Amendments to the Law on Economical and Efficient Use of Energy: Simplifying administrative procedures, promoting decentralization

Attending the meeting were Deputy Prime Ministers; Deputy Secretaries of the Government Party Committee; Ministers, Heads of ministerial-level agencies, Government agencies; leaders of ministries, branches and central agencies.

According to the agenda, at the meeting, the Government will review and discuss: Law on Atomic Energy (amended); Law on Water Supply and Drainage; Law on Urban Management and Development; Law on Science, Technology and Innovation; Law on Economical and Efficient Use of Energy; and propose to develop the Law on Enterprises (amended).

Speaking at the meeting, the Prime Minister pointed out that in the process of proposing, supplementing, amending and perfecting legal regulations, it is necessary to ensure 6 things: Contents that have been omitted; contents that have been amended and perfected; contents that have been supplemented; contents that have been reduced or simplified administrative procedures; contents that have been decentralised and delegated; issues that have different opinions and other issues that need to be reported to the Government Standing Committee, the Government, and the Prime Minister for consideration and direction. At the same time, the development of new legal documents must ensure the following principles: Institutionalisation of the Party and State's policies and guidelines; contents that have not yet been regulated by law; contents that have been regulated by law but have been overcome in practice; contents that need to be resolved; simplification and reduction of administrative procedures; decentralisation and delegation of power; issues that still have different opinions...

The draft Law is amended and supplemented to suit reality.

At the meeting, the representative of the Ministry of Industry and Trade presented a report on the draft Law amending and supplementing a number of articles of the Law on Economical and Efficient Use of Energy. According to the report, the Law on Economical and Efficient Use of Energy No. 50/2010/QH12 took effect from January 1, 2011. After 15 years of implementing the law, a number of shortcomings have been revealed that need to be reviewed for amendment and supplementation for the following reasons:

Firstly, the international context has many fluctuations that create great challenges such as: carbon emission tax (Emissions Trading System-ETS), Carbon Border Adjustment Mechanism to be implemented by the European Union (EU) (CBAM)... putting pressure on Vietnam's export market, reducing the competitiveness of Vietnamese goods and enterprises, especially Vietnam's key industrial export products such as textiles, footwear, plastics, steel, electricity, electronics, seafood processing...

Second, Vietnam has committed to achieving net zero emissions by 2050. However, Vietnamese manufacturing enterprises lack financial mechanisms to support businesses in complying with green regulations.

Accordingly, the amendment and supplementation of a number of articles of the Law on Economical and Efficient Use of Energy aims to fully and effectively institutionalize the viewpoints and policies of the Party and State on economical and efficient use of energy. At the same time, it enhances the competitiveness of Vietnamese enterprises in the face of challenges from European green regulations (Green Deal) such as Carbon Tax (ETS), Cross-border Carbon Adjustment Mechanism (CBAM) on goods and services exported to the European, American, and Japanese markets, etc. through financial support tools and incentive mechanisms for enterprises investing in projects on economical and efficient use of energy to meet the requirements of the export market through the fund mechanism; promote the development and expansion of the market for energy consulting services. In addition, it contributes to proactively and actively implementing commitments when participating in the 26th United Nations Framework Convention on Climate Change (COP26).

Amending and supplementing 21 clauses of 18 Articles

Also according to the report of the Ministry of Industry and Trade, the Draft Law on Energy Efficiency and Use The draft Law closely follows 04 amended and supplemented policies that have been agreed by the Government and submitted to the National Assembly Standing Committee: Policy 1: On improving the effectiveness of state management in the field of economical and efficient energy use; Policy 2: On management and development of energy consulting services, energy auditing, and human resource training in the field of economical and efficient energy use; Policy 3: Regulations on preferential policies and financial support tools for the field of economical and efficient energy use ; Policy 4: Market transformation and performance management of energy-using vehicles and equipment. At the same time, it inherits the contents stipulated in 12 Chapters and 48 Articles of the current Law, of which 30 Articles are kept intact. The Draft Law has amended, supplemented and completed 21 clauses in 18 Articles of the Law on Economical and Efficient Use of Energy.

In response to the direction of the Government Standing Committee at the meeting on March 12, regarding the clarification of the political basis, legal basis, and necessity of promulgating the Law, the Ministry of Industry and Trade has completed the Submission to draft the Law amending and supplementing a number of articles of the Law on Economical and Efficient Use of Energy, which clearly and concisely states the contents of the political basis, legal basis, and necessity of promulgating the Law.

Regarding the directives related to the structure, layout, and explanation of specific contents to be amended, supplemented, and abolished in the draft Law, the Ministry of Industry and Trade has reviewed the structure and content of the Draft Law to ensure brevity and a minimalist layout (including 3 Articles). The Government's submission also clearly stated the abolished provisions, amended provisions, and supplemented provisions, clearly explained the changes, and clearly stated the reasons why, following the Prime Minister's direction at the meeting on March 12 in Appendix 2 of the Submission, the explanation also affirmed that the process of drafting the Law closely followed the 4 amended policies approved in Resolution No. 240/NQ-CP.

Regarding the simplification of administrative procedures, business conditions, decentralization and delegation of authority, the Drafting Agency has carefully reviewed the Law on Efficient and Economical Use of Energy 2010, maximally simplifying administrative procedures and business conditions. Optimizing the contents on decentralization and delegation of authority in the draft revised Law. The draft Law is expected to reduce 2/4 of the procedures, achieving a reduction rate of 50%. The contents related to decentralization and delegation of authority are in 04 clauses of 04 Articles of the current Law (Articles 30, 32, 39, 40) and reforming administrative procedures in 04 clauses of 03 Articles (Articles 34, 35, 39).

Regarding the review of the authority of the National Assembly and the authority of other agencies, the Ministry of Industry and Trade has reviewed and found that the contents of the draft Law amending and supplementing a number of articles of the Law on Economical and Efficient Use of Energy have clarified the authority of the National Assembly and other agencies as well as specified new contents according to the requirements of institutionalizing the Party's guidelines and policies.

In addition, receiving instructions related to supplementing content with different opinions, the Ministry of Industry and Trade has reviewed and found that there is no content with different opinions on the draft Law.

During the process of drafting the Law, the Ministry of Industry and Trade has fully implemented the procedures for drafting the Law, including the following contents:
- Organize to collect written opinions from the People's Committees of provinces and centrally-run cities, relevant ministries, agencies, associations, corporations and general companies; post the full text of the Draft Law and the Submission on the Government and Ministry of Industry and Trade's electronic information portals to widely collect opinions from people and businesses.
- Organize workshops to collect opinions from agencies, units, businesses, experts, scientists, and development partners nationwide.
Although the draft Law was developed according to the order and procedures of the Law on Promulgation of Legal Documents 2015, adopting the spirit of the Law on Promulgation of Legal Documents 2025, the Ministry of Industry and Trade organized to collect written opinions from National Assembly delegations in localities across the country.
The Ministry has also asked for appraisal opinions and has reported explaining the appraisal opinions of the Ministry of Justice.
On March 12, 2025, the Government Standing Committee met and gave directions on the Draft Law. The Ministry of Industry and Trade fully accepted and explained the opinions of the Government Standing Committee at the meeting.

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Source: https://moit.gov.vn/tin-tuc/hoat-dong/sua-doi-bo-sung-luat-su-dung-nang-luong-tiet-kiem-va-hieu-qua-don-gian-hoa-thu-tuc-hanh-chinh-day-manh-phan-cap-phan-quy.html