Denmark will support energy saving initiatives in the private sector in Vietnam under a programme worth 6.5 million USD.

A cooperation agreement to the effect was signed in Hanoi on June 25 by the Danish Embassy in Vietnam, the Bank for Development and Investment of Vietnam, the Vietnam Technological and Commercial Bank, and the Saigon Commercial Bank.

Accordingly, small and medium sized enterprises (SMEs) operating in brick making, ceramics, and food industries can access loans from the above appointed banks.

They are enabled to access additional funding worth half of their loans to pour into energy-efficient projects.

A plus of the deal is that enterprises can redeem between 10 to 30 percent of their total investment based on the amount of energy they save.

Over the past five years, Denmark has supported Vietnam by investing nearly 30 million USD in sustainable energy and energy saving ideas, said Danish Ambassador John Nielsen, adding that the programme would benefit as many as 300 projects in Vietnam by 2016.

Deputy Director of the General Directorate of Energy under the Ministry of Trade and Industry Nguyen Viet Son, hopefully said that the programme would help develop a greener economy in Vietnam.

It will run until June 2017 and the Australia and New Zealand Banking Group (ANZ) in Vietnam has been authorised to manage the fund.-VNA