Online Course: Political and Market Framework: Vietnam

Online course
Political and market framework: Vietnam
© Renewables Academy (RENAC) AG

This copyrighted course is part of the series of online study programmes offered by the Renewables
Academy AG. The course materials are provided exclusively for personal or curriculum and course-
related purposes to enrolled students and registered users only. Any further use of this material shall
require the explicit consent of the copyright and intellectual property rights holders, Renewables
Academy AG. This material or parts of it may neither be reproduced nor in any way used or disclosed or
passed on to third parties. Any unauthorised use or violation will be subject to private law and will be
prosecuted.
Berlin, 2018-04-17
Table of content
1 Introduction ......................................................................................................................... 2
2 Electricity market analysis .................................................................................................... 2
2.1 History – early developments ................................................................................................. 2
2.2 History - current reforms......................................................................................................... 3
2.3 Power supply ........................................................................................................................... 4
2.4 Electricity demand ................................................................................................................... 6
2.5 Electricity prices ...................................................................................................................... 7
2.6 Development plans ................................................................................................................. 9
2.7 Grid conditions ...................................................................................................................... 11
2.8 Key market participants ........................................................................................................ 12
2.8.1 Public sector ...................................................................................................................12
2.8.2 Private sector ..................................................................................................................14
2.9 Chapter endnotes .................................................................................................................. 14
3 Renewable energy and energy efficiency sector analysis ..................................................... 16
3.1 Market overview – renewable energy .................................................................................. 16
3.2 Feed-in tariff scheme and availability of PPAs ...................................................................... 18
3.3 Applicable laws, guidelines and government policies ........................................................... 19
3.4 Funding of RE investments .................................................................................................... 21
3.5 Energy efficiency ................................................................................................................... 22
3.5.1 Energy efficiency regulatory framework ........................................................................23
3.5.2 Energy efficiency framework ..........................................................................................24
3.5.3 Energy efficiency programmes .......................................................................................24
3.6 Chapter endnotes .................................................................................................................. 25
4 Summary ........................................................................................................................... 27
4.1 Summary ............................................................................................................................... 27
4.2 References ............................................................................................................................. 27
Political and Market Framework: VIETNAM Page 1 of 31

17/04/2018
1 Introduction
This course provides a summary of the political and market frameworks on renewable energy (RE)
and energy efficiency (EE) in Vietnam. The sections cover the current support mechanisms for RE and
EE, the regulatory framework as well as governmental targets. In addition, the market structure, the
main institutions and specific market trends of the power sector are covered.
Learning objectives of the course

After completion of this course you should be able to
• understand the factors that helped shape the current state of the electricity market in
Vietnam and
• identify the market players, institutions and policies that influence the sector, as well as the
incentives available to private participants.
2 Electricity market analysis

2.1 History – early developments
Learning objectives: After this page you should be able to
• describe the early development of the electricity sector in Vietnam.
The country’s infrastructure was in a dismal state after the US-Vietnam War had ended. With its
people and economy heavily dependent on rice production, the earliest post-war electrification
programmes focused on connecting rice-producing areas of the Red River Delta in the north and the
Mekong River Delta in the south. The goal was to bring modern industrial technology to rice
production while supporting budding local industries.
In the 1980s, the country’s large hydropower resources were tapped, providing cheap, home-grown
power. The electrification of irrigation systems and small rural industries was prioritised to support
economic development at the local level. However, since households were not prioritised, the
government’s electrification programme created fully electrified districts with many non-electrified
households.
In 1995, the state utility Electricity of Vietnam (EVN) was established, which consolidated generation,
transmission and distribution under a single entity. Other reforms followed, including [1]
a. financial and management restructuring of sector entities leading to commercialisation of
operations;
b. the introduction of a legal and regulatory framework;
c. the introduction of private sector capital; and
d. an enhanced rural electrification programme to shift focus from agriculture and industry to
households.

17/04/2018
Historic development of the Vietnamese electricity sector after the US-Vietnam War (Source:
RENAC)
2.2 History - current reforms

• illustrate the development of the electricity market in Vietnam in the beginning of the 21st
century and
• describe the restructuring of the EVN in this time period.
Vietnam’s fast-paced economic growth starting in the mid-1990s resulted in the surge of domestic
demand for electricity. By the mid-2000s, the state-dominated sector was unable to keep pace. The
government’s indirect subsidies to EVN – fuel at submarket prices, low interest loans – distorted the
market and discouraged private sector investment in spite of liberalisation. The electricity supply that
used to be adequate and reliable was soon marked by shortages and blackouts.
Hoping to ensure the sustainability of the sector, the government enacted the Electricity Law in
2005, which ushered in the current wave of reforms. The law was amended in 2012 shifting the focus
towards regulations on investments in power plant project development, power purchase, sale and
electricity prices, among others. [2] A roadmap establishing the electricity market for gradual
implementation was approved with the following components and timelines: the generation market
(2005-2015), the competitive power trading or wholesale market (2016-2021) and the retail
competition market (after 2021) (see figure).
EVN was restructured as a holding company in 2009 after the unbundling of its power generation
assets. Its name was also changed to Viet Nam Electricity, while retaining the acronym EVN. In 2010,
five power corporations were established under EVN: Hanoi Power Corporation, Ho Chi Minh City
Power Corporation, Northern Power Corporation, Central Power Corporation and Southern Power
Corporation. They are responsible for the distribution and retail of electricity at 110 kV and below, as
well as developing and operating 220 kV assets in their respective license areas. The power

17/04/2018
generation monopoly was also reorganised into three companies - PetroVietnam, National Coal
Mineral Industries and EVN. These companies are initially 100% EVN-owned but are scheduled to be
separated from EVN and opened up to private participation upon implementation of the wholesale
electricity spot market.
Meanwhile, the Electric Power Trading Company was established to serve as the single buyer of
electricity, while the National Power Transmission Company was founded to operate the national
grid alongside the system operator, National Load Dispatch Center [3].
Road Map of Power Sector Reforms per Decision 63/2013/QD-TTg (Data source: ADB 2015a)
2.3 Power supply

• explain the share of power generation sources of the electricity market in Vietnam.
Historically, Vietnam's generation mix has been hydro-dominated. However, this is changing rapidly
because only coal power plants are added to cover increasing demand, while no hydro power plants
are added to the system. In five years, the share of coal-fired generation in total output has increased
more than two times from 17% in 2010 to 36.92% in 2015. In the same year, hydropower's share was
around 35.25%, less than that of coal. [4] Total installed capacity in 2015 was 37,923 MW.
Vietnam Electricity (EVN), a state-owned holding group that oversees generation, transmission and
distribution assets, contributes 60% of installed capacity, while the rest is from the private sector.
Private sector investments are classified e.g. as build-operate-transfer (BOT) if the assets are foreign-
owned and operated for the first years of operation before they are transferred to the government,
i.e. EVN to continue operation. Another category is domestic investors who are classified as
independent power producers (IPP).
The country generated 145,500 GWh of electricity in 2014, consumption was 128,400 GWh during
the period. The difference is due to losses in power transmission and distribution (approx. 8.5% in
2014) and import/export of power. Peak demand more than doubled from 2005, while per capita
consumption was 158% higher than the 2005 level. The electricity production in 2015 was 162,000
GWh, which means an increase of 11.34% from the previous year.
To supplement its power needs, the country imports approximately 2,025 GWh from China and 450
GWh from Lao PDR. However, it also exports 885 GWh to Cambodia [5].

