Natural Resources & Energy

Managing operational status of core equipment at an Ironworks

Although Viet Nam is currently enjoying a period of sustained economic growth, this has brought about serious problems in the form of energy and power shortages. In response, the Vietnamese government requested the support of Japan to promote energy-saving measures along with energy development.

In line with this request, JICA initiated the Study on the Master Plan for Energy Conservation in 2008.

Toward the Realization of a National Goal for Energy Conservation

Viet Nam, which shifted to a market economy following the Doi Moi Policy in 1986, has witnessed rapid economic development and a steady increase in trade with Japan and direct investment from Japanese companies. Energy consumption ballooned almost five-fold in 2005 relative to 1990, however, along with this economic advancement. Guaranteeing energy has become a major challenge. Planned power cuts have even been employed to combat the power shortage.

A workshop in Da Nang

The Vietnamese government issued the Decree on Energy Efficiency and Conservation in 2003, which made it compulsory for large factories to submit a report on energy management. The Viet Nam National Energy Efficiency Program was formulated in 2006 and quantitative targets set.

Measures to promote energy conservation were not implemented systematically, however, while there were shortages in personnel to advance the policies and also in know-how. The efforts thus proved fruitless.

Upon a request from the Vietnamese government, JICA began providing support through the Study on the Master Plan for Energy Conservation between 2008 and 2009, which made use of knowledge accumulated by Japan in energy conservation policy.

Support through Action Plan and ODA

As part of devising the master plan, JICA devised a roadmap and action plan toward realizing the goals of the Viet Nam National Energy Efficiency Program. Specifically, these goals were a 3-5% reduction in energy consumption by 2010 and a 5-8% reduction by 2015. The aim for JICA was to set down concrete steps to promote energy conservation.

JICA dispatched a study group to hold workshops in Hanoi, Ho Chi Minh and Da Nang, which enabled interaction with energy conservation related officials in Viet Nam. The study group provided guidance on how to diagnose levels of energy conservation in a factory or building as well as techniques to actually reduce energy consumption. Vietnamese officials also received training in Japan and an action plan was compiled in September 2009. This included three key strategies: the introduction of an energy management system; a labeling framework, in which stars are put on products featuring outstanding energy-saving properties; and management of data related to energy consumption. By implementing these strategies, it is believed that Viet Nam can achieve its 2015 targets.

Training in Japan includes lectures and a tour of a thermal power station given by company employees.

JICA also started the Energy Conservation and Renewable Energy Promoting Project in 2009 to proliferate energy-saving equipment through an ODA Loan with the aim of helping Viet Nam achieve its energy conservation targets. This project targets high-energy-consumption industries such as steel, cement, food processing and textiles, and seeks to reduce energy by introducing equipment enabling the reuse of heat, steam and gas generated in production processes.

Following on from a similar project in Indonesia, JICA began investigating a Support Program to Respond to Climate Change for Viet Nam, which is expected to provide solid backing for the energy conservation project by reducing greenhouse gases.