Danish energy efficiency investments to benefit SMEs

June 29, 2015 | 12:31

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The Danish Embassy last week signed agreements with three leading Vietnamese banks to support energy efficiency investments among small and medium-sized enterprises in Vietnam.

Under the agreements, the three lenders, namely the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), Sai Gon Joint Stock Commercial Bank (SCB) and Vietnam Technological and Commercial Joint Stock Bank (Techcombank), will provide loans for small and medium-sized enterprises (SMEs) operating in the brick, ceramic and food processing industries to carry out energy efficiency initiatives with support from the Danish Green Investment Fund (GIF).

Addressing the signing ceremony, Danish Ambassador to Vietnam John Nielsen stated that taking the lead in the global promotion of green growth, Denmark is eager to assist Vietnam in dealing with its current challenges related to energy efficiency. "We see a big demand for funds for energy efficiency among SMEs and we hope that our support will promote energy efficiency initiatives in the private sector," Nielsen stressed.

Nguyen Viet Son, deputy director general of the General Department of Energy under the Ministry of Industry and Trade, told VIR that Denmark's support would not only help improve the standards on energy efficiency in the private sector but also promote such investments among powerful groups.

Over the past five years, Denmark has provided nearly $30 million for Vietnam to increase people's awareness about energy efficiency and promote green and sustainable production.

The GIF was established from the initial investment of $6.5 million, following a memorandum of understanding in June 2014, and has been constantly and actively seeking to benefit Vietnamese SMEs.

Nielsen hopes that through the GIF, Denmark will support 100-130 projects by the end of 2016.

By By Bich Thuy

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