Promoting Energy Conservation in Small and Medium Enterprises (PECSME)
Policy measure

According to Vietnam Economic News (2010), the Hai Phong Center for Science and Technology Research and Application has provided consultancy services and carried out energy audits at 69 companies in Hai Phong and other provinces. The energy audits include 26 companies that are involved in the Promoting Energy Conservation in Small and Medium Enterprises (PECSME) project, 26 companies that are beneficiaries of a sci-tech programme to support businesses in times of international integration, seven companies from other provinces and 10 shipbuilding companies under the Vietnam Shipbuilding Industry Group (VINASHIN).

The PECSME is an important project which was approved in 2003 as part of the Vietnam Energy Conservation Program (VECP) and implemented jointly with the United Nations Development Program (UNDP) (Global Environment Facility, 2004).   

The aim of the PECSME programme is to remove barriers to the uptake of energy conservation technologies, improve management’s focus on energy cost reductions, enhance technician training in energy conservation practices and improve the operation of energy using equipment by SMEs (GEF, 2004). The PECSME programme focuses on the following five SME sectors: bricks, ceramics, textiles, paper and food processing. The total costs of the PECSME programme amount to USD 29.227.250 (GEF, 2004).

Component 3 of the PECSME programme EC&EE Technical Capacity Development Program involves, among other things, the conduct of energy audits in selected SMEs. More specifically, the programme “involve[s] the training of energy consultants in energy auditing practices and evaluation of SME’s present energy utilization performance. It will address the limited human resource available for undertaking energy audits to overcome the barriers of lack of appreciation in the need to invest in energy audits and other energy efficiency services.” (GEF, 2004). No estimates of the costs of energy audit conducts have been made, but the total costs of implementing Component 3 were estimated at USD 1,502,000 (GEF, 2004).

No identified detailed implementation measures.

According to UNDP (2008), “one of the main challenges in the PECSME project was to obtain the owners’ full attention and commitment as in many other cases, it proved difficult to obtain complete information from the company owners to effectively diagnose the problem”.


The following outcomes have been identified for the companies which have undertaken energy audits under the Hai Phong Center for Science and Technology Research and Application:

  • “The Hai Phong-based Phu Cuong Food Processing Company Limited has invested nearly VND2 billion in energy conservation by using steam instead of fuel oil (FO) to fry noodle, buying a new steam boiler of higher capacity. These solutions allow the company to save nearly VND1 billion and reduce CO2 emissions by 522 tonnes each year.” (Vietnam Economic News, 2010)

  • “For nearly five years implementing the PECSME project, companies have prevented the emission of 650,000 tonnes of carbon dioxide (CO2) and reduced coal consumption by 50 percent. They have also reduced electricity consumption, contributing to ensuring national energy security. Notably, Hai Phong has established the first energy conservation market in Vietnam with participation of energy service organizations, financial institutions, small and medium-sized companies, technology and equipment providers, and State organizations.” (UNDP, 2008)

  • “Based on a public-private partnership approach, the Tin Thanh Textile and Dyeing Company was one of ten SMEs that implemented energy conservation and energy efficiency measures with technical assistance from PECSME. A modest investment of US$810 in energy conservation and energy efficiency measures saved the factory US$5.560 per year in energy expenses.” (UNDP, 2008)

  • “With the means of the PECSME Fund, the staff of 25 energy efficiency service providers (EESPs) was trained on energy audits and EC project consultancy provision between 2006 and 2010” (Nguyen, 2010).


GEF (Global Environment Facility), 2004. Promoting Energy Conservation in Small and Medium Enterprises. 5th JPO Regional Workshop, Hanoi, 17 June 2004. Available at: 

Nguyen, B. V., 2010. Project: Promoting Energy conservation in Small and medium scale enterprises in Vietnam: Results and lessons learnt. Sub-regional Workshop for GEF Focal Points in Asia, Hanoi, Vietnam, 10-12 March 2010.

UNDP (United Nations Development Programme), 2008. Evaluation of UNDP/GEF Project: Vietnam – Promoting Energy Conservation in Small and Medium Scale Enterprises (PIMS 2057). Mid-Term Evaluation Report.

Vietnam Economic News, 2010. Hai Phong SMEs Foster Energy Conservation. Available at: