During 2015-2016, UNDP and Vietnam’s Ministry of Industry and Technology (MOIT) worked with four Vietnamese steel factories on reducing greenhouse gas (GHG) emissions in order to build a business case for energy efficiency. The pilot measures, which were carried out last year, resulted in an emission reduction of around 15% or 34,000 tons of CO2eq/yr over those in 2015.

The four companies each developed a GHG Emissions Reduction Action Plan for 2016-2020 based on site assessments conducted by national mitigation experts in 2015.  Last year, some of these measures were implemented to demonstrate the mitigation potential, including measures to improve furnace efficiency through improved loading, better insulation and combustion optimization; using more efficient motors; improving compressed air performance by using higher efficiency compressors and reducing air leaks; and using variable speed drives for drives with variable loading.

In support of these activities, an Energy Management System was set up to improve efficiency and staff was trained to strengthen their capacities to implement the interventions and improve maintenance procedures. The four steel factories that joined this initiative were: Thu Duc Steel Company in Ho Chi Minh, Tay Do Steel Company in Can Tho, Dana – Y Steel Company in Da Nang, and Viet-Phap Steel Company in Quang Nam province.

The analysis and pilots were delivered through the UNDP Low Emission Capacity Building (LECB) Programme as part of support to a larger UNDP-MOIT project, ‘Strengthening Capacity on Climate Change Initiatives in the Industry and Trade Sectors’. While these four pilots showed good results,  lack of financing opportunities to implement further measures as well as lower demand for steel in Vietnam now pose a critical challenge for further scaling up of emission reduction efforts in the steel sector.


Energy efficient Energy auditing at molding process at Viet-Phap Steel Company
Energy auditing at Dana – Y Steel Company
Energy auditing at Tay Do Steel Company
Energy efficient CNG furnace at Thu Duc Steel Company