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Terminal evaluation of Local Development and Promotion of LED Technology for Advanced General Lighting Project (00084024)
Commissioning Unit: Viet Nam
Evaluation Plan: 2017-2021
Evaluation Type: Project
Completion Date: 08/2020
Unit Responsible for providing Management Response: Viet Nam
Documents Related to overall Management Response:  
1. Recommendation:

Evaluation recommendation 1: Support to SMEs/small LED companies upgrade their production line with high quality lighting systems

It may be useful for the Viet Nam Lighting Associations (VLA) and Ministry of Industry and Trade (MoIT) to analyse how smaller LED companies can take advantage of the incentives offered under the SME Law, whether these are enough and if additional incentives are needed for small LED companies upgrade their production line and with high-quality and intelligent lighting systems.

Management Response: [Added: 2020/08/04]

Management response: Agreed and implemented

SMEs are critical to Viet Nam’s growth, providing significant contributions to job creation, export promotion and poverty reduction. Around 98 percent of the country’s enterprises are SME’s and they account for 40 percent of GDP and 50 percent of employment. However, they face several challenges, such as limited access to finance, technology and global supply chains, legal and administrative hurdles and shortage of qualified and skilled human resources. On top of these, the requirements of the new mandatory LED S&L scheme create additional challenges for the SMEs in the lighting sector. Hence it is important that measures be taken to counter the impact of the LED S&L scheme on SMEs in the lighting sector and improve their competitiveness and resilience.

The support to LED SMEs has been paid attention during the implementation of the project. The project and MOIT has supported the LED SMEs in preparation for the LED labeling programme through consultation and awareness raising workshop and support in preparation of documents for LED labeling. MOIT has also simplified the labeling procedure that reduce the administrative procedures for LED company to apply and participate in LED labeling programme.

In addition, building on this project, a project of NDC partnership and private sector by UNDP has been exploring possible support to and engagement with LED SMEs i.e. VLight in developing LED lighting for agricultural products.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
1. Provide technical support to the LED SMEs in participating in LED labeling programme (completed within the project duration) 2. Integrate the support to SMEs in LED to other projects by UNDP where applicable i.e. NDC and private partnership project 3. Consolidate the recommendation on support to LED SMEs into the project final report and disseminate it to the project partners
[Added: 2020/08/04]
PMU/Project Manager and UNDP Programme Officer 2020/04 Completed All action results are presented in the attached project final report History
2. Recommendation:

Evaluation recommendation 2: Public sector and finance

Sustainable energy financing in the public sector meets barriers and issues that should be addressed in a context wider of more market-based financing that goes beyond the topic of efficient lighting only. VAST’s core competence is as a science and technology institution Hence, in future ‘efficient lighting’ programmes, it may be useful to address the issue of ‘more widespread LED dissemination’ not only from a technology angle (which has been VAST’s expertise) but also the financial angle (e.g. by teaming up with a local financial institutions).

Management Response: [Added: 2020/08/04]

Management response: Agreed and Implemented

Due to the limited funding available, the project was designed to limit its focus to a few areas such as improving product technology and quality and on demonstration of application. However, this relatively narrow focus resulted in less significant effort being made on the issue of financing, which is critical for further market development. A study was conducted on identifying opportunities for Public-Private Partnerships for financing Public Lighting LED projects and this has provided inputs for the efforts by the Government in modernizing the Public Lighting system. Future support projects and activities where applicable would consider the issue of financing be addressed in a more comprehensive manner.

Currently, authorities at local levels (provinces, cities and districts) including Ho Chi Minh City, Hanoi, Da Nang, Quang Ninh, Hoi An and others are aware of the advantages of LED lighting, so they have decided to allocate budget for replacing the old lighting system with LED lighting system, and encouraging private investment in this area.

