The Law on the Law amending and supplementing a number of articles of the Law on Effective and Effective Energy use is submitted to the National Assembly for consideration at the 9th session (May 5, 2025). Two focus proposals are the establishment of funds to promote economical and efficient use of energy and complete the legal framework for the Energy Service Enterprise (ESCO) model that is expected to remove financial and technical "knots" in energy movement in Vietnam.
Fund to promote energy-saving and efficient use: Financial mechanism for businesses not to be alone in green transformation
According to the Ministry of Industry and Trade, most businesses - especially small and medium-sized enterprises - are currently having difficulty accessing loans to renovate production lines, high-performance equipment or convert technology.Meanwhile, "green" regulations from export markets such as CBAM (EU) or energy labeling standards are creating increasingly great pressure.
This draft law proposes to establish a Fund to promote energy-saving and efficient use in the direction of operating independently of the budget, capable of mobilizing socialized capital and financial support through credit guarantees, co-sponsorship, and granting seed capital for energy-saving projects.
The Ministry of Industry and Trade affirmed that this is not a traditional "disbursement fund", but operates according to market mechanisms, taking investment efficiency as a measure.The fund can also be piloted in some localities before expanding nationwide.
The establishment of a Fund to promote energy-saving and efficient use not only supports businesses to meet international environmental requirements but also promotes the energy-saving market - a potential field but lacking financial "support".
ESCO: Enterprises lead transformation through energy-saving contracts
In addition to finance, the draft law also focuses on the development of the energy service market through the lawization of ESCO enterprise model.This type of enterprise provides a package solution: from surveys, design, equipment installation to operation, maintenance and measurement of energy saving efficiency for customers.
The draft supplementary terms related to ESCO service business conditions, EPC contract framework (Energy Performance Contracting), responsibility of the monitoring and standardization agency of savings measurement tools.
The ESCO model law is expected to transparent the market, reducing legal risks and increasing trust for businesses and banks.This is the foundation for attracting private investment on energy saving - instead of depending entirely on the budget.
According to the representative of the drafting board, the ESCO market in Vietnam is still small, fragmented and lacks legal protection mechanism.If the law is approved, this will be the first time this field has a clear legal corridor for professional development.