17/04/2018
Installed capacity in Vietnam, as of 2015 (may not add up due to rounding) (Data source: ERAV 2016,
MOIT 2016)
Installed capacity and sources in Vietnam [MW], end of 2014 (Data source: EVN 2015)

17/04/2018
2.4 Electricity demand
• describe the share of electricity demand from various economic sectors and
• explain the development of power consumption in Vietnam.
Aside from fast economic growth rates, significant improvements in the electrification rate are a
major factor in demand growth. From a 50% electrification rate in 1995, only 2% of the population
had no access to electricity by 2014. These are mainly communities in less developed and sparsely
populated mountainous areas in the northwest, as well as on isolated islands [6].
In 2014, the industry sector accounted for 53.9% of demand, followed by the commercial and
residential sector at 35.6%. For the 2016-2020 period, overall demand is expected to grow at an
average rate of 10.5% per annum, and by 8.0% per annum for the 2021-2030 period.
Electricity demand, actual (2005-2014) and projected (2020-2030) may not add up due to rounding)
(Data source: ADB 2015a)

17/04/2018
Electricity consumption by sector, 2014 (may not add up due to rounding) (Data source: MOIT, 2015)
2.5 Electricity prices

• describe the regulation of the electricity tariffs by the Vietnamese government.
Electricity tariffs in Vietnam are among the lowest in the region, primarily due to pricing policies that
lead to indirect subsidies (i.e. low price of domestic coal and fossil fuels).
In 2015, tariffs averaged 1,622 VND/kWh = USD 0.076/kWh. In December 2017, the average tariff was
increased to 1.720,65 VND/kWh, which is still equivalent to USD 0.076/kWh due to the Vietnam
Dong’s devaluation to the US Dollar. [7]
The government strictly regulates electricity retail prices, with adjustments recommended by MoIT
and requiring approval by the Prime Minister. A unified tariff is applicable across the country and is
low in comparison with other countries in the region. To attract more investment from the private
sector in developing IPP projects, MoIT and EVN have been working on a roadmap for price increases
and gradual elimination of government control. According to current regulation EVN can increase the
power retail price up to 7%, twice a year, without approval from Ministry of Industry of Trade or the
Prime Minister. [8]

17/04/2018
Viet Nam’s average power tariffs [VND/kWh] (Data source: UNDP 2016, p.20)
Average tariff for selected categories, 2015 (Data source: UNDP 2016)

17/04/2018
Average Electricity Tariff in Vietnam is low compared to other countries in 2015 (Data source: UNDP
2016, p. 24)
2.6 Development plans

• understand the Vietnam government’s development plans regarding the electricity sector.
Moving forward, to meet the projected rapid rise in demand, the Vietnamese government seeks to
double 2014’s installed capacity to 60,000 MW by 2020, and quadruple it to 129,500 MW by 2030,
under the Revised Power Development Plan VII (revised PDP VII). Much of this growth will come from
coal-fired thermal plants, followed by renewables and conventional hydro. The government also
plans to introduce nuclear power into the mix by 2030, contributing 4,600 MW or 3% of total
installed capacity.
However, the National Assembly of Vietnam approved to stop development of the nuclear power
plants on the 21st November 2016. Alternative sources to replace nuclear power are identified as
coal-fired power, renewable energy, LNG power and electricity import from Laos [9].
According to the revised PDP VII, total investment (without BOT projects) required for the period
from 2016 to 2030 shall be equivalent to USD 148 billion, in which around USD 40 billion are required
for 2016-2020 and around USD 108 billion are required for 2021-2030. The investment distribution
between power generation and network development is 75% and 25%, respectively. [10]
Meanwhile, the country will need to import more coal to meet its targets due to insufficient domestic
production. For 2015-2030, some 520 million tonnes (6,000 kcal/kg) will need to be imported. By
2023, LNG supplies will also need to be imported for the two gas-fired plants that will contribute
approximately 6,000 MW in additional capacity to the grid.

17/04/2018
Target installed capacity by 2020 and 2030 (Data source: Nguyen 2016)
Target investments in installed capacity for 2020 and 2030 (Data source: MOIT 2015)

17/04/2018
Demand and supply projections for coal for electricity generation (Data source: VGP 2016)
2.7 Grid conditions

• explain the operational conditions and investment needs of the Vietnamese power grid.
Vietnam’s transmission and distribution (T&D) losses were largely in line with the world average at
8.60% in 2014. Of this amount, 6.11 percentage points resulted from distribution losses while 2.49
percentage points were due to transmission losses. The country’s T&D losses have been gradually
improving over the past seven years due to continuous infrastructure improvements.
From 2006 to 2010, the government invested USD 3 billion in order to rapidly expand the country’s
power transmission and distribution system. 8,405 km of 110-kV-500-kV lines with a total capacity of
26,083 MVA were commissioned, along with 58,100 km and 13,600 MVA of medium-and-low-voltage
lines (35kV to 0.4 kV). By 2014, transmission assets comprised more than 21,900 MVA of capacity at
500 kV substations and over 30,726 MVA of capacity at 220 kV substations. There were 6,755 km of
500 kV and 12,513 km of 220 kV transmission lines.
Five distribution companies under the authority of EVN handled distribution and retail supply to
some 22.1 million electricity users in 2014. Distribution assets comprised more than 16,700 km of
transmission lines and 35,000 MVA transformer capacity at 110 kV, and 435,000 km of transmission
lines at 53,200 MVA transformer capacity at 6-35 kV. Power corporations also handle 55 km of
transmission lines at 1,875 MVA transformer capacity at 220 kV [11].
For the 2014-2020 period, the government’s target is some 3,000 km of new 500 kV transmission
lines and 7,000 km of new 220 kV transmission lines. An estimated USD 17.6 billion in investments
are required to meet these targets [12]. The development of a “smart grid” is also under way with the
help of the World Bank [13].

17/04/2018
Power transmission and distribution losses 2008-2014 (Data source: ADB 2016)
2.8 Key market participants

• identify key players in the electricity market in Vietnam and

• point out the role of the stakeholders in the market.
2.8.1 Public sector

The Ministry of Industry and Trade (MOIT)
MOIT is the government agency mandated to draw up national energy policy (in coordination with
the Ministry of Finance and other relevant ministries and branches) and to exercise supervisory
responsibilities for the energy sector both as the line ministry and as the ministry with oversight
responsibilities for state-owned energy enterprises.
Specifically, MOIT approves and implements plans regarding electricity, new energy, renewable
energy, energy saving and efficiency, oil and gas and the mining and processing of minerals (in
coordination with the Ministry for Natural Resources and Environment) [14].
Electricity Regulatory Authority of Vietnam (ERAV)

ERAV was established in 2005 as a regulator under MOIT following the initiation of reforms in the
power sector [15]. Among others, it is the lead agency for the implementation of power reforms,
particularly the development and regulation of power markets and monitoring of the electricity
supply/demand balance [16].
Vietnam Electricity (EVN)

Vietnam Electricity is the main power utility in Vietnam. It is a holding company with a series of
wholly-owned subsidiaries and majority stakes in partially-owned firms. It started out as a vertically-
17/04/2018
integrated power company named Electricity of Vietnam, which was partially restructured in 2003 to
meet its capital investment requirements and improve operation of the country’s power system. In
January 2009, EVN was legally unbundled, became a holding company and changed its name to Viet
Nam Electricity [17]. Today, EVN, together with its subsidiary Gencos, accounts for some 60% of total
installed capacity in power generation.
Vietnam National Coal Mineral Industries (Vinacomin)

Vinacomin, established on 10 October 1994, is a state-run mining company responsible for the
production and processing of coal in the country [18].
PETROVIETNAM (PVN)
PVN is the state-owned company primarily responsible for implementation of the provisions of the
Petroleum Law, including overseeing all petroleum activities and approving contracts for
organisations and individuals operating in petroleum fields [19]
National Power Transmission Corporation (NPTC)

NPTC is a 100% EVN-owned entity established in 2008 as a result of the reorganisation of EVN. It
oversees the 500-kilovolt (kV) and 220-kV transmission system and the five regional power
distribution companies [20].
National Load Dispatch Center (NLDC)

NLDC is the system market operator, established in 1994 to set the stage for operation of the North-
South 500-kV ultra-high voltage power transmission system. It was tasked with operating the power
system and managing the electricity market upon implementation of the wholesale electricity spot
market in 2015. Like other 100% EVN-owned companies, NLDC was designed to eventually separate
from EVN.
Structure of the Power Sector in Vietnam (Data source: ADB 2015a)

17/04/2018
2.8.2 Private sector
Phu My 3 (740 MW natural gas) is the first private investment in the power sector in Vietnam, under
a 20-year BOT contract, commissioned in March 2004. The project was invested by a concession of
British Petroleum (BP), SembCorp, Kyushu Electric Power Co and Sojitz Corp, in which BP held 33.33%
equity stake. In 2014, BP transferred its stake to SembCorp, leading to an equity stake of 66.67% in
Phu My 3 held by SembCorp [21]. SembCorp is a Singaporean developer who is well-known for the
development of a series of Vietnam-Singapore Industrial Zones in Binh Duong, Quang Ngai, Bac Ninh
and Hai Phong. SemCorp is also the developer of a 1,200 MW power plant in Quang Ngai which is
under development [22].
The second private investment in the power sector in Vietnam, also under a 20-year BOT contract, is
Phu My 2-2 plant (715 MW natural gas) by the concession of EDF, Sumitomo and Tepco [23].
The third and also largest private investment in the power sector in Vietnam (as of 2016) is the Mong
Duong 2 BOT coal-fired power plant with a generation capacity of 1,240 MW, owned by AES (51%),
POSCO Power Corp. (30%) and Stable Investment Corporation (a wholly-owned subsidiary of China
Investment Corporation, 19%). It started commercial operation in May 2015. This shows that it took
10 years from the implementation of Electricity Law until the third private investment project in the
power sector was realised [24].
Other private developers for thermal power plants which are under development include India’s Tata
Group (Long Phu 2) [25], Malaysia’s Teknik Janakuasa Sdn Bhd (Duyen Hai 2), China-based Southern
Group, the Vietnam National Coal and Mineral Industries Group (Vinh Tan 1) and Malaysia’s Jaks
Resources Bhd (Hai Duong 2) [26].
In the renewable energy sector, GEC is one of the largest private hydro developers, with 84.4 MW of
installed capacity across 15 run-of-river hydro plants. In the coming years, the company plans to
include other technologies such as solar and wind in its portfolio [27].
The total installed wind power capacity (almost 200 MW by the end of 2017) was developed by four
private developers namely REVN, Cong Ly, Thuan Binh, and Tan Hoan Cau. REVN is the first wind farm
developer in Viet Nam with the Tuy Phong project of 30 MW located in Binh Thuan province[28].
Cong Ly is the developer of Bac Lieu wind farm with capacity of 99.2 MW (phase 1 and 2) and is
developing another 200 MW capacity (phase 3 and 4) [29]. Thuan Binh is the developer of Phu Lac
wind farm with a capacity of 24 MW. The company has recently released the plan to build another 4
wind farm projects with a combined capacity of 500 MW until 2030, together with other solar power
projects [30]. Tan Hoan Cau is the developer of two wind farm projects namely Huong Linh 1 and
Huong Linh 2 with the combined capacity of 60 MW, of which the Huong Linh 2 project had put five
turbines with a total of 10 MW into operation in 2017[31].
2.9 Chapter endnotes

[1] ADB 2011
[2] Viet Nam News 2013
[3] ADB 2014
[4] ECA 2016
[5] ADB 2015a
[6] ADB 2015a
[7] MIT 2017
[8] export.gov, 2016
[9] VPCP 2016
[10] VGP 2016
[11] ADB 2015a
[12] MOIT 2015
17/04/2018
[13] World Bank 2016a
[14] MOIT (n.d.)
[15] ADB 2015b
[16] ERAV 2010
[17] EVN 2015
[18] Vinacomin (n.d.)
[19] Petrovietnam (n.d.)
[20] ADB 2015b
[21] Dealstreet Asia 2014
[22] Sembcorp 2012
[23] Power-technology.com (n.d.)
[24] AES 2015
[25] Vietnam Breaking News 2016
[26] Hovells (n.d.)
[27] IFC 2016a
[28] MOIT/GIZ 2017a
[29] tuoitrenews.vn 2017
[30] The windpower 2017
[31] VOV 2017

17/04/2018
3 Renewable energy and energy efficiency sector analysis
3.1 Market overview – renewable energy
• explain the basic features of the renewable energy market in Vietnam and
• identify the formulated targets for each RE technology and the installation potential.
As of 2014, renewable sources including conventional hydro account for some 15,703 MW or 46% of
total installed capacity. Excluding conventional hydro, the contribution of renewables to total installed
capacity is negligible at 2,093 MW, representing six percent of the total. This is dominated by small
hydro plants (<30 MW) with a total installed capacity of 1,984 MW [1].
With conventional hydro resources almost fully utilised, the country is looking to other fuel sources to
meet the expected growth in demand. While coal is envisioned to be the largest contributor to total
installed capacity by 2030, the government wants renewable sources (particularly solar) to play a
bigger role [2].
Based on the revised Power Development Plan (PDP) released in March 2016, the Vietnamese
government target is 12,000 MW of solar installed capacity by 2030. The previous version of the PDP
did not include solar power. The revised PDP target is extraordinary considering that estimates of
current installed capacity only ranges from 1.5 MW to 4 MW.
Solar energy has received additional interest from authorities as a result of recent studies confirming
the country’s solar energy generation potential, estimated at 18 TWh/year based on a suitable land
area of 220,000 km2. In January 2018, a recent study by GIZ suggests that the economic potential of
ground-mounted solar in Viet Nam reaches 7,000 MW until 2020, and possibly to reach several
hundred Gigawatt between 2021 and 2030 due to the decrease of investment costs and financing
costs [3].
Wind is also seen as a significant source of electrical energy in the coming years, with a government
target of 6,000 MW of installed capacity by 2030. Due to system constraints, the country’s estimated
technical wind potential ranges from about 760 MW at 5% of system capacity to 3,000 MW at 20% of
system capacity. These figures are well below the government’s 2030 installation target, but technical
potential should increase along with improvements in infrastructure.
The potential for energy generation from agricultural residues is also significant, with about
11 million hectares of land under cultivation and nearly 60% of the workforce engaged in the sector.
Rice production accounts for three quarters of the total cultivated area, while the rest is used mainly
for maize, cassava, sugarcane, coffee and rubber. While the share of agriculture in GDP has fallen over
the years from as high as 46% in 1988 to about 18% in 2014, the production of rice, cassava, maize
and sugarcane has grown significantly over the years. The theoretical energy generation potential of
agricultural residues is estimated at 84,875 GWh/year. The technical potential should be much less
than this, due to the difficulty of collecting residues and their inclusion in the grid, but the
government’s target of 12,000 GWh represents only 14% of the theoretical potential [4].
Meanwhile, the total potential for small hydropower is estimated at 7,200 MW. So far only about 28%
of this is being exploited [5]. The 2017’s avoided cost tariff for small hydro (<30 MW) ranges from
USD 0.0136/kWh to USD 0.0285/kWh, depending on seasonal and daily peaks, with a capacity price is
USD 0.098/kWh [6]
Details of the avoided cost tariffs and FiT rates are discussed in the next section.
IFC estimates that by 2030, Vietnam’s potential investment in renewable energy totals USD 59 billion,
with over half of this (USD 31 billion) in solar PV, another USD 19 billion for small hydropower
projects and USD 9 million for others such as wind and biomass [7].