Besides, UNDP CO is developing a proposal for IKI potential funding of which support to SMEs and establishment of a de-risking mechanism for SMEs including those working in LED sector are one of work packages.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
2.1 Integrate the recommendation on inclusion of improved financing component to SMEs into future projects/activities where applicable into the in the project terminal report which will be disseminated and conveyed to MOIT, VAST and UNDP.
[Added: 2020/08/04]
Project Manager and UNDP Programme Officer 2020/04 Completed
2.2 Finalize the study on financing mechanism for public LED lighting with recommendation on feasible financing mechanisms
[Added: 2020/08/04]
Project Manager and UNDP Programme Officer 2020/04 Completed
3. Recommendation:

Evaluation recommendation 3: Stimulation of demand for LED lighting in public sector and residential sector

The LED Viet Nam project has done a small survey on the LED lighting market. While giving valuable information on the LED lighting market, due to budget constraints the survey has been limited in scope. The Evaluation Team suggests that a government entity commissions a more comprehensive lighting demand and supply survey (focusing on more cities and regions and with a statistically relevant minimum number of users interviewed). Accurate market information will help to redefine the standards and labelling according to products available on the market and appropriate strategies that promote the replacement of less energy-efficient lighting technologies by LED lighting.

Management Response: [Added: 2020/08/04]

Management response: Agreed and implemented

The survey conducted under the project was to collect essential information needed to estimate the project indicators and to support the development of proposed LED development roadmap. In the future a more comprehensive energy survey would be needed, including on lighting, which would be useful for many purposes such as energy planning, evaluation and design of S&L programmes, design of DSM programmes, NDC investment planning, GHG inventory preparation, preparation of energy balance, urban and rural planning, etc.  

In the final report of the LED project, VAST has proposed to the MOIT and the VLA annually to collect database on a national scale, evaluate and update the market lighting field to promoting the replacement of less energy-efficient lighting technologies with LEDs. VLA has collected the annual data through the sales of their member companies i.e. RALACO and Dien Quang.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Include the recommendation into the final project report and convey this to VLA and MOIT through the project closing workshop so that VLA will continue their survey and MOIT would consider undertake the survey on annual basis for LED market development.
[Added: 2020/08/04]
PMU/Project Manager 2020/04 Completed
4. Recommendation:

Evaluation recommendation 4:  Viet Nam Lighting Association (VLA)

The market of LED lighting has developed rapidly over the past decade in terms of market volume, production methods and LED technology applications. It is suggested that VLA seeks cooperation with national and regional lighting associations in the Asian region, in Europe and North America to stay abreast of the latest technology, manufacturing and product application developments.

Management Response: [Added: 2020/08/04]

Management response: Agreed and implemented

Viet Nam Lighting Association (VLA) has established cooperation not only with Asian countries including China, Japan, Korea, Thailand, etc. but also with lighting associations of other countries in Europe and USA. Annually, VLA organizes National Conferences on Lighting with the participation of a number of international lighting associations; and facilitate the participation of lighting companies to participate in international fairs and exhibitions held in Viet Nam as well as in other countries.

Key Actions:

Key Action Responsible DueDate Status Comments Documents
Convey the recommendation to VLA through the project final report and project closing meeting. As explained above, VLA has already established and continued networking with other countries and lighting association for the development of LED lighting industry in Viet Nam
[Added: 2020/08/04]
Project Manager 2020/04 Completed
5. Recommendation:

Evaluation recommendation 5: Dissemination of the project results

The results and materials of the Project are disseminated widely, by means of making summary technical reports available on the VAST-CHTD ‘lighting’ webpage, mailing lists and making available materials at the Completion Workshop. It should also be investigated how this webpage can be maintained in the post-project future, e.g. in cooperation with the Viet Nam Lighting Association.

Management Response: [Added: 2020/08/04]

Management response: Agreed and implemented  

The recommendation is fully noted and has been already implemented during the project phase. During the project implementation, technical reports, training materials, summary of project results and video clips have been developed and regularly updated and maintained on VAST website @ http://htd.vn/led-lighting-projects.html. These products are also disseminated at the project workshop and final workshop. The e-learning course on LED is managed and run by the Ho Chi Minh Technology University @ http://e-learning.hcmut.edu.vn/login/index.php?lang=en

Key Actions:

Key Action Responsible DueDate Status Comments Documents
- Disseminate the project’s results, video clip and handbook on LED technology on VAST’s website and UNDP website, and at project closing workshop - Maintain the project’s results on VAST’s website @ http://htd.vn/led-lighting-projects.html - Hand over the on-line training programme on LED technology to the Ho Chi Minh Technology University
[Added: 2020/08/04]
PMU/Project Manager UNDP Programme Officer and Communication Officer 2020/12 Completed

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