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Vietnam’s Politburo to Make Energy-Saving Targets Mandatory for All Industries and Regions

  • Writer: KBC-LINK Editor
    KBC-LINK Editor
  • Sep 5
  • 2 min read

Vietnam’s Politburo has announced plans to make energy-saving targets mandatory for each industry and region, applying energy efficiency standards to equipment, machinery, and buildings. This move marks a significant step toward the country’s goal of achieving “net zero” by 2050, while also strengthening national energy security and reducing greenhouse gas emissions.

Note: “Net zero” means that the total amount of greenhouse gases released is balanced by the amount removed from the atmosphere, such as through renewable energy use or carbon absorption measures.

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Based on the national vision toward 2045 and Resolution No. 70, the Politburo has set the following targets to be achieved by 2030:

  • Reduce energy consumption by 8–10% compared to the business-as-usual (BAU) scenario

  • Cut greenhouse gas emissions by 15–35% 


This will help ease the burden on the power grid, promote more efficient use of resources, and contribute to achieving carbon neutrality by 2050.

Note: “Carbon neutrality” means that greenhouse gas emissions are balanced by offsetting measures, such as carbon credits or tree planting, rather than fully eliminating emissions as in “net zero.”

 

Key Points:

  • Mandatory energy-saving targets: Specific goals will be set for each industry, sector, and region.

  • Technical standards: Energy efficiency requirements will be applied to machinery, transportation, and buildings, with low-efficiency and high-emission models phased out.

  • Transport sector: Fuel economy labels and energy ratings will be required for cars and motorcycles. Hanoi and Ho Chi Minh City plan to begin emissions testing in 2027.

  • Buildings: Energy-saving measures will be mandatory for buildings with annual energy consumption of 200–300 TOE or more.　

Note:Consuming energy equivalent to 200–300 tons of crude oil per year. One ton of crude oil (about 1,000 liters) provides roughly enough energy to cover one year of electricity for 4–5 average households.

  • Carbon market development: Introduction of a carbon tax, emission caps, and credit trading mechanisms, with pilot implementation scheduled within this year.

 

Additionally, the Politburo encourages companies to adopt carbon capture, utilization, and storage (CCUS) technologies, invest in high-efficiency technologies, actively leverage private and foreign capital, and make use of ODA and JETP (Just Energy Transition Partnership) programs.

 

Background and Changes:

Under the previous Resolution 55/2020, the application of energy efficiency standards was limited to energy-intensive industries such as steel and cement manufacturing. Resolution No. 70 expands these standards to a broader range of sectors, including transportation and buildings, while introducing mandatory regulations and clearer responsibilities.

KBC-LINK Perspective:

  • For Japanese and foreign companies: Demand for energy-saving equipment and environmental technologies is expected to grow, presenting opportunities for market entry and investment.

  • For Vietnamese companies: Compliance with energy efficiency standards may increase costs, but could strengthen long-term competitiveness.

  • From a policy perspective: Early development of the carbon market will be key, particularly testing the responsiveness of energy-intensive industries.


Sources:


Edited by: KBC-LINK Editorial Team

 
 
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