17/04/2018
Targeted renewable energy capacity until 2020 and 2030 (Data source: Nguyen 2016)
Estimated potential capacity of selected renewable energy sources (Data source: ADB 2016)

17/04/2018
3.2 Feed-in tariff scheme and availability of PPAs
• apprehend the feed-in tariff system applied in Vietnam and

• be able to identify potential contract partners to enter into PPAs.
The government uses a Standardised (non-negotiable) Power Purchase Agreement (SPPA) with EVN
or its authorised subsidiary as counterparty for power plants below 30 MW. It also uses a standard
tariff for small generators based on the avoided costs for EVN. Fixed feed-in tariffs (FiT) for selected
grid-connected technologies (such as wind, waste-to-energy, biomass, and solar PV) that apply for 20
years are also available [8].
Avoided cost tariff (ACT) was first introduced by Decision 18/2008/QD-BCT of Ministry of Industry and
Trade (MOIT) in 2008 by the Decision 18/2008/QD-BCT that encourages daily peaking small hydro
projects with a seasonally and time-of-day differentiated tariff, with high remuneration for dry season
peak energy. The ACT is calculated and issued annually, applying to small renewable energy power
plants with installed capacity of less than 30 MW. However, until now, the Decision 18 has only been
applied to small hydropower projects since wind, biomass and other RE sources are regulated by
other Decisions and Circulars. [9]
In 2011, based on Decision No. 37/2011/QD-TTg, the government introduced a wind FiT rate of
USD 0.078/kWh composed of a USD 0.068/kWh fixed purchase price and a USD 0.010/kWh
government subsidy through the Environment Protection Fund. The wind FiT rate is adjustable
according to fluctuations in the VND/USD exchange rate [10]. Despite the growth of wind power
installations, the wind FiT is still considered to be unattractive to most investors. Challenges such as
the lack of a central coordinating body for wind power projects, limited capacity to manage and
operate wind power projects and the lack of a grid integration standard are also seen as barriers to
greater investments in the sector [11]. In September 2017, the MOIT proposed to the Prime Minister
a new draft Decision to amend the Decision No. 37 on the support mechanisms for development of
wind power projects in Vietnam (Draft Decision). The Draft Decision proposes an increase of the FiT
from USD-cents 7.8 per kWh to USD-cents 8.77 per kWh for onshore wind power projects and to
USD-cents 9.97 per kWh for offshore wind power projects [12]. However, as of March 2018, there is
still no approval of such MOIT’s FiT proposal.
Meanwhile, based on Decision No. 24/2014/QD-TTg, the FiT rate for biomass co-generation projects
currently stands at USD 0.058/kWh, which is adjustable based on exchange rate fluctuations [13]. For
pure biomass generation, the avoided cost tariff is approximately USD 0.070/kWh. The avoided cost
rate is based on the production cost per kWh of a coal-fired power plant that runs on imported coal
[14]. Currently, there are 8 sugar mills in the country which have a total power generation capacity of
477 MW, of which 99.8 MW are connected to the national grid. However, the Vietnam Sugarcane and
Sugar Association (VSSA) said that the current FiT for biomass power at sugar mills is too low, and
VSSA is urging the Government to increase the FiT [15].
Decision No. 31/2014/QD-TTg provides a FiT rate of USD 0.0728/kWh for the combustion of landfill
gas and USD 0.1005/kWh for waste incineration.
In April 2017, the Prime Minister signed Decision No.11/2017/QD-TTg on mechanisms for
encouraging solar power development in Vietnam. In September 2017, MOIT issued the Circular
16/2017/TT-BCT on Solar Power Project Development and Standardized Power Purchase Agreement
for Solar Power Projects. According to these legal documents, the price at which Electricity of
Vietnam (EVN) is going to buy solar power is VND 2,086/kWh (9.35 USD-cents/kWh), applied for both
ground-mounted and net-metering roof-top solar PV projects. However, the Decision
No.11/2017/QD-TTg is only valid until June 30, 2019, and only the projects that reach commercial

17/04/2018
operation date (COD) before June 30, 2019 are eligible for the regulated FIT. There is still no clarity
about the FiT for solar PV projects after June 30, 2019. [16]
FiT payments are typically made by EVN. For small hydro and solar PV, the FiTs are paid in full by EVN.
In the case of wind power, waste-to-energy and biomass, an additional subsidy of 1 USD-cent/kWh is
paid by the Environment Protection Fund to EVN.
Summary of key legislations on Support Mechanisms for renewable energy sector in Vietnam (Data
source: GIZ 2016, RENAC 2018)
3.3 Applicable laws, guidelines and government policies

• identify the laws, policies, regulations and safeguards governing the renewable energy sector
in Vietnam and
• identify fiscal incentives for renewable energy projects.
The National Energy Development Strategy 2020 (with outlook to 2050) outlines the government’s
planned structural reforms. Key highlights include:
• Developing sustainable energy in line with the national socio-economic development
strategy and environmental protection goals;
• Developing a complete energy market, diversifying the ownership of energy assets and
gradually reducing subsidies;
• Developing clean, renewable energy; and
• Increasing energy efficiency and reducing transmission and distribution losses.

