Vietnam : Maximizing Finance for Development in the Energy Sector
Vietnam has successfully developed the electricity and gas sectors that have contributed substantially to the economic development of Vietnam. To date, near universal electrification has been achieved, and the industrial, commercial, and residentia...
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| Format: | Report |
| Language: | English |
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World Bank, Washington, DC
2019
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| Online Access: | http://documents.worldbank.org/curated/en/290361547820276005/Vietnam-Maximizing-Finance-for-Development-in-the-Energy-Sector http://hdl.handle.net/10986/31246 |
| Summary: | Vietnam has successfully developed the
electricity and gas sectors that have contributed
substantially to the economic development of Vietnam. To
date, near universal electrification has been achieved, and
the industrial, commercial, and residential sectors benefit
from increasingly reliable electricity and gas supply. By
early 2018, 99.9 percent of the country's communes and
99 percent of its rural households were connected to the
grid. Both EVN and PVN, the state-owned electricity and gas
utilities, are operationally and technically strong. Vietnam
has a hydropower system, claiming 38 percent of installed
capacity in 2017, followed by coal (34 percent) and natural
gas (18 percent). Future investment requirements in
generation are huge, and the country is expected to increase
generation capacity from the current 42 GW to 100 GW by
2030. Because mostdomestic hydropower resources have already
been developed, and to reduce the planned scale-up of
coal-fired power generation, Vietnam has established
renewables targets for solar and wind (18 GW by 2030).
Starting in 1995, PVN, jointly with international oil and
gas companies, developed large-scale gas fields in offshore
central and southern Vietnam. In 2017, total offshore gas
production was about 10 bcm, mostly destined for
gas-to-power. PVN is one of the most significant enterprises
operating in the Vietnamese economy, accounting for about 20
percent of national GDP and contributing to 20–30 percent of
state budget revenues. To improve the efficiency of the gas
and power sector, the government has embarked on introducing
competition in those sectors. Electricity liberalization
started in 2004 with the unbundling of EVN, the
establishment of a regulator, and the introduction of a
competitive generation market to ensure long-term
sustainability of the power supply. The wholesale
electricity market will be fully operational by 2021,
allowing large eligible consumers to contract directly with
power generators. The government is embarking on a similar
liberalization process for gas, is currently preparing a
relevant restructuring roadmap for PVN, and introducing a
legal and regulatory framework for promoting LNG
development, especially for gas-to-power. |
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