Vietnam has set a target of reaching net-zero CO2 emissions by 2050. At the same time, the country is experiencing strong growth in both its economy and energy consumption, particularly in the industrial sector. In fact, industry accounts for around half of the country’s total CO₂ emissions, equivalent to 287 million tons in 2022, most of which is tied to energy use. In comparison, Denmark’s total emissions in the same year were only 28 million tons. Vietnam thus holds significant potential for reducing emissions by improving energy efficiency in the industrial sector.

To realise this potential, Vietnam’s National Assembly has now adopted a new revised law on energy efficiency in industry, which will enter into force on 1 January 2026. The law was drafted with support and advice from experts at the Danish Energy Agency’s Centre for Global Cooperation.

Key elements of the new law include provisions for voluntary agreements with companies to screen for energy efficiency projects, a requirement for the government to establish a dedicated fund to support energy efficiency measures, and higher standards for energy audits in energy-intensive industries.

The law will help Vietnamese companies identify opportunities to reduce energy consumption, thereby lowering emissions from energy use. This is an important contribution to Vietnam’s green transition and to the global climate goals. In addition, efficiency improvements can reduce costs for companies and strengthen the competitiveness of the sector as a whole

Finally, the law marks a milestone in the long-standing cooperation between the Danish Energy Agency and Vietnam’s Ministry of Industry and Trade, showcasing how Danish experience with energy efficiency has been adapted to the Vietnamese context.