Using energy efficiently is not only a practical solution for improving economic performance, but also plays a vital role in resource conservation and environmental protection—allowing businesses to move toward sustainable development.
According to the Ministry of Industry and Trade, the industrial sector currently accounts for over 50% of the nation’s total energy consumption and holds a savings potential of 20–30% if appropriate solutions are applied. These savings can significantly reduce operating costs while contributing to national goals of greenhouse gas reduction and the shift toward green, sustainable manufacturing.
In a global market that increasingly favors environmentally friendly products, improving energy efficiency also enhances business competitiveness and enables compliance with international standards.
Current energy-saving solutions for factories
Experts identify four core elements to effective energy conservation in factories:
- Raising awareness among employees about energy-saving practices
- Upgrading to modern technologies and renewable energy sources
- Implementing advanced energy management systems (e.g., ISO 50001)
- Monitoring and upgrading technical systems for optimal energy performance
Let’s explore how each of these solutions can be applied in real factory settings.
Solution 1: Applying energy-efficient technologies and equipment
1.1 Transitioning to led lighting systems
In factories, traditional lighting systems such as incandescent, fluorescent, or HID lamps consume high levels of electricity and generate excess heat, reducing overall operational efficiency and increasing the load on HVAC systems. Switching to LED lighting is one of the most effective and accessible energy-saving technologies available today.
LED lighting systems help factories save significantly more energy than older lighting systems.
High efficiency and significant energy savings
LEDs consume up to 80% less electricity than traditional lighting due to their superior ability to convert electricity into light. Unlike incandescent bulbs, which emit light in all directions and produce high heat, LEDs are directional light sources that concentrate light exactly where it’s needed, minimizing energy loss.
Additionally, integrated heat sinks reduce thermal output, which in turn lowers the cooling load—particularly important in factories where HVAC systems are among the largest energy consumers.
Reduced operating costs and fast payback period
Replacing old lighting systems with LEDs can significantly reduce energy and maintenance costs, offering a payback period of just 1–2 years. Today, cost is no longer a major barrier, as most LEDs are designed with standard sockets (e.g., E27, E40), making them easy to retrofit without altering existing infrastructure.
Long lifespan and superior durability
LED lights have an average lifespan of up to 50,000 hours—five times longer than fluorescent lamps and 50 times longer than incandescent bulbs. This longevity leads to lower maintenance and replacement costs. Moreover, LED light output degrades slowly, ensuring stable light quality over time.
Flexible applications for diverse industrial spaces
LEDs are now available in a wide range of models and wattages, suitable for various factory environments such as production floors, warehouses, and technical offices. Common types include LED tubes, LED high bays, LED panels, and recessed LEDs. These lights deliver precise color temperature and high intensity, helping create safer and more productive workplaces.
Note that any cost-saving solution must ensure optimal performance while complying with current standards in Vietnam. For more details, refer to the article: Current electrical codes for industrial facilities in Vietnam
User safety and environmental friendliness
Unlike lights containing mercury or emitting ultraviolet radiation, LEDs are non-toxic, flicker-free, low in infrared radiation, and effectively reduce glare. This improves worker health—particularly eye health—and can cut CO₂ emissions by up to 80%, supporting green production and long-term sustainability goals.
A Step toward system modernization and performance optimization
Beyond energy savings, switching to LED lighting contributes to the modernization of the factory’s infrastructure. Replacing outdated fixtures reduces the risk of overheating, leakage, or fire hazards, while improving the overall efficiency of electrical and HVAC systems.
1.2 Integrating light sensors and automated lighting systems
Light sensors detect ambient brightness to automatically switch lights on/off or adjust brightness levels.
Light sensor systems operate based on the detection of environmental light intensity. When natural light is sufficient, the system automatically turns off or dims the lights. Conversely, when the light level drops below a set threshold, the system switches the lights on or increases brightness accordingly.
In addition to light sensors, automated lighting systems can be programmed with timers or remotely controlled via central software platforms, enabling flexible system management.
Optimize operational costs and improve energy efficiency
Smart lighting systems allow businesses to adjust brightness levels based on time of day, specific zones, and actual usage needs.