17/04/2018
Overview of policy measures and mechanisms to support RE in Vietnam (Source: RENAC)
The Power Development Plan (PDP) outlines the government’s renewable energy targets. These
targets were discussed in the previous sections.
To encourage private sector investment in the renewable energy sector, authorities have rolled out
avoided cost tariffs and FiT, which were also discussed in previous sections.
The Investment Law provides incentives to both domestic and foreign firms that operate in the
renewable energy sector. Furthermore, the government has also established over 250 special
industrial zones and 20 economic zones with special incentives for renewable energy players.
Investment Law tax incentives (Data source: ADB 2015b)
Fiscal incentives for renewable energy projects also include

• preferential corporate income tax rates;
• exemption from import tax on equipment and materials; and
• accelerated depreciation.
Incentives in the form of export credits are available for renewable energy projects, which can cover
up to 70% of the construction cost. The credits apply for 12 years and are benchmarked according to
the interest rates for government bonds. Additional support measures (such as land rent exemptions)
are also available for projects that comply with the Clean Development Mechanism [17].
An updated decree on Public-Private Partnerships (PPP) came into effect on 10 April 2015, which
covers power projects. Relevant features include [18]:
• Introducing and regulating new contract types, such as build-own-operate (BOO), build-
transfer-lease (BTL), build-lease-transfer (BLT) and operate-manage (O&M);
17/04/2018
• Removing the 30% ceiling on the State’s capital participation in project implementation;
• Establishing new funding sources for project preparation, including the USD 30 million
Project Development Facility (PDF) to assist authorised state agencies (ASA) with project
screening, preparation of project proposals and feasibility studies as well as bidding
procedures;
• Allowing unsolicited proposals;
• Allowing direct agreement on step-in rights between the lenders and the ASA; and
• Incentives such as:
o Tax incentives for investors and contractors;
o Reduced land use fees, assurance of right to possess properties, assurance of
unchanged land purpose/zoning;
o Guarantees regarding the provision of raw materials, the sale of products and
services and the performance obligations of state enterprises that transact with the
investor or project; and
o Assurance of foreign currency balance.
Unfortunately, there is no renewable energy law regulating the sector. As a result, there are no clear
guidelines on how to implement tax incentives for project developers. In addition, power producers
are currently unable to sell directly to an off-taker, as EVN continues to be the only wholesale power
buyer in the country [19].
In 2019, the government is set to fully implement Decision 8266/QD-BCT, establishing a competitive
electricity wholesale market. However, it is still unclear whether power generators of less than30 MW
will be allowed to participate. Regulations covering the wholesale market are expected to be
completed by June 2017 [20].
3.4 Funding of RE investments

• describe the potential sources of funding for renewable energy projects in Vietnam.
The country’s major commercial banks offer financing for renewable energy projects. The World Bank
through the Vietnam Renewable Energy Project has helped build the capacity of commercial banks to
handle the financing needs of the sector.
The project, which closed on 30 June 2016, offered a financing facility using commercial banks as
conduits for loans to eligible private sector projects not exceeding 30 MW. It also included a technical
assistance component involving application, monitoring, project management and capacity building
for partner banks and relevant government offices. As of the closing date, the project had trained
some 110 trainees from banks and sponsors, improving the capacity of key personnel at commercial
banks to evaluate and implement loans for renewable energy projects [21].
Private investors may also secure financing from the International Finance Corporation (IFC), which
offers a diverse range of products and services for renewable energy and energy efficiency projects,
including loans, equity finance and local currency financing, among others [22].
Meanwhile, investors can also avail of the financing facilities offered by the government.
The Vietnam Development Bank (VDB) is a policy bank in Vietnam that provides on-lending of the
government’s foreign loans including renewable energy and energy efficiency projects. VDB received
funding from international donors such as WB, ADB, KfW, EIB, AFD, JICA, JBIC, Eximbank, KEXIM etc.
VDB is the debt financier to Bac Lieu wind farm (on-lending from Eximbank) and many hydro projects
such as Dong Nai 2, Xekaman, Song Bung 4, Dong Van, Song Lo 2, Song lo 4 among others [23].
17/04/2018
The Vietnam Environmental Protection Fund (VEPF) offers soft loans and interest rate support. VEPF
loans have an interest rate of 3.6% and can cover up to 70% of a project’s investment costs. The
National Foundation for Science and Technology Development provides interest-free or low-interest
loans for green technology projects. At the local level, some local governments have established their
own “green funds”, such as Ho Chi Minh City’s Fund for Cleaner Production. Other potential sources
include the National Technology Innovation Fund and the National SME Development Fund, which
both offer financing for SMEs in general [24].
Funding sources for renewable energy projects in Vietnam (Source: RENAC)
3.5 Energy efficiency

• determine the energy efficiency potential in Vietnam caused by the intense energy
consumption,
• paraphrase the regulation measures of the Vietnam Energy Efficiency Programme (VNEEP) and
• recite the energy efficiency financing programs in Vietnam.
Vietnam’s industry is generally more energy intensive than the global energy intensity benchmark.
For example, the energy intensity is 10 times larger in Vietnam than that in Japan. Vietnam’s iron and
steel plants use twice as much energy as similar plants around the world to produce the same
amount of steel. This is because this and many other sectors, such as cement and textiles, use
relatively old technologies.
According to the WB, potential for energy savings in Vietnam is expected to be at least USD 55 billion
over the period 2014–30, in which energy efficiency in industrial sector could save USD 10 billion and
transport sector could provide another USD 22 billion saving. [25]
The successful implementation of identified energy efficiency measures would reduce grid capacity
additions by 11,700 MW in 2015–30, resulting in reduction of CAPEX by USD 19.1 billion capacity
additions, and reduction of imported coal by 24 million tons per year.
Another survey by the MOIT in 2016 showed the energy efficiency potential and required investment
for selected industries as in the figure below.

17/04/2018
Estimation of energy efficiency potential and investment needs (Data source: MOIT 2016)
3.5.1 Energy efficiency regulatory framework

The Energy Efficiency and Conservation (EE&C) Law (2010) is the foundation for energy efficiency
regulatory framework in Vietnam, as shown in the figure below. There are about ten decisions, decrees,
and circulars as secondary legislation to support the law, but the law is barely enforced and has had
limited success. Furthermore, the implementing institutions need to be strengthened with additional
resources.
Overview of EE national framework and its related legislation (Source: EPRO Consulting JSC: Policy
Review, June 2015)
17/04/2018
3.5.2 Energy efficiency framework
The Vietnam Energy Efficiency Programme (VNEEP) was launched in 2006 to serve as the country’s
first comprehensive plan to improve energy efficiency. Law No. 50/2010/QH12, which has been in
force since 2011, provides regulations on energy labels, sectoral energy efficiency standards for
appliances, equipment, technology and products, energy efficiency requirements in building codes
and construction practices and requirements covering utilities. From 2011 to 2015, the government
allocated some USD 41 million for various energy efficiency and conservation programmes [26].
Energy savings in the power subsector were estimated at 18,089 GWh in 2013, representing 12.3% of
total consumption. In addition, by June 2014 the government had awarded energy efficiency labels to
more than 6,215 models of 13 different equipment types. Twelve energy efficiency centres have also
been set up across the country [27].
Besides VNEEP, the People Committee allocates its own budget for EE awareness raising, conducting
energy audits, setting up energy management models and even supporting EE investment and other
additional activities as funding in technology change, reallocation... in local conditions with the same
financial supporting levels as regulated under VNEEP. VNEEP is the main national financial source for
implementation of EE in provincial levels. There is also provincial budget to implement EE&C Law and
being explored in some provinces. [28]
The industrial sector is dominated by state-owned enterprises (SOEs), which makes it harder for SMEs
to thrive. Economic liberalization would encourage the competition that drives firms to be efficient.
The current energy prices in Vietnam are generally lower than in other Association of Southeast Asian
Nations (ASEAN) countries. This largely discourages energy efficiency, and the lack of market data
makes it difficult to analyze the market. Energy service companies (ESCOs) are at a nascent stage—
there are a couple of well-established ESCOs such as Ho Chi Minh City Energy Conservation.
Additionally, there is limited investment (in terms of both fiscal and other resources) in developing
energy-efficiency research facilities and testing laboratories. Sixty percent of lending is tied to SOEs,
and this creates a barrier for private enterprises that would otherwise use energy efficiency as a
competitive instrument. [29]
3.5.3 Energy efficiency programmes

