Representatives of the Danish Embassy and ANZ Viet Nam sign an agreement in Ha Noi on December 2. — Photo ANZ

HA NOI (Biz Hub) ─ The Embassy of Denmark in Viet Nam has mandated ANZ Viet Nam to be the sole fund-holding bank for the Embassy's US$6.5-million energy efficiency fund.

According to their agreement, signed here last December 2, the fund will help Vietnamese small- and medium-sized enterprises (SMEs) improve energy efficiency and promote clean and sustainable manufacturing in Viet Nam.

Denmark has decided to support energy efficiency investments in Viet Nam with $11 million following a comprehensive high-level partnership. The $6.5-million fund is part of this overall support, which targets SMEs in the brick, ceramics and food processing sectors.

The Embassy, in conjuction with the Ministry of Industry and Trade, has put in place a financing mechanism whereby local commercial banks will work with SMEs and verify qualified projects, to which the Embassy will provide 50 per cent of financial support via the ANZ's guarantee. The mechanism will take effect from January 2015 to June 2017.

"Danish know-how and advanced green technologies are well-matched to the challenges faced in Viet Nam. We hope our support will raise awareness and make ideas and improvements come to life in the private sector," said Danish Ambassador John Nielsen.

Phan Thi Thanh Binh, acting chief executive officer of ANZ in Vietnam, said the bank was committed to ensuring the fund was well managed and the project was successful.

Denmark has provided Viet Nam with more than $1.3 billion in development assistance since 1994.

The ANZ Viet Nam franchise supports customers from the sectors of retail and wealth, consumer finance, financial institutions and government, as well as large and emerging corporate segments. — VNS