UNIDO launches initiative to support decarbonization of Viet Nam’s cement industry

Viet Nam’s cement sector is currently the third largest in the world and accounts for approximately 16 per cent of the country’s total greenhouse gas emissions, making its decarbonization essential to achieving the updated Nationally Determined Contribution and the 2050 net-zero commitment.

Funded by the Mitigation Action Facility and implemented by UNIDO in collaboration with international partners including the International Finance Corporation, the Low Carbon Based Construction Association, the Global Cement and Concrete Association, Guidehouse Germany GmbH, and Agence Française de Développement, the project aims to unlock transformative change by addressing financial, technical, structural, regulatory and behavioural barriers across the cement sector. It was developed in close involvement of the Viet Nam Institute of Building Material and Vietnamese Cement Association, and supported by Ministries of Construction, Agriculture and Environment, and Industry and Trade, ensuring that it is designed to meet the local needs.

To this end, the project will establish a tailored financial mechanism to de-risk private-sector investment, enabling the uptake of decarbonization solutions such as limestone calcined clay cement, supplementary cementitious materials and waste heat recovery systems. In parallel, the project will support an enabling framework that includes a national decarbonization roadmap, standards for low-clinker cement, carbon management tools and green public procurement.

Mr. Hoang Huu Tan representing Ministry of Construction emphasized:
“This project marks an important step toward ensuring that Viet Nam can achieve its climate commitments through modern technologies, improved efficiency and an enabling policy environment. We welcome UNIDO and our international partners in supporting this critical transition.”

During the workshop, participants reviewed the policy and regulatory landscape, explored technical innovation pathways and discussed financial solutions that can accelerate sectoral decarbonization in the country. Rasha Abdrabu, Industrial Development Officer at UNIDO, highlighted the project’s vision to deliver long-term, sector-wide transformation:

“This initiative is designed not only to demonstrate viable decarbonization solutions, but to embed them into Viet Nam’s financial, technical and policy systems, ensuring change becomes scalable and self-sustaining. Through strong partnership with national institutions, industry and financial actors, we aim to create a clear business case for low-carbon cement and position Viet Nam as a regional leader in green industrial transition.”

The project is expected to bolster Viet Nam’s broader climate and energy transition agenda, including the Viet Nam Just Energy Transition Partnership, and has strong potential for replication across the country’s cement sector and downstream construction sectors. Upon completion, the project will strengthen the financial ecosystem for industrial decarbonization, enhance technical capacity across government and industry and deliver a comprehensive enabling framework for a sustainable transition to low-carbon cement production.

Le Thi Thanh Thao, UNIDO Country Representative, highlighted UNIDO’s role in supporting Vietnam’s industrial decarbonization:

“UNIDO remains fully committed to supporting Viet Nam in this transition toward inclusive and sustainable industrial development in general, and decarbonization of the cement sector in particularly, in line with the country’s climate goals and broader development ambitions.”

For more information, please contact:
Rasha Abdrabu
Industrial Development Officer, UNIDO

Email: r.abdrabu@unido.org