Energy-efficiency financing and implementation capacity are limited. Current and recent energy
efficiency programs in Viet Nam include the following: [30]
• The Ministry of Industry and Technology (MOIT) has a USD 1 million subsidy fund that offers up to
30%of a project’s cost with a cap of USD 250,000 per project. The government also funds energy
audits, technical assistance, and training, and promotes energy efficiency.
• The Demand-Side Management (DSM) and Energy Efficiency Project, funded by the World Bank
and Global Environment Facility (GEF) and implemented from 2003 to 2010, supported the
establishment of a DSM department in EVN, the public utility. Further, it supported the
implementation of several DSM programs, the development and implementation of a pilot
commercial energy efficiency program, and policy development and the capacity building of
MOIT’s Energy Efficiency and Conservation Office.
• In 2011, MOIT and the World Bank undertook to implement several VNEEP activities, as part of
the World Bank and GEF Viet Nam Clean Production and Energy Efficiency Project. MOIT, through
its Department of Science, Technology and Energy Savings, is responsible for the implementation
of the following three project components: energy efficiency action plans for key industry sectors;
development of energy service providers; and capacity building for program management, and for
monitoring and evaluation.
• The program Mainstreaming Energy Efficiency Through Business Innovation Support (MEET-BIS) in
Viet Nam, from 2009 to 2013, was funded by the European Commission. The program had five

17/04/2018
components: (i) commercially viable clean production technologies; (ii) showcases, smart business
support, and business innovation packages, in partnership with the private sector and financing
institutions; (iii) commercial clean production technologies for SMEs; (iv) sustainable, commercial
viable energy efficiency technologies and services for SMEs; and (v) project and financial
management, project monitoring and evaluation, procurement, and dissemination of lessons. By
the second quarter of 2013, the project had promoted improved technologies among 3,000 SMEs
and mobilized over 420 SME investments valued at EUR 2.4 million.
• The European Commission–funded ASEAN Energy Managers Accreditation Scheme (AEMAS),
2010–2014, has five components: (i) establishment of the AEMAS institutional structure; (ii)
training and accreditation of energy managers, and certification of energy end users; (iii)
implementation and monitoring of energy-saving activities; (iv) awareness promotion; and (v)
project management, and monitoring and evaluation.
• The Energy Efficiency and Cleaner Production Financing Program, funded by the World Bank and
the International Finance Corporation (IFC) since 2010, includes: (i) advisory and investment
services to selected financial institutions, (ii) technical assistance to develop the consultancy
market for investments in energy efficiency, and (iii) promotional activities to increase awareness
among local industries.
3.6 Chapter endnotes

[1] ADB, 2015a (Energy Roadmap 2016)
[2] MOIT 2015
[3] MOIT/GIZ 2018
[4] ADB, 2015c
[5] ADB, 2015a
[6] MOIT 2016
[7] IFC, 2016b
[8] ADB, 2015a
[9] GIZ 2016
[10] Minister 2011
[11] Ellis 2016
[12] Baker & McKenzie 2017
[13] Minister 2014
[14] Tran 2015
[15] MOIT GIZ 2017b
[16] Brohm 2017
[17] ADB, 2015c
[18] Frontier 2015
[19] EuroCham, 2016
[20] VNA 2016
[21] World Bank (n.d.)
[22] IFC 2015
[23] VDB
[24] Eisinger, Cochu 2016
[25] World Bank 2016b
17/04/2018
[26] MOIT 2012
[27] ADB, 2016a
[28] EPRO 2015
[29] ADB 2016b
[30] ADB 2016b

17/04/2018
4 Summary
4.1 Summary
As the economy grew rapidly during the post-war years, Vietnam’s electricity sector was unable to
keep pace with the accompanying growth in demand. As a result, the government pursued a policy of
gradually liberalising the sector, centred on unbundling EVN’s assets and allowing the private sector
to participate in generation. While EVN’s unbundled assets continue to be controlled by EVN, the
government plans to eventually sell these to the private sector.
The country is heavily dependent on conventional hydro and coal for its power needs, but sees a
bigger role for renewable technologies moving forward. It has offered incentives such as feed-in
tariffs and avoided cost tariffs, as well as other fiscal incentives to private generators in order to
encourage participation in the renewable energy sector.
4.2 References
ADB 2011. Asian Development Bank (2011). Viet Nam's Success in Increasing Access to Energy
through Rural Electrification. Retrieved from https://think-
asia.org/bitstream/handle/11540/963/rural-electrification-vie.pdf?sequence=1
ADB 2014. Asian Development Bank (2014, December). Establishing the Wholesale Electricity Spot
Market. Retrieved from http://www.adb.org/sites/default/files/project-
document/153379/48328-001-tar.pdf
ADB 2015a. Asian Development Bank (2015, December). Vietnam Energy Sector Assessment, Strategy
and Road Map. Retrieved from https://www.adb.org/sites/default/files/institutional-
document/178616/vie-energy-road-map.pdf
ADB 2015b. Asian Development Bank (2015). Assessment of Power Sector Reforms in Viet Nam.
Retrieved from https://www.adb.org/sites/default/files/institutional-document/173769/vie-
power-sector-reforms.pdf
ADB 2015c. Asian Development Bank (2015 July). Renewable Energy Developments and Potential in
the Greater Mekong Subregion. Retrieved from
https://www.adb.org/publications/renewable-energy-developments-and-potential-gms
ADB 2016. Asian Development Bank (2015 July). Energy Efficiency Developments and Potential
Energy Savings in the Greater Mekong Subregion. Retrieved from
https://www.adb.org/publications/energy-efficiency-developments-and-potential-energy-
savings-gms
AES 2015. AES (2015 May). Press Release Deatails - AES Achieves Commercial Operation of 1,240 MW
Mong Duong 2 Plant in Vietnam. Retrieved from http://www.aes.com/investors/press-
releases/press-release-details/2015/AES-Achieves-Commercial-Operation-of-1240-MW-
Mong-Duong-2-Plant-in-Vietnam/default.aspx
Baker & McKenzie 2017. Baker & McKenzie (2017). Updates on Vietnam's Proposed Increase of Feed-
in-Tariff for Wind Power Projects. Link:
https://www.bakermckenzie.com/en/insight/publications/2017/09/vietnam-wind-power-
projects/

