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

According to the Global Environment Facility (2004), the programme Promoting Energy Conservation in Small and Medium Enterprises (PECSME) was approved in 2003 as part of the Vietnam Energy Conservation Program (VECP). The programme was carried out jointly with the United Nations Development Program (UNDP).   

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 implementing the full PECSME project amount to USD 28,769.000. Around one-sixth (19 percent) of the full project cost is the proposed contribution from the GEF of USD 5,469.000. The government ministries, local government agencies, the private sector and others will co-finance the project in the amount of USD 23,300.000. The project budget will be used as follows: USD 1,239.000 for policy and institutional development, capacity building and support; USD 1,446.000 for communications and awareness, capacity building and support; USD 1,502.000 for technical capacity development and support; USD 2,162.000 for energy efficiency services provision, industry capacity building and support; USD 3,545.000 for financing capacity building and support; and USD 18,855.000 for demonstration projects’ technical support (GEF, 2004).


From 2006 to 2010, USD 29 million was spent to implement the project in 500 SMEs operating in the areas of clean production, ceramics, weaving, paper and pulp manufacture and food processing. The project includes six sub-programmes: supporting policy and institutional development; improving communications and awareness; building technical capability; supporting providers of energy saving services; providing financial assistance; and providing guidance in using energy economically and effectively (REEEP, 2009).

No identified challenges.

According to APERC (2010), the project is expected to help save about 136,000 tonnes of fuel oil and reduce CO2 emissions by 962,000 tonnes by 2009.


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

REEEP (Renewable Energy & Energy Efficiency Partnership), 2009. Policy DB Details: Vietnam (2009). Available at:

APERC (Asia Pacific Energy Research Centre), 2010. APEC Energy Overview 2009. Tokyo. Available at: