Denmark and Vietnamese banks sign energy efficiency support

On June 25, 2015 The Danish Embassy, Vietnam signed an agreement with three Vietnamese banks to support energy efficiency initiatives for small and medium sized enterprises (SMEs).

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“Denmark and Danish companies have unique strongholds, know-how and advanced green technologies that match the current challenges in Vietnam. We hope that our support will help promote substantial energy efficiency initiatives in the private sector” said Danish Ambassador John Nielsen at the signing ceremony.

And there is reason to hope because according to the Agreement, SMEs can access loans from the three banks and receive 50% financial support via bank guarantee for energy saving investment projects. Furthermore companies that invest in such projects can earn rebates from 10% up to 30% of their total investment cost on achievement of the total energy savings.

SMEs operating in brick making, ceramics, and food industries can access loans from the appointed banks; , the Bank for Development and Investment of Vietnam, the Vietnam Technological and Commercial Bank, and the Saigon Commercial Bank. They are enabled to access additional funding worth half of their loans to pour into energy-efficient projects. A plus of the deal is that enterprises can redeem between 10 to 30 percent of their total investment based on the amount of energy they save.

The Ambassador concluded that he expects that Denmark will support 100-130 projects before the end of 2016 through the Green Investment Facility.

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