17/04/2018
Brohm 2017. Rainer Brohm (2017). The New FIT/Net Metering in Vietnam – Ignition for Market
Boost? Link: http://rainer-brohm.de/blog/
Dealstreet Asia 2014. Deal Street Asia (2014 December). BP to transfer Phu My 3 stake to SembCorp.
Retrieved from http://www.dealstreetasia.com/stories/bp-transfer-phu-3-stake-sembcorp-
1630/
ECA 2016 Economic Consulting Associates Limited & Vietnam Business Forum (2016). Made in
Vietnam Energy Plan. Retrieved from http://auschamvn.org/wp-
content/uploads/2016/10/Made-in-Vietnam-Energy-Plan-MVEP-v12.pdf
Ellis 2016. Ellis, M. (2016 June). Vietnam Wind Power Development Status. Asia Clean Energy Forum.
USAID. Retrieved from https://d2oc0ihd6a5bt.cloudfront.net/wp-
content/uploads/sites/837/2016/03/7Ellis_VN-Wind-Power_Opportunities-Challenges_Final-
Jun-1.pdf
ERAV 2010. Electricity Regulatory Authority of Vietnam (2010). Retrieved from

http://www.theapex.org/images/uploads/Dinh_The_Phuc-
Power_Market_Developments_in_Vietnam.pdf
ERAV 2016 . Dinh The Phuc. Solar Energy Development Political and Regulatory Framework in
Vietnam https://www.giz.de/fachexpertise/downloads/2016-en-pep-soa-vn-iv-pv-huc.pdf
Eisinger, Cochu 2016. Cochu, F. E. (2016 February). Enabling SME access to finance for sustainable
consumption and production in Asia. Adelphi/SwitchAsia. Retrieved from http://www.switch-
asia.eu/fileadmin/user_upload/Publications/2016/Green_Finance_Study_-_2016_-
_Cambodia.pdf
Eurocham 2016. European Chamber of Commerce in Vietnam. (2015). Whitebook 2016. Retrieved
from https://www.eurochamvn.org/node/14697
EVN 2015. Vietnam Electricity. (n.d.). Annual Report 2015, p.7. Retrieved from
http://www.evn.com.vn/UserFile/User/tcdl/BCTN%202015_Fi_Final.pdf
export.gov, 2016. Vietnam - Power Generation (2016, October). Retrieved from

https://www.export.gov/apex/article2?id=Vietnam-Power-Generation
Frontier 2015. Frontier Law and Advisory. (2015). Introduction to Decree 15 on PPP. Retrieved from
http://www.bold-
frontier.com/uploads/4/0/6/5/40657617/vietnam's_new_ppp_decree_overview.pdf
GIZ 2016. Deutsche Gesellschaft für Internationale Zusammenarbeit (2016). Summary of key
legislations on Support Mechanisms for renewable energy sector in Vietnam. Retrieved from
http://gizenergy.org.vn/media/app/media/PDF-Docs/Legal-
Documents/Support%20Mechanism%20for%20RE%20-
%20Fact%20file_27%2004%202016.pdf
VGP 2016. Government of Vietnam, 2016. Revised Power Development Plan VII. Retrieved from
http://datafilesbk.chinhphu.vn/file-remote-
v2/DownloadServlet?filePath=vbpq/2016/03/428.signed.pdf
Hovells (n.d.). Hovells (n.d.). Vietnam's Independent Power Producers Sector, Toward Market
Liberalisation. Retrieved from http://www.hoganlovells.es/files/Publication/2e8941d8-f8e9-
4aeb-88dc-6a80844338a6/Presentation/PublicationAttachment/fc70ab90-eaf1-4c1f-82b4-
fb9c782dec90/VietnamsIndependentPowerProducersSectorTowardsMarketLiberalisation.pdf
17/04/2018
IFC 2015. International Finance Corporation. (n.d.). IFC Financing. Retrieved from
http://www.ifc.org/wps/wcm/connect/c8672d00472ec6b4bea9fe57143498e5/IFC+in+EAP-
Financing-2015.pdf?MOD=AJPERES
IFC 2016a. International Finance Corporation (2016 June). IFC and Armstrong Promote Renewable
Energy in Vietnam by Investing in Local Hydropower Developer. Retrieved from
http://ifcextapps.ifc.org/IFCExt%5CPressroom%5CIFCPressRoom.nsf%5C0%5CF6753AD9A1B
5F8DF85257FE20037A05A
IFC 2016b. International Finance Corporation (2016). Climate Investment Opportunities in Emerging
Markets, An IFC Analysis. Retrieved from http://www.ifc.org/wps/wcm/connect/51183b2d-
c82e-443e-bb9b-68d9572dd48d/3503-IFC-Climate_Investment_Opportunity-Report-FINAL-
11_6_16.pdf?MOD=AJPERES
Minister 2011. Minister, O. o. (2011, June 29). DECISION ON MECHANISMS FOR SUPPORT AND
DEVELOPMENT OF WIND POWER. Retrieved from http://www.wind-
works.org/cms/fileadmin/user_upload/Files/Tables_of_Feed-
in_Tariffs/Vientnam_2011_QD_37-2011-TTg_EN_v1.pdf
Minister 2014. Minister, O. o. (2014, March 24). Decision on the mechanism to support the
development of Biomass Power Projects in Vietnam. Retrieved from
http://www.businessinfo.cz/app/content/files/teritoria/Vietnam_energetika-usneseni-
biomasa-140601.pdf
MIT 2017. Decision 4495/BCT by the Ministry of Industry and Trade dated November 30, 2017
regulates the electricity selling tariffs
MOIT 2012. Ministry of Industry and Trade. (2012). Policies and Initiatives on Energy Efficiency and
Conservation in Vietnam. Retrieved from
http://www.goethe.de/ins/vn/pro/2012/GreenHaus/Phuong_Hoang_Kim.pdf
MOIT 2015. General Directorate of Energy. (2015, August). Viet Nam Energy Policy. Retrieved from
https://eneken.ieej.or.jp/data/6238.pdf
MOIT 2016. Ministry of Industry and Trade (2016 December). Ban hành Biểu giá chi phí tránh được
năm 2017. Retrieved from http://www.moit.gov.vn/vn/tin-tuc/8899/ban-hanh-bieu-gia-chi-
phi-tranh-duoc-nam-2017.aspx.
MOIT/GIZ 2017a. MOIT/GIZ Energy Support Program (2017). It is necessary to develop legal
framework for wind energy in Viet Nam. Link: http://gizenergy.org.vn/en/article/need-
develop-legal-framework-wind-energy-viet-nam
MOIT/GIZ 2017b. MOIT/GIZ Energy Support Program (2017). VSSA urges the Government to adjust
price of bagasse-produced power. Link: http://gizenergy.org.vn/en/article/vssa-urges-
government-adjust-price-bagasse-produced-power
MOIT/GIZ 2018. MOIT/GIZ Energy Support Program (2018). Economic potential of ground-mounted
solar in Viet Nam reaches 7 Gigawatt until 2020. Link:
http://gizenergy.org.vn/en/article/economic-potential-ground-mounted-solar-viet-nam-
reaches-7-gigawatt-until-2020-and-several-hundred-gigawatt-once-market-starts-growing
MOIT (n.d.). Ministry of Industry and Trade. (n.d.). About. Retrieved from
http://www.moit.gov.vn/en/Pages/News.aspx?IDNews=45