For example, areas such as hallways, auxiliary storage, or low-traffic zones can be equipped with motion and light sensors that automatically turn lights on or off when movement is detected—eliminating unnecessary electricity consumption. Scheduling lights according to fixed production shifts also helps prevent lights being left on, significantly reducing electricity costs.
Reduce operational pressure and labor costs
With automation in place, businesses no longer need to assign dedicated staff to operate lighting systems—particularly beneficial in large-scale factories. Lighting can now be managed centrally or programmed according to shift schedules, greatly reducing management and operational labor costs.
Improve safety and ensure compliance with factory standards
Beyond production zones, smart lighting systems are also applicable in specialized areas such as emergency exits, technical corridors, and hazardous material storage areas.
These zones require continuous or instant-activation lighting in emergencies. Automated sensors maintain adequate lighting levels while conserving energy, ensuring full compliance with safety regulations and minimizing risks to workers.
A step toward green and modern operations
Applying sensors and automation to lighting systems not only brings immediate economic benefits but is also a vital step in digital transformation and green manufacturing.
By leveraging natural light, enabling intelligent control, and minimizing unnecessary emissions, businesses can significantly reduce their carbon footprint—enhancing their brand image in the eyes of global partners and environmentally conscious customers.
1.3 Upgrading the HVAC system
Optimizing HVAC systems helps reduce electricity consumption and relieve pressure on internal power grids during peak seasons.
HVAC (Heating, Ventilation, and Air Conditioning) systems play a crucial role in maintaining a stable and safe working environment in factories. These systems regulate temperature and humidity, ensure ideal air quality, protect worker health, maintain production efficiency, and extend equipment lifespan.
New-generation HVAC systems are typically designed for higher energy efficiency and consume less power compared to outdated systems. Replacing or upgrading obsolete HVAC systems helps reduce electricity bills and ease the internal power grid load—especially during peak summer periods. Additionally, modern systems can adjust their capacity in real time, avoiding overuse and reducing energy waste.
Key factors to consider before HVAC installation or upgrades
To ensure effective energy use and optimize investment, businesses should consider several critical factors when upgrading or installing HVAC systems:
- Appropriate Capacity: Systems must be correctly sized for the building’s area, employee density, and heat exchange levels.
- Industry-Specific Requirements: Different industries require specific temperature, humidity, and ventilation controls. For example, food processing plants demand stricter temperature regulation than metalworking factories.
- Energy Efficiency and Operating Costs: Select systems with high energy efficiency ratios (EER/COP), easy maintenance, and cost-effective long-term performance (covering investment, operation, and maintenance).
- Brand Reputation and After-Sales Service: Choose reputable brands offering clear warranty policies, technical support, and strong after-sales service to ensure long-term system stability.
1.4 Applying variable frequency drives (VFDs)
Applying VFDs in industrial factories improves operational efficiency while significantly reducing energy consumption.
A Variable Frequency Drive (VFD) is a device used to adjust the frequency and voltage of alternating current, allowing control of motor speed. In industrial environments—where equipment runs continuously and consumes high amounts of electricity—VFDs are effective in both saving energy and enhancing performance while protecting machinery.
Efficient energy savings
One of the most notable benefits of VFDs is their ability to reduce energy consumption. By precisely adjusting motor speed based on actual demand, VFDs eliminate overcapacity operation—one of the most common causes of wasted electricity. This is particularly valuable for centrifugal equipment such as fans, pumps, and compressors, where VFDs can cut energy consumption by 20–60% compared to traditional operation methods.
Optimize motor efficiency and lifespan
Unlike mechanical controls or direct starting, VFDs allow for smooth acceleration and deceleration, preventing mechanical shocks that may damage or shorten equipment life.
Ensure stable and safe operation in abnormal conditions
Modern VFDs can detect voltage drops or imbalances in the power system and automatically adjust motor speed to maintain stable operation. In three-phase systems, voltage imbalances can lead to phase-shifted currents, excessive vibration, overheating, and reduced efficiency. Installing VFDs in combination with protective devices helps mitigate these risks and ensures the safe operation of the entire system.
Smooth operation, versatile applications—but requires technical expertise
VFDs enable quieter, vibration-free motor performance—suitable for production environments requiring high stability. They are easy to install and can be flexibly applied across various systems such as HVAC, water pumps, and conveyors. However, optimal results require trained technicians for proper configuration and operation.
