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IFC Helps Vietnam Save Energy in New Buildings

Hanoi, Vietnam, October 23, 2013 —The Investment Climate Advisory Services of the World Bank Group is supporting Vietnam’s Ministry of Construction in implementing a new Building Energy-Efficiency Code to help reduce energy costs and greenhouse-gas emissions in the country’s fight against climate change.
About 36 percent of Vietnam’s electricity is spent on building construction and maintenance, and this contributes to a 12 percent increase in the country’s greenhouse-gas emissions annually, which is among the highest growth rates in the world. The new code, which will take effect from November 15, is part of the Vietnamese government’s measures to achieve its target of reducing greenhouse-gas emissions by 8 to 10 percent between 2011 and 2020.
“The code marks a policy improvement in enforcing energy efficiency in buildings,” said Nguyen Trung Hoa, director of the Department of Science, Technology and Environment at the Ministry of Construction. “The code is highly feasible and will help significantly reduce energy consumption in Vietnam’s new buildings in the coming years.”
Under the new code, building owners will have to follow compulsory energy-efficiency requirements, and construction authorities will evaluate building plans based on these requirements before granting permits to the developers. Energy-efficiency requirements and regulations will be applied to building components such as lighting, air conditioning and ventilation systems, lifts, and heating. The code covers hospitals, hotels, offices, residential and retail buildings, and schools with a total floor space of 2,500 square meters or more.
IFC is working with the Ministry of Construction to develop clear guidelines and provide training for developers, evaluators, and other building professionals to improve their ability in implementing the new code over the next four years. IFC will also showcase the benefits of green buildings to investors by advising developers on constructing model buildings that follow the code’s specifications.  
“IFC’s baseline survey on Vietnamese buildings shows that compliance with the code’s energy-efficiency requirements could help save around 15 to 20 percent of the buildings’ energy consumption,” said Wendy Werner, investment climate advisory services manager for East Asia and the Pacific at IFC, a member of the World Bank Group. “This will significantly reduce the operating costs of buildings and put Vietnam on a low-carbon economic growth path.”
IFC’s work with the Ministry of Construction in promoting energy efficiency in the building sector is supported by Switzerland’s State Secretariat for Economic Affairs, or SECO.
About the Investment Climate Advisory Services of the World Bank Group
The Investment Climate Advisory Services of the World Bank Group helps governments implement reforms to improve their business environment, and encourage and retain investment, thus fostering competitive markets, growth and job creation. Funding is provided by the World Bank Group (IFC, MIGA, and the World Bank) and more than 15 donor partners working through the multidonor FIAS platform.
About IFC
IFC, a member of the World Bank Group, is the largest global development institution focused exclusively on the private sector. Working with private enterprises in more than 100 countries, we use our capital, expertise, and influence to help eliminate extreme poverty and promote shared prosperity. In FY13, our investments climbed to an all-time high of nearly $25 billion, leveraging the power of the private sector to create jobs and tackle the world’s most pressing development challenges. For more information, visit www.ifc.org .
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