17/04/2018
Nguyen, 2016. Nguyen T. H. Anh (2016). Vietnam revises its Power Development Plan: much greener
Retrieved from http://news.cleaned-usth.com/post/2016/03/31/Vietnam-revises-its-Power-
Development-Plan-much-greener
Petrovietnam. (n.d.). About (n.d.). Retrieved from

http://english.pvn.vn/?portal=news&page=detail&category_id=8&id=1056
Power-technology.com (n.d.). Power-technology.com (n.d.). Phu My Power Plants, Vietnam. Retrieved

from Power-Technology: http://www.power-technology.com/projects/phu-my-power-plants/
Sembcorp 2012. Sembcorp (2012 April).Press Release - SEMBCORP MAKES STRIDES IN FIFTH
VIETNAM SINGAPORE INDUSTRIAL. Retrieved from
http://www.sembcorp.com/en/media/2007/700_sembcorp-makes-strides-in-fifth-vietnam-
singapore-industrial-park-and-power-plant-projects-in-central-vietnam_23apr12.pdf
The windpower 2017. The windpower (2017 May). Bac Lieu Province Wind Power Plant (Vietnam).
Retrieved from http://www.thewindpower.net/windfarm_en_16325_bac-lieu-province-wind-
power-plant.php
Tran 2015. Tran, H. A. (2015, August 5). Renewable Energy Feed-in Tariffs in Vietnam. Retrieved from
LinkedIn Pulse: https://www.linkedin.com/pulse/renewable-energy-feed-in-tariffs-vietnam-
hai-anh-tran
tuoitrenews.vn 2017. Tuoitrenews.vn (2017 February). Four more wind power projects set to launch
in Vietnam. Retrieved from http://tuoitrenews.vn/business/39611/four-more-wind-power-
projects-set-to-launch-in-vietna
UNDP 2016. United Nations Development Program. (2016). Greening the Power Mix. Retrieved from
http://www.vn.undp.org/content/vietnam/en/home/library/environment_climate/greening-
the-power-mix.html
VDB. The Vietnam Development Bank (n.d.). Retrieved from http://en.vdb.gov.vn/VDB/about-

vdb/projects--clients
Viet Nam News 2013. Understanding the implementation of new amendments to electricity law;
http://vietnamnews.vn/economy/247551/understanding-the-implementation-of-new-
amendments-to-electricity-law.html#2ldP1i3r35YUuuQv.97
Vietnam Breaking News 2016. Soc Trang improves investment attraction;

https://www.vietnambreakingnews.com/2016/12/soc-trang-improves-investment-attraction/
Vinacomin. (n.d.). Vinacomin (n.d.). History. Retrieved from

http://www.vinacomin.vn/introduction/history-201507151622403603.htm
VNA 2016. Vietnam News Agency (2016 June 16). Vietnam prepares legal foundations for power
wholesale market. Retrieved from http://en.vietnamplus.vn/vietnam-prepares-legal-
foundations-for-power-wholesale-market/94705.vnp
VOV 2017. The Voice of Vietnam (VOV, 2017). Quang Tri: Huong Linh 2 wind power plant joins
national grid. Link: http://english.vov.vn/economy/quang-tri-huong-linh-2-wind-power-plant-
joins-national-grid-349887.vov

17/04/2018
VPCP 2016. Văn phòng Chính phủ (2016 November). Thông cáo báo chí về việc dừng thực hiện Dự án
điện hạt nhân Ninh Thuận. Retrieved from http://vpcp.chinhphu.vn/Home/Thong-cao-bao-
chi-ve-viec-dung-thuc-hien-Du-an-dien-hat-nhan-Ninh-Thuan/201611/20332.vgp
World Bank 2016a. World Bank (2016 February) Smart Grid to Enhance Power Transmission in
Vietnam. Retrieved from https://openknowledge.worldbank.org/handle/10986/24027
World Bank 2016b. World Bank (2016). Exploring a Low-Carbon Development Path for Vietnam.
Retrieved from
http://documents.worldbank.org/curated/en/773061467995893930/pdf/102363-PUB-VN-
Low-cost-carbon-date-Jan-20-2016-9781464807190-Box-394380B-PUBLIC.pdf
World Bank (n.d.). World Bank (n.d.). Vietnam - Vietnam Renewable Energy Development Project:
P103238 - Implementation Status Results Report: Sequence 12. Retrieved from Vietnam
Renewable Energy Development Project:
http://documents.worldbank.org/curated/en/2016/06/26530321/vietnam-vietnam-
renewable-energy-development-project-p103238-implementation-status-results-report-
sequence-12

17/04/2018

Online Course: Political and Market Framework: Vietnam

Uploaded by

Copyright:

Available Formats

Online Course: Political and Market Framework: Vietnam

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Online Course: Political and Market Framework: Vietnam

Uploaded by

Copyright:

Available Formats

Online course

Political and market framework: Vietnam

© Renewables Academy (RENAC) AG

Political and Market Framework: VIETNAM Page 1 of 31

Learning objectives of the course

2 Electricity market analysis

• describe the early development of the electricity sector in Vietnam.

Political and Market Framework: VIETNAM Page 2 of 31

2.2 History - current reforms

Political and Market Framework: VIETNAM Page 3 of 31

2.3 Power supply

Political and Market Framework: VIETNAM Page 4 of 31

Political and Market Framework: VIETNAM Page 5 of 31

Political and Market Framework: VIETNAM Page 6 of 31

2.5 Electricity prices

• describe the regulation of the electricity tariffs by the Vietnamese government.

Political and Market Framework: VIETNAM Page 7 of 31

Political and Market Framework: VIETNAM Page 8 of 31

2.6 Development plans

Political and Market Framework: VIETNAM Page 9 of 31

Political and Market Framework: VIETNAM Page 10 of 31

2.7 Grid conditions

Political and Market Framework: VIETNAM Page 11 of 31

2.8 Key market participants

• identify key players in the electricity market in Vietnam and

2.8.1 Public sector

Electricity Regulatory Authority of Vietnam (ERAV)

Vietnam Electricity (EVN)

Vietnam National Coal Mineral Industries (Vinacomin)

National Power Transmission Corporation (NPTC)

National Load Dispatch Center (NLDC)

Structure of the Power Sector in Vietnam (Data source: ADB 2015a)

Political and Market Framework: VIETNAM Page 13 of 31

2.9 Chapter endnotes

Political and Market Framework: VIETNAM Page 15 of 31

Political and Market Framework: VIETNAM Page 16 of 31

Political and Market Framework: VIETNAM Page 17 of 31

• apprehend the feed-in tariff system applied in Vietnam and

Political and Market Framework: VIETNAM Page 18 of 31

3.3 Applicable laws, guidelines and government policies

Political and Market Framework: VIETNAM Page 19 of 31

Investment Law tax incentives (Data source: ADB 2015b)

Fiscal incentives for renewable energy projects also include

3.4 Funding of RE investments

Funding sources for renewable energy projects in Vietnam (Source: RENAC)

3.5 Energy efficiency

Political and Market Framework: VIETNAM Page 22 of 31

3.5.1 Energy efficiency regulatory framework

3.5.3 Energy efficiency programmes

Political and Market Framework: VIETNAM Page 24 of 31

3.6 Chapter endnotes

Political and Market Framework: VIETNAM Page 26 of 31

Political and Market Framework: VIETNAM Page 27 of 31

ERAV 2010. Electricity Regulatory Authority of Vietnam (2010). Retrieved from

export.gov, 2016. Vietnam - Power Generation (2016, October). Retrieved from

Political and Market Framework: VIETNAM Page 29 of 31

Petrovietnam. (n.d.). About (n.d.). Retrieved from

Power-technology.com (n.d.). Power-technology.com (n.d.). Phu My Power Plants, Vietnam. Retrieved

VDB. The Vietnam Development Bank (n.d.). Retrieved from http://en.vdb.gov.vn/VDB/about-