Support load analysis and energy optimization
When integrated with an energy monitoring system, VFDs can record real-time power consumption data. Businesses can conduct 30-day load studies to identify peak demand periods and optimize operational schedules or invest in better-suited equipment—enhancing overall energy efficiency.
Solution 2: Optimizing energy management and usage
2.1 Raising employee awareness of energy conservation in factories
People are at the heart of all production activities. Therefore, raising awareness among staff about energy conservation plays a pivotal role in any effective energy management strategy. When employees understand the importance and benefits of energy efficiency, they are more likely to change behavior—such as switching off unused equipment, using natural light, and operating machinery correctly. This leads to a positive, lasting impact.
Enterprises can implement training programs, place reminder labels in work areas, launch awareness campaigns, or include energy-saving performance in internal assessments. These small actions, when scaled across the factory, can yield substantial energy savings and help build a green, efficient, and responsible corporate culture.
2.2 Regular maintenance, inspection, and cleaning of systems
System maintenance helps minimize risk and optimize energy use in factories.
Operating equipment that is dirty, unlubricated, misaligned, or malfunctioning consumes more energy than necessary and is prone to overheating and reduced service life.
As a result, factories should adopt a proactive maintenance approach rather than only responding to breakdowns. Installing condition-monitoring sensors allows early detection of anomalies—such as rising power consumption, vibration, or excessive temperature. Additionally, predictive maintenance tools enable timely repairs and reduce downtime while optimizing maintenance costs.
Conducting regular inspections of high-energy-consuming equipment such as electric motors, HVAC systems, air compressors, and exhaust fans helps minimize unnecessary power consumption, extend equipment lifespan, and ensure the safe operation of the entire system. In addition to system maintenance, factory cleanliness is also critically important.
2.3 Implementing an energy management system (EMS)
An Energy Management System (EMS) is a tool that helps businesses monitor, analyze, and optimize energy usage scientifically and effectively. Unlike manual energy tracking with limited data, EMS offers a comprehensive real-time overview of energy consumption by area and by device within the factory.
By collecting and analyzing energy data, EMS enables businesses to identify anomalies, detect energy waste, and implement timely corrective measures. The system also supports energy-saving target setting, performance comparisons over different periods, and automated alerts when consumption exceeds set thresholds.
EMS also plays a vital role in helping companies meet international energy efficiency standards such as ISO 50001. Implementing EMS not only saves operational costs but also enhances transparency, modernizes management processes, and supports long-term sustainability goals.
Solution 3: Implementing renewable energy and resource reuse strategies
3.1 Utilizing biomass energy and waste heat recovery
Leveraging organic materials to generate biomass energy offers a dual-benefit solution for industrial factories.
Biomass refers to organic materials of biological origin, such as bagasse, rice husks, sawdust, straw, and agricultural or forestry waste. According to the Vietnam Energy Institute, the country produces around 118 million tons of biomass annually, highlighting significant potential for development in this sector. Using biomass as fuel is a sustainable path, as it is a renewable energy source derived from natural life cycles—unlike fossil fuels, it does not deplete over time.
Dual benefit: waste treatment and energy savings
One of the most notable advantages of biomass energy is its ability to convert waste into usable energy. Instead of incineration or landfilling—which can pollute the environment—industrial and agricultural waste can be reused to generate electricity or thermal energy to power factory operations. This approach simultaneously addresses waste management and reduces greenhouse gas emissions.
Recovering waste heat – reducing energy loss in production
During manufacturing, equipment such as boilers, dryers, and compressors often produce excess heat that goes unused. Recovering this waste heat to heat water, dry materials, or warm factory spaces can significantly cut energy costs and improve system efficiency. This is considered an on-site renewable solution, utilizing energy already generated by the business—reducing reliance on the national grid.
Cost savings and economic development opportunities
Using biomass or waste heat helps businesses reduce electricity costs, lower waste treatment expenses, and move toward a circular production model. Additionally, developing biomass collection, processing, and distribution systems can generate local employment, particularly in agricultural and forestry regions, contributing to broader economic growth.
3.2 Applying biogas systems to process organic waste
Biogas-powered generators are becoming increasingly common in industrial plants.
