Law Amending and Supplementing a Number of Articles of the Law on Economical and Efficient Use of Energy Has Been Passed by the National Assembly

On June 18, 2025, the 15th National Assembly passed the Law Amending and Supplementing a Number of Articles of the Law on Economical and Efficient Use of Energy, with 425 out of 426 deputies present voting in favor. This amending and supplementing Law features many new points, marking a significant step forward in building a new legal framework that aligns economic development strategies with energy security and environmental protection.

Accordingly, the Law Amending and Supplementing a Number of Articles of the Law on Economical and Efficient Use of Energy takes effect from January 1, 2026. Energy management certificates issued before the effective date of this Law shall remain valid until the end of December 31, 2030.

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The Law Amending and Supplementing a Number of Articles of the Law on Economical and Efficient Use of Energy includes many important changes aimed at institutionalizing the Party’s orientations on energy and resolving several obstacles and shortcomings of the current Law, ensuring the synchronicity and consistency of the legal system, in line with the current domestic and global context as well as the international commitments that Vietnam has joined.

At the same time, the Law also contributes to strengthening the effectiveness and efficiency of state management, creating a favorable legal corridor to encourage and promote economical and efficient energy use activities; utilizing and attracting domestic and foreign resources to support and promote energy-saving investment processes and the market transformation of energy-saving products.

Luật sửa đổi, bổ sung một số điều của Luật Sử dụng năng lượng tiết kiệm — *The Law Amending and Supplementing a Number of Articles of the Law on Economical and Efficient Use of Energy with 425/426 delegates participating in the voting in favor*

Expanding the scope of mandatory energy labeling, especially for Construction Materials

According to Clause 16, Article 1 of the Law on Economical and Efficient Use of Energy, it is regulated that “Means, equipment, and construction materials in the list of means, equipment, and construction materials required to have energy labels must be labeled before being put on the market.” This creates an important legal basis aimed at promoting energy saving in the construction industry, enhancing the competitiveness of enterprises, and promoting a green transition in construction.

At the 15th National Assembly, the Standing Committee on Science, Technology, and Environment (STE) stated that the Minister of Industry and Trade and the Minister of Construction, within the scope of their duties and powers, are responsible for developing and issuing the list of means, equipment, and construction materials required to have energy labels and the implementation roadmap within the management scope of their respective Ministries.

As this is a new field, the draft Law has added policies to encourage and support enterprises, organizations, and individuals in implementation (Clause 17, Article 1 of the draft Law – corresponding to Article 41 of the consolidated draft Law). At the same time, it assigns the Ministry of Construction the responsibility to issue the specific list and roadmap (Clause 16, Article 1 of the draft Law – corresponding to Clause 4, Article 39 of the consolidated draft Law).

Establishing the Fund for Promotion of Economical and Efficient Use of Energy

The establishment of the Fund for Promotion of Economical and Efficient Use of Energy received many concurring opinions, though some suggested not establishing this Fund. According to the Standing Committee on STE, the establishment of this fund is necessary to institutionalize Resolution No. 55-NQ/TW. The fund’s activities will promote and encourage investment in and the use of energy-saving technologies and equipment, contributing to increased labor productivity, innovation of growth models, energy savings, ensuring energy security, and environmental protection.

The Law Amending and Supplementing a Number of Articles of the Law on Economical and Efficient Use of Energy also clearly states:

19. Supplementing Article 41a after Article 41 as follows:

“Article 41a. Fund for Promotion of Economical and Efficient Use of Energy

1. The Fund for Promotion of Economical and Efficient Use of Energy is an off-budget state financial fund, operating on a non-profit basis.

2. The Fund for Promotion of Economical and Efficient Use of Energy is authorized to mobilize capital, provide loans, invest, entrust, and receive entrustment to perform the function of promoting economical and efficient energy use activities nationwide.

3. The Fund for Promotion of Economical and Efficient Use of Energy aims to support and finance projects, tasks, and activities promoting economical and efficient energy use with flexible mechanisms according to donor requirements and current legal regulations.

4. The Prime Minister shall decide on the establishment, organization, and operation of the Fund for Promotion of Economical and Efficient Use of Energy in the direction of socialization, ensuring financial independence, avoiding duplication with revenue sources and expenditure tasks of the state budget, and limiting increases in operating and production-business costs for enterprises and production-business establishments.

5. The Government shall regulate the capital sources of the Fund for Promotion of Economical and Efficient Use of Energy.”

Promoting Decentralization, Empowerment, and Reduction of Administrative Procedures

The Law on Economical and Efficient Use of Energy has regulated that the list of key energy-using establishments shall be developed and issued by Provincial People’s Committees once a year, which is consistent with the policy of promoting decentralization, empowerment, and the application of science, technology, and digital transformation in management activities.

Ms. Nguyen Thi Lam Giang, Director General of the Department of Innovation, Green Transformation and Industry Promotion, Ministry of Industry and Trade, stated regarding administrative reform: “The new Law has reduced 50% of administrative procedures compared to the old law.” Accordingly, this amending Law has maximized the simplification of administrative procedures, cutting procedures for issuing energy labeling certificates and issuing energy audit certificates. The Ministry of Construction shall issue energy consumption norms in the production of construction materials under the Ministry’s management scope.

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In conclusion, the passage of the Law Amending and Supplementing a Number of Articles of the Law on Economical and Efficient Use of Energy (Law No. 77/2025/QH15) marks a transformative shift in Vietnam’s green energy strategy. By strengthening the Law on Economical and Efficient Use of Energy, the National Assembly has moved beyond mere encouragement toward mandatory compliance for key energy users. This updated Law on Economical and Efficient Use of Energy introduces a specialized financial fund to support green technology and expands energy labeling to include building materials.

Furthermore, the Law on Economical and Efficient Use of Energy now formalizes the Energy Service Company (ESCO) model, removing previous investment bottlenecks. Effective from January 1, 2026, this revised Law on Economical and Efficient Use of Energy is critical for meeting Vietnam’s net-zero commitments and enhancing national energy security. Successfully adhering to the Law on Economical and Efficient Use of Energy not only ensures legal compliance but also drives significant operational savings for enterprises. Ultimately, the Law on Economical and Efficient Use of Energy serves as the backbone for a sustainable, high-efficiency economy in the years ahead.

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