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Vietnam Modifies the Law on Economical and Efficient Energy Use

Vietnam amended and added to several elements of the Law on Economical and Efficient Use of Energy (Law No. 50/2010/QH12) on June 18, 2025, with the promulgation of Law No. 77/2025/QH15. On January 1, 2026, this amendment (henceforth referred to as “the Amendment Law”) will go into force. It proposes new rules and changes pertaining to facility energy management and product energy labelling.

The introduction of new definitions

The Amendment Law adds definitions for several terms:

• High Energy Efficiency Level: To encourage energy-saving behaviours, the appropriate authority sets a level of efficiency for energy-consuming devices and systems for a given time frame.

• Energy-Saving Products: Items that fulfil requirements established by the appropriate government and lower energy consumption, such as thermally insulated building materials and high-efficiency equipment.

• Energy Service Providers: Organizations that, under contractual agreements, provide financial and technical assistance for energy-saving and efficiency initiatives.

• Energy Performance Contract: An agreement between a client and an energy service provider that establishes terms of payment contingent on the execution of efficiency and energy-saving initiatives.

• Energy Manager Certificate: This credential is given by the Ministry of Industry and Trade to people who finish certain training and meet requirements.

National Energy-Saving Policy

The government will:

• Encourage businesses that produce high added value with low energy and natural resource consumption and bolster regulatory control over energy-intensive industries.

• Promote training to improve professional skills and keep knowledge current for individuals, organizations, energy auditors, and facility energy managers.

• Encourage facilities and governmental agencies to enter into voluntary agreements about energy efficiency.

• Include energy efficiency metrics in strategies for socioeconomic growth at the municipal, national, and corporate levels.

 

Energy Use Statistics

The government, not the Ministry of Industry and Trade, will publish energy-use statistics under the Amendment Law.

Sector-Specific Energy Use Standards

Article 9(3) states that, except for building materials manufacture, which is under the purview of the Ministry of Construction, the Ministry of Industry and Trade would establish energy use requirements for every industrial sector. There are already two pertinent regulations in effect:

• Circular No. 28/2024/TT-BCT: Reporting and Methodology for Energy Use Standards in the Production of Beer and Non-alcoholic Beverages.

• Circular No. 29/2024/TT-BCT: Guidelines for energy use in the production of plastics.

Regulation of High-Energy-Use Facilities

According to Article 32, provincial People’s Committees must report to the Ministry of Industry and Trade each year with a list of high-energy-use facilities within their purview. These facilities must maintain measuring equipment, follow the ministry’s energy management model, and track energy use with precise data, including creating energy balance sheets, according to Article 33(1).

Responsibilities of Energy Managers

Energy managers are newly tasked with monitoring and managing energy demand and usage standards.

Energy Labelling Requirements

Article 39 introduces new provisions:

• Energy labels and pertinent energy use data must be shown on building materials.

• Following testing and assessment for compliance with national energy efficiency standards, manufacturers, importers, distributors, and sellers (including e-commerce platforms) are required to label and publish information regarding equipment and materials, including building materials.

Incentives for Energy-Saving Activities

The Amendment Law introduces the following incentives:

• The creation of a nationwide non-profit funding fund to encourage energy-saving initiatives.

• Preferential treatment for new energy-saving or greenhouse gas-reduction-related investments, improvements, and expansions, including assistance with technology, financing (via the fund), and land use (see Article 41(2)).

• Using tools like green finance and green bonds to encourage investment and the shift to low-carbon, energy-efficient products and technology.

Development of Energy Service Businesses

The Amendment Law supports the development of energy service businesses through:

• Allowing direct investment in energy-saving measures and performance contracts, in addition to advisory services; • Broadening their purview to include training for energy auditors and energy managers.

• Support from the government for operating and investment conditions for companies that provide energy auditing and services.

• Inspections, technical specifications, notification formats, and the posting of service provider lists on the Ministry of Industry and Trade’s website are all under its supervision.

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