Biogas systems are a standout solution for reusing resources and converting organic waste into renewable energy. Through anaerobic digestion or methane fermentation of organic materials like food scraps or agro-industrial waste, these systems produce biogas—a clean fuel that can be used directly in production.
Renewable energy from abundant raw materials
Input materials for biogas systems are widely available and easily sourced: livestock manure, food waste, agricultural processing byproducts, and organic waste from industrial production. These are often overlooked or become pollutants if not handled properly. Biogas technology transforms these waste streams into methane gas, which can be used to generate heat or electricity.
According to research, 1m³ of biogas can generate 1.5–2.2 kWh of electricity and 2.8–4.1 kWh of thermal energy, sufficient to meet basic energy demands in a factory. This not only cuts fuel costs but also reduces dependence on traditional power sources.
Environmental protection and improved workplace conditions
Biogas systems contribute to environmental protection by thoroughly treating organic waste—eliminating odors and health hazards. Reducing waste discharge into the environment, especially in industries like livestock farming, food processing, or agro-processing, leads to cleaner and safer workplaces for employees.
Supporting green production goals and sustainable development
Biogas aligns with Vietnam’s national sustainability objectives and the government’s encouragement of cleaner technologies in industry. Beyond providing clean energy, biogas systems help businesses meet international environmental standards, reduce their carbon footprint, and align with the global shift toward low-emission manufacturing—factors increasingly valued by global markets and partners.
Long-term investment with tangible returns
Although initial investments are required for collection systems, digesters, and generators, biogas systems offer long-term value through lower energy bills, reduced waste treatment costs, and continuous returns from readily available resources. With proper scale and planning, biogas presents a practical solution for factories transitioning to circular economy models.
3.3 Implementing wastewater recycling and reuse systems
Recycling and treating wastewater significantly reduces water supply costs and saves energy for industrial plants.
A wastewater recycling system allows for the collection, treatment, and reuse of wastewater generated during production processes for non-potable applications such as equipment cleaning, irrigation, cooling systems, and factory sanitation. This helps reduce the demand for fresh water and cut water utility expenses for the facility.
Additionally, reusing treated wastewater lightens the load on discharge treatment systems, reducing the required tank volume, chemical use, and energy consumption—making it a highly cost-effective solution, especially for water-intensive factories.
From an environmental perspective, recycling and reusing wastewater helps minimize environmental discharge, reducing the risk of polluting receiving bodies such as rivers, lakes, and ponds. Internal water circulation within the factory also helps conserve groundwater, restore ecological balance, and contributes to achieving sustainable goals in green industrial practices.
Each plant or industrial park will differ in terms of wastewater volume, water characteristics, and system installation space. Therefore, to maximize efficiency, businesses should work with specialized partners to conduct site-specific assessments and design wastewater recycling systems tailored to their operational conditions. Key factors to consider include treatment technology, system scale, investment and operating costs, and integration capability with existing processes.
3.4 Utilizing solar power or wind turbine systems
Solar and wind energy are inexhaustible natural resources, free to harness and ideal for on-site generation.
With a tropical climate and abundant sunshine year-round, Vietnam is well-positioned to adopt rooftop solar power systems. Installing solar panels on factory rooftops not only saves land investment costs but also delivers dual benefits during operation.
A solar system allows factories to independently supply part or all of their energy needs during peak hours, significantly lowering monthly electricity bills. Furthermore, rooftop solar panels can reduce the internal temperature of the factory by 2–5°C, helping to relieve the load on cooling systems such as industrial fans and air conditioners—typically the biggest electricity consumers in factories.
Using renewable energy such as solar or wind power produces zero CO₂ emissions, avoids environmental pollution, and preserves natural resources. This is a key factor in helping businesses reduce their carbon footprint, comply with international market demands, and align with Vietnam’s national sustainability commitments.
While the initial investment can be substantial, the average payback period for solar power systems is just 4–6 years, with a system lifespan of 25–30 years. Government incentives and third-party investment models such as Power Purchase Agreements (PPA) also make it easier for businesses to adopt these systems without bearing the full upfront cost.
Each factory may be better suited to a specific system, depending on its characteristics, climate, and location:
- Rooftop solar is ideal for factories with large, unobstructed roofs and consistent daytime energy demand.
