Vietnam is intensifying efforts to improve energy efficiency as part of a broader strategy to strengthen energy security and support sustainable economic growth. A new government directive calls for stronger action to reduce energy consumption, accelerate the transition to cleaner energy and expand electric transport. Businesses across sectors are responding by adopting new technologies, energy management systems and operational reforms that reduce costs while lowering emissions.
According to guidance issued by Vietnam’s government on strengthening energy efficiency, global geopolitical tensions and disruptions to major energy supply routes have created price volatility and supply risks. For countries that rely partly on imported energy, including Vietnam, reducing consumption and improving efficiency has become a strategic priority to protect economic stability and national energy security.
The directive, issued on 21 March 2025, emphasises that efficient energy use can help lower production costs, improve competitiveness and support the country’s long‑term sustainability goals. It also aligns with wider economic reforms in which technological adoption and digital innovation are transforming industries, as seen in initiatives where AI is accelerating business growth and digital transformation in Vietnam.
Industrial Sector Adopts Practical Energy‑Saving Measures
Large manufacturing firms have begun implementing practical energy‑saving models that combine technical upgrades with cleaner energy sources. These initiatives not only reduce operational costs but also strengthen competitiveness in energy‑intensive sectors.
In the steel industry, Hoa Phat Group has implemented multiple efficiency and clean‑energy projects at the Hoa Phat Dung Quat Steel Integrated Complex. The company recovers waste heat and coal gas generated during coke production and steelmaking to generate electricity, supplying around 90% of the complex’s electricity demand.
“Nhờ đồng bộ các giải pháp như thu hồi nhiệt dư, công nghệ dập cốc khô, đúc – cán liên tục và điện mặt trời, Thép Hòa Phát Dung Quất hiện tự chủ khoảng 90% điện năng, qua đó giảm chi phí và nâng cao sức cạnh tranh.” — Hoàng Ngọc Phượng, Phó Giám đốc Công ty Cổ phần Thép Hòa Phát Dung Quất
Other manufacturers are introducing targeted efficiency upgrades. Viet Y Steel has installed variable frequency drives for furnace ventilation systems, cutting electricity consumption by 30–40%. The company has also segmented its drive systems, allowing independent start and stop operations across production stages to reduce energy losses.
Beyond energy efficiency, the company invested more than VND20 billion in a sulphur dioxide (SO2) treatment station to reduce emissions and strengthen environmental protection. Plans are also under way to upgrade combustion systems and gradually transition to cleaner fuels.
Smart Energy Management in Buildings and Infrastructure
Energy efficiency improvements are also being implemented in commercial buildings and public infrastructure. Organisations are increasingly adopting intelligent building management systems and internationally recognised standards such as ISO 50001 to monitor and optimise energy consumption.
The headquarters building of Vietnam Electricity (EVN) illustrates this approach. Designed to maximise natural lighting and ventilation, the facility uses heat‑insulated glass, temperature‑resistant materials and a central air‑conditioning system equipped with inverter chillers, chilled‑water pumps and high‑efficiency cooling towers.
“Tòa nhà được thiết kế tận dụng ánh sáng, thông gió tự nhiên, kính cách nhiệt và vật liệu chống nóng kết hợp hệ thống điều hòa trung tâm với chiller biến tần, bơm nước lạnh, tháp giải nhiệt hiệu suất cao và phần mềm quản lý tòa nhà thông minh BMS giúp tự động điều chỉnh hoạt động thiết bị theo nhu cầu thực tế, tiết kiệm điện năng đáng kể.” — Nguyễn Quang Hậu, Trưởng phòng Quản lý vận hành tòa nhà, Ban Quản lý dự án đầu tư xây dựng và công nghệ EVN
EVN has also replaced more than 5,800 T8 fluorescent lamps with energy‑saving LED lighting and implemented ISO 50001 energy management practices. These measures contributed to the building receiving first prize for energy efficiency in construction from the Ministry of Industry and Trade in 2024, alongside a five‑star green energy building certification from the city of Hanoi.
Industry Investment Supports the Green Transition
Energy‑intensive sectors such as cement and metal processing are also investing in efficiency upgrades and alternative fuels. Quán Triều Cement Joint Stock Company in Thái Nguyên has installed variable frequency drives across high‑consumption equipment and is developing a waste heat recovery power generation project that is expected to be completed by 2028.
The company is also gradually replacing fossil fuels with industrial plastic waste in clinker production to reduce coal use. Similar initiatives are emerging across the manufacturing sector, reflecting a wider shift towards technological modernisation, comparable with trends seen in sectors where digital technologies are reshaping Vietnam’s food industry.
Steel manufacturer Ton Dong A has likewise implemented energy audits to identify efficiency improvements. The company installed inverter systems for cooling pumps and automated controls to optimise energy use. It has also deployed a rooftop solar power system with a capacity of 3.4 MW to supply renewable energy to its production operations.
Energy Saving as a Societal Norm
While industrial improvements are central to Vietnam’s strategy, policymakers emphasise that behavioural change across society is equally important. From households to offices and factories, efficient electricity use is increasingly viewed as a factor influencing economic competitiveness and environmental responsibility.
In major urban areas, widespread adoption of energy‑saving habits can reduce peak electricity demand, ease pressure on power infrastructure and limit the need for costly grid expansion. Over time, embedding energy efficiency into everyday behaviour—supported by policy incentives and public awareness—could help Vietnam advance its goals of green growth, sustainable development and long‑term energy security.
