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18:02 | 14/08/2025

Energy Audit – The First Step in the “Greening” Journey and Energy Efficiency

08/08/2025

Within the framework of the Voluntary Agreement Scheme on Energy Efficiency in Energy Intensive Industries (VAS Program) - an activity under the DEPP3 Program, participating enterprises receive technical assistance to conduct energy audits in accordance with international standards, as well as in-depth techno-economic studies to identify solutions and investment opportunities for energy efficiency.

These studies provide enterprises with a comprehensive view of potential, risks, and opportunities in terms of finance, technology, and the market, thereby supporting them in making sound investment decisions toward “greening” and energy efficiency.
Pho Yen Mechanical Joint Stock Company (FOMECO) is one of 10 key energy-intensive enterprises selected to pilot international-standard energy audits within the VAS Program. This article shares practical insights from the company’s experience working with domestic and international consultants in collaboration with the Program.
It's a pleasure to meet you, Mr. Dam Duy Duc (Deputy Director of FOMECO). Could you please share your experience of participating in the VAS Program?
Mr. Dam Duy Duc:
We joined the VAS Program in July 2024. Right after signing the voluntary agreement with the Ministry of Industry and Trade, we collaborated with the consulting team supported by the Program to carry out an energy audit at our factory. The process went smoothly, thanks to our thorough data preparation and the professionalism of the audit team. The energy audit report has now been completed, with detailed analyses that clearly identify high-energy consumption areas and propose a wide range of potential solutions - both low-cost and investment-required options.
We plan to select a few of the most promising expert-recommended solutions to develop a pre-feasibility study.
How would you evaluate this audit compared to previous ones the company has conducted?
Mr. Dam Duy Duc:
FOMECO is a designated energy user in the industrial sector. According to the Law on Economical and Efficient Use of Energy, we are required to conduct a mandatory energy audit every three years. However, this round, with support from both local and international experts, I found the quality of the audit significantly improved compared to previous ones.
The most noticeable difference is the in-depth approach - not just stopping at measurements and listing solutions, but also analyzing implementation feasibility and providing detailed calculations on financial benefits and emission reductions. Moreover, with the Program’s support, this audit no longer feels like a "one-time task," but rather the first step in shaping our long-term energy strategy.
Mr. Dam Duy Duc, Deputy Director of FOMECO
How will having an international-standard energy audit report and in-depth technical support from the Program - such as pre-feasibility and feasibility studies - assist FOMECO’s management in making investment decisions on energy-saving solutions
Mr. Dam Duy Duc:
It will certainly be very helpful. When making investment decisions, our management board needs convincing evidence and clear information. One major barrier in the past was the lack of sufficient persuasive data to justify investing in energy-saving solutions, especially those requiring significant upfront capital. However, with this audit report supported by the VAS Program, the data has been standardized, systematically analyzed, and includes detailed calculations on payback period, operating cost savings, and CO₂ emissions reduction. The creation of a visual and scientific energy map is also a very useful tool for identifying shortcomings in overall energy management and for supporting future energy management.
Thanks to the quality report and the program’s post-audit consulting support, it will be much easier for us to develop proposals and investment roadmaps.
Some enterprises are still hesitant to join the VAS Program due to concerns that it might require greater time and effort than a regular energy audit. What was the actual process like for FOMECO?
Mr. Dam Duy Duc:
We also had similar concerns initially. However, after joining and receiving detailed guidance, we found the Program’s requirements to be reasonable and primarily beneficial to the enterprise itself. In fact, thanks to the templates and tools provided by the program, we even saved time in planning and internal monitoring.
One indirect yet very important benefit is that our technical team has learned a lot. This is a hands-on opportunity to enhance capacity - not just theoretical learning.
In the near future, carbon emission reduction will become a mandatory requirement from international clients - especially in the automotive and motorbike supporting industries. The VAS Program helps us build readiness - from management and reporting systems to technical solutions. This is a competitive advantage that may not be immediately visible, but it will be highly valuable over the next 3–5 years.
Would you like to share anything with enterprises that are still considering whether to join the VAS Program?
Mr. Dam Duy Duc:
I think the most important thing is to view the VAS Program as an opportunity to shift your approach to energy management - not only to save costs but to build a foundation for sustainable development and enhance competitiveness. Participation is not overly complicated, but the benefits are clear: knowledge, tools, expert support, and a concrete action roadmap. If a company has a strong internal commitment, VAS is truly a program worth joining.
Thank you for your candid and practical sharing. We wish FOMECO continued success in your development journey!
Under the VAS Program, many key energy-intensive industrial enterprises have been supported to carry out international-standard energy audits and pre-feasibility and feasibility studies. As of mid-2025, 93 energy-efficient solutions have been identified, leading to potential energy savings of up to 194.5 GWh/year and a significant reduction in CO2 emissions for enterprises.
Throughout 2025, the DEPP3 Program will organize a series of technical meetings to share experiences from implementing the demonstration energy audits with relevant stakeholders. Two meetings to share audit experiences for the paper, mechanical, textile, and seafood industries were held in mid-June, with nearly 180 attendees participating in-person and online. Materials and articles about the seminars are available HERE.
DEPP3 Program

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