- Wind turbines are suitable for facilities near coastal areas, highlands, or regions with steady year-round wind speeds. While the initial investment is higher, wind systems can deliver superior long-term performance, especially when combined with solar power to form a hybrid energy model—ensuring stable, around-the-clock electricity supply.
Barriers to implementing energy-saving solutions in factories
Despite the clear benefits of energy-saving solutions—such as reduced operating costs, improved environmental outcomes, and enhanced production efficiency—many businesses in Vietnam remain hesitant to invest or implement them. The most common concern lies in the high upfront investment cost, while the savings are often not immediately visible or quantifiable in the short term.
Beyond cost, another major barrier is doubt about the durability and lifespan of the technology. Businesses worry that energy-efficient equipment—like variable frequency drives (VFDs), solar panels, or automated lighting systems—may degrade quickly, be incompatible with harsh industrial environments, or become difficult to maintain without long-term technical support.
However, in practice, many pioneering businesses that have dared to invest early are already seeing clear benefits—from lowering electricity costs to improving working conditions and enhancing brand image and competitiveness. After successful initial implementation, most of these companies expand their investments into other energy-saving projects, gradually building an optimized and sustainable operating model.
KTG Industrial – Committed to energy efficiency for sustainable development
The rooftop solar systems installed across KTG Industrial’s factories are among the largest and most reliable in Vietnam.
Vietnam is facing a surge in electricity demand, posing significant economic and environmental challenges. According to Vietnam Electricity (EVN), the national electricity production and import volume in 2024 reached 308.73 billion kWh, up 9.9% compared to 2023 [1].
Recognizing the importance of energy conservation and sustainable development, KTG Industrial has implemented multiple advanced solutions, including:
Rooftop solar power installation
KTG Industrial has invested in and deployed rooftop solar energy systems across its factories and warehouses in industrial parks nationwide. Developed by Phoenix Clean Power and installed by Tona Syntegra Solar, the project utilizes renewable energy to reduce electricity costs and support environmental protection [2].
Next-generation 4.0 smart factories
At the Vietnam Industrial Real Estate Forum 2020, KTG Industrial introduced a new generation of factory designs combining digital technology, automation, and intelligent management. This model integrates the 4.0 ecosystem, including “4.0 Visuals – 4.0 Utilities – 4.0 Services – 4.0 Management,” to optimize operations, improve energy efficiency, and enhance the customer experience [3].
Green growth strategy
As part of its long-term vision, KTG Industrial continues to expand green areas across its projects, promote the use of eco-friendly technologies, and develop eco-industrial park models. This serves as a foundation for meeting green finance standards and increasing appeal to international investors [3].
With clear commitments and tangible actions, KTG Industrial is actively contributing to Vietnam’s Net Zero target by 2050, asserting its leadership in green and sustainable industrial real estate.
Conclusion
Energy efficiency in factories is not just a cost-saving solution—it is a long-term strategy that enhances production performance, protects the environment, and aligns businesses with global sustainability trends. With concrete commitments and practical solutions, KTG Industrial is leading the way, delivering long-term value for businesses and communities—particularly in the areas of electricity and energy savings, as we move toward a globally sustainable future.
References
[1] Online N 2025 January 7 EVN da can bang duoc tai chinh san sang cho cac muc tieu lon trong nam 2025 Nang Luong Viet Nam Online httpsnangluongvietnamvnevn-da-can-bang-duoc-tai-chinh-san-sang-cho-cac-muc-tieu-lon-trong-nam-2025-33673html
[2] KTG CHINH THUC KHAI TRUONG & DUA VAO SU DUNG HE THONG NANG LUONG MAT TROI AP MAI TRONG BAT DONG SAN CONG NGHIEP 2024 June 19 Ktgindustrialcom httpsktgindustrialcomvicompanyktg-chinh-thuc-khai-truong-dua-vao-su-dung-he-thong-nang-luong-mat-troi-ap-mai-trong-bat-dong-san-cong-nghiep-2
[3] Dien dan bat dong san Viet Nam 2023 December 15 Ktgindustrialcom httpsktgindustrialcomnewsletterdien-dan-bat-dong-san-viet-nam
