SMEs urged to use energy efficiently

Thursday, Nov 30, 2017 08:30

Small and medium sized enterprises should invest in renovating their production technologies to increase energy efficiency. - File Photo

Small- and medium–sized enterprises (SMEs) in industrial production were urged to develop green growth strategies to improve business efficiency and protect the environment, experts said at a conference held by the Central Institute for Economic Management (CIEM) on Wednesday.

Trinh Duc Chieu, Deputy Head of CIEM’s Corporate Development and Reform Department, said that a large number of SMEs still used outdated and energy-consuming technologies, despite the Government’s push to promote green growth.

Chieu cited a survey that found 75 per cent of processing and manufacturing enterprises in Ha Noi said that their energy consumption was higher than the world’s average.

In 2015, 53 per cent of companies in the processing and manufacturing industry used technologies which were developed more than six years ago and only 14 per cent invested in technologies that had hit the market within the three most recent years.

In addition, most SMEs did not conduct reports on their energy consumption and their awareness about the importance of using energy efficiently remained low.

SMEs made up around 17 per cent of companies operating in the manufacturing and processing industry – the sector which consumed the most energy, accounting for 43 per cent of the country’s total energy consumption.

According to Chieu, the lack of support and inconsistencies in policies has not encouraged SMEs to use energy more efficiently. Besides, the development of renewable energies still dramatically lags demand.

“It is important for SMEs to enhance energy use efficiency, which will help cut production costs, improve quality, increase profits and develop in a sustainable way,” Chieu said.

Moving towards green growth, using natural resources and energy more efficiently, will increase resilience to climate change.

Chieu said the legal framework on energy must be improved to encourage energy efficiency and prod SMEs to shift towards renewable energies.

According to Nguyen Dinh Khuyen from the General Statistics Office, an energy data system should be developed to provide information for analysis in order to craft appropriate policies.

At the conference, experts also said that tax and credit policies should be established to encourage the development and use of renewable energies and so that SMEs will update their technologies. - VNS

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