The first draft of the law on economical and efficient use of energy has been recently unveiled by drafting Ministry of Industry and Trade for public comment.
The draft law, with 49 articles arranged in 10 chapters, provides for economical and efficient use of energy in industrial production establishments, civil construction facilities, transport works and energy-consuming appliances, reasonable use of renewable energy sources and measures to boost energy savings.
It would apply to all organizations and individuals engaged in energy-using activities in the Vietnamese territory.
Energy-using activities are defined as those related to, or directly using, energy; manufacturing, importing and trading in energy-consuming vehicles and appliances; and managing the quality of energy-consuming products in terms of their energy performance.
The draft law devotes a separate chapter offering a raft of incentives and supports for economical and efficient use of energy.
Specifically, manufacturing energy-saving products and generating renewable energy would be entitled to corporate income tax, value-added tax, environmental tax, environmental protection charge and royalty breaks. Meanwhile, import tax exemption would be given to machinery, equipment, vehicles and devices imported for the purpose of energy savings, manufacture of energy-saving equipment or generation of renewable energy. Products made from recycled wastes, energy generated from waste destruction and substitutes for natural raw materials would be eligible for price subsidies while investment projects on the manufacture of energy-saving products, import of new technological chains or intensive investments to save energy eligible for preferential loans. Renewable energy projects would enjoy investment supports. Tax and investment incentives would be also provided for the development of liquefied petroleum gas- and compressed air-operated vehicles as well as the manufacture, import and use of clean and fuel-saving vehicles.
An energy-saving fund would be set up from such sources as additional levies on total turnover of fossil fuel and electricity trading activities, fines for violations related to the economical and efficient use of energy, state budget supports and contributions of domestic and foreign organizations and individuals. This fund would be used to provide subsidies or preferential loans for energy-saving activities.