking and reporting).
Mr. Tran Viet Nguyen, Deputy Head of the Business Department, Vietnam Electricity (EVN)
Sharing experience in implementing energy-saving investment projects under the ESCO model, Mr. Tran Viet Nguyen, Deputy Head of the Business Department of Vietnam Electricity (EVN), said that EVN’s ESCO operating model is an energy-saving project performance contract. ESCO contract forms include guaranteed-savings contracts and shared-savings contracts.
Alongside the advantages, there are difficulties in implementing ESCO, such as: a lack of legal framework for ESCOs and related regulations (ESCO company operations, methods for determining energy savings, ESCO contract dispute resolution, asset handover, and eligible users of ESCO services); limited communication; financial constraints; capital recovery risk; and ESCO market gaps (solutions, training, expert teams, technical support…).
EVN recommended: establishing the Energy Efficiency Promotion Fund; standardizing measurement and verification procedures; independent appraisal/assessment and a published list of qualified ESCOs; accounting guidance for units using the state budget; and the operation of a Vietnam ESCO association.
Overview of the workshop “Consultation on the Energy Efficiency Promotion Fund” in Hanoi.
The workshop gave delegates time to contribute views on the legal framework, international experience, fund management and the implementation of energy-saving projects. The views shared at the workshop are practical references for finalizing the dossier for establishing the Fund.
Source: VNEEP, 20/10/2026.
Image: VNEEP
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