During 65 years of establishment and development, the Vietnam Electricity Industry has achieved certain achievements, affirming its leading role in ensuring electricity supply for socio-economic development and daily life. activities of the people. However, the power sector still has some major shortcomings that have not been completely resolved, as well as many difficulties and challenges for future development.
Vietnam's electricity industry has a high monopoly since Vietnam Electricity (EVN) is the only entity that holds dominance in all stages from production, transmission, distribution to electricity purchase, and sale. The average load growth rate of Vietnam's electricity industry has consistently reached 10%/year over the past 5 years. Power loss has fallen to 6.5% in 2019, fulfilling the target one year ahead of the 5-year plan assigned by the Prime Minister. The scale of Vietnam's electricity system has ranked 23 in the world and ranked 2nd in the ASEAN. In the structure of the power generation industry, hydropower is currently the most important sector with a total number of operating enterprises up to 275, attracting more than 50% of the entire industry workforce. The amount of electricity generated by hydroelectric plants accounts for about 40% of the total. However, the hydropower potential in Vietnam has been almost fully exploited. Besides, this type of power is unstable and highly dependent on the weather, hence, power shortages in Vietnam often occur, especially in the dry season.
To meet the electricity demand and annual GDP growth rate of 6.5%-7% per year, the electricity sector must increase at least 11-11.5% per year. However, at present, the growth rate of electricity output is estimated at 10% which has not caught up with the market demand. Therefore, the shortage of power sources is inevitable and the need to open doors to all economic sectors participating in the power sector is extremely urgent. Due to the impact of the Covid-19 epidemic on production, trading, and service activities, the electricity sector was more or less affected, although not so significantly. According to the National Load Dispatch Center in the first 2 months of 2020, the electricity consumption of the whole system reached 36.2 billion kWh, equivalent to an average daily consumption of 615 million kWh / day. National electricity consumption increased by 7.5% over the same period last year.
The total demand for investment in the electricity industry by 2030 is expected to be nearly 117 billion USD, equivalent to about 6.88 billion USD/year. Of which 60.6% is for electricity, 30.4% is for transmission and distribution networks. Resolution No. 55 is expected to contribute to eliminating the monopoly in the market, creating a transparent and competitive market where all economic sectors can participate in. However, in the short term, EVN will continue to hold a monopoly position in power transmission, meaning that opening to private investors may start with generators or plants with a smaller scale.
TABLE OF CONTENTS
1. Vietnam’s Economic Situation
1.1. Economic growth
1.2. Trade and prices
1.3. Realized capital, State budget revenue and expenditure
1.4. Import-export activities
1.5. Establishment and dissolution of enterprises
2. Vietnamese Electricity Industry’s Development
2.1. Vietnamese Electricity industry overview
2.2. Enterprises and labour in Vietnam’s Electricity industry
2.3. Key ratios of Vietnam’s Electricity industry
2.4. Electricity industry average financial ratios 2019
2.5. Opportunities, challenges and industry forecasts
3. 10 outstanding companies in Vietnam’s Electricity industry in 2019
LIST OF FIGURES
Figure 1.1.1: Vietnam GDP Growth Rate 2011-2020
Figure 1.2.2: GDP Growth, CPI and Inflation (Last year = 100)
Figure 1.2.1: Total retail sales of consumer goods and services at current prices 2015-2019
Figure 1.2.3: Producer price index by sector compared to the previous quarter
Figure 1.2.4: Commodity terms of trade growth rate 2015-2019 (%)
Figure 1.3.1: Growth rate and structure of social investment capital in the first half of the 2016-2020 period at current prices
Figure 1.4.1: Import-export turnover and trade balance of goods 2011-2019 (US $ billion)
Figure 1.5.1: Enterprise Establishment in H1/2020 (compared to H1/2019)
Figure 2.2.1: Number of enterprises and employees in the power sector
Figure 2.2.2: Number of enterprises and employees in the power generation sector
Figure 2.3.1: Power Generation Output in 2013-2020 (billion kWh)
Figure 2.3.2: Power Sales in 2013-2020 (billion kWh)
Figure 2.3.3: Imported Power from China in 2013-2019 (billion kWh)
Figure 2.3.4: PPI of electricity power generation and distribution (%)
Figure 2.3.5: PPI of electricity power generation and distribution in the first 7 months of 2020 (%)
Figure 2.3.6: Total installed power capacity (MW)
Figure 2.3.7: Installed power capacity in 2018 by investors
Figure 2.3.8: Installed power capacity in 2018 by sources
Figure 2.3.9: Total transmission lines through years (km)
Figure 2.3.10: Total quantity of transmitted power through years (million kWh)
Figure 2.3.11: Power loss rates through years (%)
Figure 2.3.12: Scores and Rankings of Vietnam’s Getting Electricity Index (over 100)
Figure 2.3.13: Growth of average retailing electricity price through years
LIST OF TABLES
Table 1.1.1: GDP growth by sector Q1/2020 at current prices
Table 2.3.1: Adjustments in electricity prices and bills amid Covid-19
Table 2.3.2: Current retailing electricity prices and projected prices according to the Ministry of Industry and Trade’s proposed plans
Table 2.5.1: Total demand of power investment in 2014-2030 (billion USD)
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D - Production & distribution of Electricity, Gas, Steam water and Air-conditioning
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35 - Electricity, gas, steam and air conditioning supply
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351 - Electric power generation, transmission and distribution
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352 - Production of gas; distribution of gaseous fuels through mains
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353 - Manufacture and supply of steam, hot water, air conditioning and ice
