SMEs receive 50% financial support for energy saving investment projects

Thursday, 2015-06-25 16:58:16
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Danish Ambassador to Vietnam John Nielsen (middle) and representatives from the MOIT, GIF, BIDV, Techcombank and SCB pose for a photo at the signing ceremony.
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NDO – Small and medium-sized enterprises (SMEs) can now access loans from the Bank for Investment and Development of Vietnam (BIDV), the Vietnam Technological and Commercial Joint Stock Bank (Techcombank) and the Saigon Commercial Bank (SCB) whereby they can receive 50% financial support via bank guarantee for energy saving investment projects.

The information is in accordance with an agreement signed in Hanoi on June 25 between the Embassy of Denmark in Vietnam and the three designated banks, which are committed to supporting SMEs with loans for energy efficiency investments under the support of the Danish Green Investment Facility (GIF).

The banks will work with the GIF and SMEs to verify qualified projects to which the Embassy will provide 50% financial support via a bank guarantee.

A special attribute of this mechanism is the energy savings award scheme in which businesses investing in energy saving solutions can earn rebates, from 10% to 30% of their total investment, on the total energy savings.

The financing mechanism came into effect January 2015 and will last until June 2017.

Danish Ambassador to Vietnam John Nielsen addresses the signing ceremony.

Speaking at the signing ceremony, Danish Ambassador to Vietnam John Nielsen noted that the support with an initial fund of US$6.5 million can facilitate SMEs’ access to capital sources to improve energy efficiency. He also expressed his hope that the model would be successful and repeated in the future in Vietnam, saying that Denmark via the GIF will support 100-130 projects before the end of 2016.

Nguyen Viet Son, Deputy Director of General Energy Directorate under the Ministry of Industry and Trade (MOIT) spoke highly of the Danish support, saying that the projects supported by GIF will not only result in improving the energy efficiency standards in SMEs but also provide valuable lessons for energy efficiency initiatives in larger sized companies, contributing to a greener economy.

Over the last five years, Denmark has provided nearly US$30 million in grant to support for Vietnam to increase sustainable energy usage. GIF is part of the overall support and designed to help SMEs improve their energy efficiency, and to promote clean and sustainable manufacturing in Vietnam.